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One Person Company
One Person Company is the most popular form for small businesses in India.
1 DIN + 1 DSC + DRAFTING & STAMPING + MOA + AOA + PAN + TAN.
One Person Company
A one person company is kind of business which is owned by a single person. In this kind of a business, the same person can both be the director as well as the shareholder. It’s a better option than a sole proprietorship and gives a person full control over the business while limiting his liabilities.
One Person Company is a business entity in which there is only one owner with limited liabilities who can act both as a shareholder as well as the director. The concept of OPC is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. The liability of owner is limited to the invested capital in this form.
The idea of One Person Company (OPC) in India was introduced to give a boost to entrepreneurs who have great potential to start their own venture by allowing them to create a single person company.
If you independently want to commence your business without involving any other person, then One Person Company (OPC) is the ideal choice for you.
If an OPC exceeds a turnover of over Rs. 2 crore or has a paid-up capital above Rs. 50 lakhs, it must be turned into a private or public limited company within six months
Proprietorship has many disadvantages like
- One cannot take investments
- Unlimited liabilities
- No reservation of name on National Level
- No Transparency
One Person Company has following features and restrictions:
- It allows a significant degree of separation between operations and ownership.
- Less compliance is needed as compared to a private limited company.
- It is useful for small entrepreneur to directly access target market.
- Banking and financial institutions prefer to lend money to the company instead of proprietary firms.
- It makes decision-making process much faster because of single ownership.
- The owner can convert OPC to a private limited company with ease.
DETAILS
| Digital Signature – ( 1 DSC ) 800 | |
| Director Identification Number – ( 1 DIN ) 500 | |
| Name Application – 1,000 | |
| Registeration Fees – CHANGES AS PER SHARE CAPITAL 2,800 | |
| Stamp Duty – CHANGES AS PER SHARE CAPITAL 1,300 | |
| Bond Paper & Notarization – 350 | |
| Pan & Tan – 400 | |
| Lisoning Fees – | |
| Other Expenses – 1,450 | |
| Professional Fees – 3,399 | |
| Waiver | |
| Service Tax | |
| Notes: | |
WHAT IS INCLUDED IN OUR PACKAGE?
- 1 Digital Signature
- 1 DIN (Director Identification Number)
- Drafting of MOA, AOA & other Affidavit & Declarations
- Notarization of Documents
- Stamping of Documents
- Filing of Forms
ADVANTAGES
LIMITED LIABILITY
The liability of the shareholder is limited and personal assets are safe. The liability of the shareholder will only be limited to the unpaid subscription money in his name. OPC is a separate entity and there will be a true distinction between the promoter and the company.
SINGLE OWNER
There is only one owner who can act both as a shareholder as well as the director.
COMPLETE CONTROL
This leads to fast decision making and execution. Yet he/she can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.
LEGAL STATUS & SOCIAL RECOGNITION
One Person Company is a Private Limited Structure in the eyes of law, which gives suppliers and customers a sense of confidence in business.
SEPARATE LEGAL ENTITY
The biggest advantage of a one person company is that its identity is distinct from that of its sole owner. If a promoter were to operate as a Sole Proprietorship, the business would come to an end on his/her death but since an OPC is a separate legal entity, therefore, ownership would pass on to the nominee and an OPC continue to exist.
EASY COMPLIANCES
OPC is one of the easiest forms of corporate entities to manage. Very few ROC filing is to be filed with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM), so lesser compliance cost.
MINIMUM REQUIREMENTS
- Minimum 1 Director
- Minimum 1 Shareholder (The director and shareholder can be same person)
- Only Indian residents can be Shareholder & Nominee
DOCUMENT REQUIRED
DIRECTOR & NOMINEE
- COLOR PHOTO(PASSPORT SIZE)
- PAN Card – Self-Attested & scanned copy
- IDENTITY PROOF (Self-Attested & scanned copy ANY 1) Driving License / Voter ID / Aadhaar Card / Passport
- ADDRESS PROOF (Self-Attested & scanned copy ANY 1) Bank Statement / Mobile Bill / Telephone Bill / Electricity Bill
Note:
- Address proof should be in the name of “Applicant only”
- Address proof should not be older than 1 Month
FOR REGISTERED OFFICE
- ANY 1(TELEPHONE BILL / ELECTRICITY BILL / GAS BILL / MOBILE BILL
- NOC (No Objection Certificate from Owner) On Plain Paper
PROCESS FLOW
NO | STEP | (WORKING DAYS) |
1 | Initial Documentation
|
DEPENDS UPON TIME TAKEN BY CLIENT |
2 | Application of DSC ( Digital Signature Certificate) | 2 DAYS |
3 | Application for DIN (Director Identification Number | 1 DAY |
4 | Application of Name | 3 DAYS |
5 | Drafting of MOA, AOA & other declaration | 2 DAYS |
6 | Application of Registration of Company | 7 DAYS |
7 | Application of PAN Card & TAN | 2 Days |
Got Questions?
FAQ
Only one Director is required to form a One person Company
Only a person, who is an Indian citizen and resident in India, shall be eligible to incorporate a One Person Company. For becoming a director in a company, no professional or educational qualification is required. Any individual can become a shareholder in a one person company.
Yes, One Person Company will be formed as similar as a “Private Limited Company”. It can be formed as company limited by share capital or limited by guarantee or unlimited company. The words “One Person Company” will have to be mentioned in brackets below the name of such company, wherever its name is printed, engraved or affixed.
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become director of any company.
Only a natural person who is an Indian citizen and a resident in India is eligible to be a nominee member. Nominee must also be over 18 years of age.
• We just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. • Make sure that company name is not similar to any other Private Limited, OPC, LLP or Public limited company. Also, do check If your first is not a registered trademark taken by anybody under the IP Act. • Make sure the name is not too generic to be accepted by Registrar and also, try not to use abbreviations, adjectives. • While choosing the name make sure that name should contain the objective of the business like Construction, Trading, Marketing, Technology , Engineering, Agro etc. • Name should ends with OPC Private Limited • Finally before selecting Names it will be advisable to check on MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company’s objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted, the last page of the MOA and AOA is known as subscriber sheet which need to be filled in by the promoters in their own hand writing including their personal details and shareholding ratio.
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
A Company can own and enjoy property in its own name, neither the members are not owners of the company’s property and nor the members have insurable interest in the property of the company.
No, the company incorporation process is online. You can email / Upload the required documents.
To incorporate a company we required approximately 10 to 12 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.
‘Company Address’ is the address of the Registered Office of the proposed company which is used for all official communications. A temporary address is required, at the time of registration, which could be the address of any of the including Directors. Post registration process applicant has to provide the permanent business address of the registered office with all the documentary proofs of address, ownership
When a One Person Company gets incorporated, it cannot convert itself to Private or Public company for a period of not less than two years from the date of incorporation. ? If the time period has elapsed and two years time period is over, a One Person Company can apply for converting itself to Private Limited Company or Public limited company.
When a One Person Company has a paid-up capital more or equal to Rs. 50 lakhs or the Annual turnover for the relevant financial year exceeds Rs. 2 crore, then in such conditions, the company has to compulsorily convert itself into Private Limited Company or Public Limited Company as per the Rule 7(4) of the Companies (Incorporation) Rules, 2014.