One Person Company
Corporate structure yet single owner
What is a One Person Company?
The concept of One Person Company was introduced in the Companies Act, 2013. It is for the individuals who want to run their proprietorship business in the corporate structure.One Person Company is the combination of Sole Proprietorship Firm and Private Limited Company. Through the registration of One Person Company, an owner can enjoy the benefit of separate legal entity and perpetual existence which is the limitation of a proprietorship firm.
For One Person Company registration, only an individual is required as a member. Only 1 director is required for the incorporation of One Person Company which is not possible in a Private Limited Company.Further, in an OPC, a nominee is required. A Nominee is an individual who will become a member of the company in case of death or disability of the sole member of the One Person Company. The regulations of Private Limited Company will equally applicable to the One Person Company except where specifically provided.
If the paid-up share capital of an OPC exceeds Rs. 50 Lakhs and its average annual turnover of the preceding 3 years exceeds Rs. 2 crores then the One Person Company must be converted to Private Limited Company or Public Limited Company by fulfilling minimum requirements.
Lets go for the One Person Company
Registration
Our Best Pricing
Plans of One Person Company
Plus
- DIN (Director Identification Number)
- DSC (Digital Signature)
- Drafting of MOA, AOA and other incorporation documents
- Incorporation of Company via Spice+
- Stamp duty inclusive up to Authorized capital of Rs.1 Lakh
- PAN & TAN
- EPFO
- ESIC
- Professional Tax (Maharashtra & Karnataka only)
- Bank Account
Pro
- DIN (Director Identification Number)
- DSC (Digital Signature)
- Drafting of MOA, AOA and other incorporation documents
- Incorporation of Company via Spice+
- Stamp duty inclusive up to Authorized capital of Rs.1 Lakh
- PAN & TAN
- EPFO
- ESIC
- Professional Tax (Maharashtra & Karnataka only)
- Bank Account
- INC-20A
- GST Registration
discover the features
Simple solutions for One Person Company
Benefits of One Person Company
Separate Legal Existence
The Company is considered an artificial person created by law, thus the existence of One Limited Company is distinct from its member that is not there in a proprietorship firm.It enjoys its own identity, and thus it can sue or be sued in its name and it can also possess the assets in its name.
Limited Liability
The characteristic of Limited Liability is like a cherry on the cake, the shareholders enjoy the privilege of having liability limited only up to the amount of shares subscribed. Hence unlike Partnership Firm, investors are attracted to this form of business.
No Minimum Capital Requirement
There is a misbelief that one requires huge investments to start a Company, though in reality there is no minimum capital requirement, one can start a One Person Company even with minimal amount.
Startup Benefits
Company is one of the most organized and trusted forms of business, it is recognized on all the platforms of governments, such as Startup India Registration, for availing the benefits one must be having the registered entity where One Person Company is available as one of the option.
Further for registration under MSME, One Person Company is eligible.
Perpetual Existence
The existence of One Person Company is not dependent on any factor, hence member and directors of the company may change but it will not affect the status of the Company.
Less Compliance
The Companies Act provides benefits to the One Person Company by providing exemptions in certain provisions. Hence, OPC has less compliance as compared to a Private Limited Company.
Required Documents for One Person Company
The documents required for company registration are categorized as under
| For Sole Member and Nominee | For Registered office |
| Permanent Account Number (PAN) | Business address proof(Electricity bill/Telephone bill/Gas bill/Mobile bill- not older than 2 months) |
| Photo Identity proof (Adhar card/Driving License/Election card/Passport) | No objection certificate from the owner |
| Residential address proof (Bank statement/Electricity bill/Telephone bill/Gas bill/Mobile bill- not older than 2 months) | Rent agreement (if rented) |
| Passport size photograph |
Procedure Of Registration Of One Person Company
- Obtaining Digital Signature (DSC)
- Checking the Name availability
- Drafting of company registration documents
- Filing of incorporation forms with MCA
Immediate Post Incorporation Compliance
- Appointment of first Auditor
- Opening of bank account
- Deposit the amount of subscribed share capital in the current account of the company
- Filing form for the commencement of business
Difference Between OPC And Private Limited Company
| One Person Company | Private Limited Company | |
| Number of Members | Only one person can become a member of the OPC. | Minimum 2 and Maximum 200 persons can become a member of Private Limited Company |
| Number of Directors | Minimum 1 and maximum 15 directors can be there. | Minimum 2 and maximum 15 directors can be there. |
| AGM | No need to conduct an AGM as there is only one Member. | AGM should be conducted once in a year. |
| Nominee | It is mandatory to appoint Nominee in OPC. | There is no such requirement in Private Limited Company. |
| Foreign Direct Investment | There is a complete restriction on FDI in OPC. | In Private Limited Company FDI is allowed as per RBI guidelines |
| Restriction in Business Activity | The OPC is not allowed to carry on the business-like investment in securities, NBFC, and other financial activities. | There are no such restrictions in Private Limited Company. |
| Investment | No person can invest in OPC as there can be only one member. | The Investment is allowed by subscribing the shares of Company, subject to maximum of 200 members. |
Get free personalized advice from
our expert
Wisefilings has a team of professionals who are Chartered Accountant, Company Secretary and lawyers with vast knowledge and experience in the field of legal services. So let the experts of Wisefilings focus on the legality of your business, to let you focus on your business goals.
Seek Help of an Expert
Get answers to all your queries related to
One Person Company
As the name suggests itself that there is a requirement of only one person to incorporate the OPC as compared to the minimum requirement of 2 persons in the case of Private Limited Company.
The name of Nominee needs to be decided at the time of Incorporation by taking his written consent in the prescribed form, Nominee is the person who automatically becomes the member of the Company in case of death of the sole member of the OPC.
Only an Indian citizen and an Indian resident (Natural Person)are eligible to become a Nominee in an OPC.
Yes, OPC can be converted into Private Limited Company, there are two ways:
- Voluntarily- That is possible only after completion of 2 years of Incorporation.
- Compulsory Conversion- If the Paid share capital exceeds Rs.50 lakhs and the average annual turnover of preceding 3 years exceeds Rs.2 crores.
It takes normally 10-12 working days to incorporate a One Person Company; however it is always subject to MCA Approval.
An individual who is an Indian citizen and a resident in India can only incorporate a One Person Company.
There is a requirement to have a minimum of one Director and maximum directors’ limit is 15.
Yes at any time after Incorporation, the nominee can be changed by following the due process.
No, at one point in time, a person can become a member or nominee of one OPC only.
Yes, the name of the company the word “OPC “must be included. For example, XYZ (OPC) Private Limited.
customer says
Know how our customer experienced our service. You can also be the one,
opt our service now and share your personal experience here.
