One Person Company Registration Overview

Benefits of Forming a One Person Company

OPC is a business that may be started with just a member and one director. Better chances are offered with minimum compliance.

• Simple Incorporation

A one-person company allows someone to launch a business with a minimal amount of compliance. Only one member and one nominee are needed for OPC to be incorporated. Its incorporation does not call for any paid-up capital.

• Total Authority Retained by the Individual

Due to the fact that it is a one-person business, just that one person has full control. As there won't be any divergent viewpoints, decision-making becomes quick and simple, making it simple to administer and manage the company.

• Simple Tax Compliance and Flexibility

One Person Companies are subject to restricted or reduced compliance under the 2013 Companies Act. Less compliance means less paperwork, and less compliance also means less time spent on it. The OPC can take advantage of tax availability without having to demonstrate financial flow. Only the Director is required to file yearly returns and account books.

• Advantages for Small-Scale Businesses

One Person Company can take use of the advantages offered to small-scale businesses, such as simple finance, little compliance, loans with cheaper interest rates, etc.

• Simple Funding

The OPC may be funded by financial institutions, capital businesses, and other investors. To expand its finance from outside sources, the OPC might become a private company.

• Lowest standards for registration

In comparison to the formation of other types of organizations, the criteria for registering a one-person company are quite minimal.

• More credibility

OPC has more credibility since its accounts are yearly audited due to the fact that it is owned by a single individual.

• Significant expansion

The One Person Company is entirely based on a Centralized Management System that drives the Company towards attaining considerable growth and a larger contribution to the economy of our nation.

• Income tax advantages

You may register your OPC under the government's Start-up India program and benefit from the income tax break for at least five years if your business is exceptional and has the potential to generate more job opportunities.

• Sole proprietorship

Because just one person is in charge of the entire company, there is no chance of an interest conflict among the shareholders. This gives businesses more stability.

• Higher transparency

A further advantage of a one-person business is greater transparency when dealing with the government. The Government and the petitioner, respectively, both exhibit transparency.

• Advantageous to industries like MSME and SME

OPC is advantageous to several particular industries, including MSME and MSE. MSMEs and SMEs are what allow businesses in rural regions to thrive, thus OPC can improve these services. Due to the fact that a one-person business depends on financial assistance from government agencies and organizations, the OPC can avoid any debt thanks to its restricted responsibility. OPC incorporation can enhance the standing and development of MSMEs and SMEs.

Features for One Person Company

• Perpetual Succession

The OPC features a characteristic known as everlasting succession, which applies even if there is just one member left. The candidate will lead the company upon the passing of the only member.

• Separate legal entity with limited liability from its member

A member of a One Person Company is only partially liable. OPC has a distinct legal existence from its members due to its status as a business. Due to the responsibility being restricted to his shares and him not being responsible for the Company's loss, the member is protected by the distinct legal entity. Only the Company may be sued by the Company's creditors; neither the Director nor a Member may be sued.

• Nominee

With his previous approval, the nominee's name will be included in the Memorandum of Association. In the event of the single proprietor's demise or inability to enter into a contract, this nominee would act in the proprietor's place. Additionally, a formal authorization from this nominee will be sent to the registrar of businesses.

• Sole shareholder and director

There is only one Director in an OPC since the sole member manages the OPC. No independent or executive directors are required in this kind of company because there is only one member managing the OPC. Since OPC only requires one member, the shareholder will be responsible for all duties.

• Proprietor of the home

Due to the OPC's artificial person status, it is impossible for anybody to make a claim to any of the business-related property it owns, including any machinery, land, factories, homes, buildings, and other assets. OPC has the authority to buy, sell, and own the property under its name.

The requirements for registering a one-person company

The following requirements must be met before registering as a One Person Company:

• A natural person who resides in India may have formed OPC in the year before.
• A single member can create an OPC.
• The name must be original and distinct from any other brand or corporation already in use.
• A person may not incorporate more than one OPC or serve as more than one OPC's nominee.
• At least one director is required.
• In the case of OPC, the minimum paid-up capital requirement is Rs. 50 lakh, while the average annual turnover in the last fiscal year was Rs. 2 crore. However, the paid-up and turnover limits are unrestricted as of the most recent budget.
• One Person Company (OPC) Private Limited must be included in the name.
• Indication of the other person's name as a nominee is a prerequisite. A nominee joins the One Person Company in the same way that the subscriber would have in the case of their demise.

Documents Needed to Register a One-Person Company

To register a one-person business, the following documents must be provided:

• Passport or PAN card
• In the case of NRIs and foreign nationals, a passport
• Driver's license and voter ID in scanned form
• Most recent gas or energy bill, bank statement, mobile phone bill, or landline bill
• A sample signature
• Photos the size of a passport

The paperwork has to be self-attested. The paperwork for NRIs needs to be apostilled- or notarizedsigned.

Additional Paperwork Needed by Registered Office:

• Scanned copies of your gas or energy bill, your bank statement, and your mobile or landline bill
• Scanned copy of the lease contract
• If the member is the property's owner, a scanned copy of the No-objection Certificate (NOC) from them will be followed by a scanned copy of the sale deed.

How to Register a Single-Person Company

The applicant must do the following actions in order to register a one-person business:

Step 1: Obtaining DSC

In order to register, the applicant must get a Digital Signature Certificate (DSC) from the certifying authority.

Step 2: Obtaining DIN

The intended director's Director Identification Number (DIN) must be obtained. Along with the Director's information, the DIN is entered into the SPICe+ Form.

Step 3: Name approval

The official name of the business will be XYZ (OPC) Private Limited.

The RUN service will be used to verify the availability of names, and SPICe+ (INC 32) can be used to apply for one name for the OPC.

Step 4: One-Person Company Incorporation

Form SPICe+ for OPC incorporation must be filed within twenty days of the date RUN, or the approval of the name, was approved. The form SPICe+ and other necessary documentation must be attached before being posted to the MCA portal. At incorporation, the PAN and TAN will be generated automatically.

Step 5: Obtaining a Certificate of Incorporation

If the information and supporting documentation are suitable, the Registrar of Companies will issue a COI, or Certificate of Incorporation.

Limitations for One-Person Companies

• No person under the age of 18 may join the One Person Company or serve as a candidate.
• A beneficial interest in a share cannot be held by a minor.
• Before the passage of two years from the date of OPC's establishment, OPC is not permitted to undergo a voluntary conversion.
• Under the provisions of Section 8 of the Act, it cannot be formed or changed into a corporation.
• Non-banking financial investment operations are not something it can do.

Procedure for OPC Registration under Legalstartup

To avoid many of the possible problems that lurk under OPC Registration and to fully comprehend the necessity, it is advised that an attorney with "Company Incorporation experience" be chosen. So, in order to use our services for the described procedure:

• Buy a Plan for Professional Assistance
• Add OPC Registration Questions
• Send Documents to Legalstartup Expert
• Create an OPC Registration Application+ Complete all requirements for admission for preliminary screening.
• Finished procedural steps
• Get OPC Registration Completed Right at Your Doorstep!

You must give the necessary details in order for the process to start. The Attorney will begin addressing your request once they get the funds and pertinent data.