One Person Company (OPC) is a business entity in which there is only one owner with limited liabilities who can act as a shareholder as well as the director. The individual can take riskier decisions without having to worry about losing personal assets and this has encouraged many startups and young entrepreneurs to register as an OPC.
One Person Company - Registration
@ INR 2499/- +Govt. Fees
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Name Reservation - 1 Run
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DSC & DIN
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Drafting of MoA, AoA, Declaration & Consent
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PAN, TAN, Certificate of incorporation
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Govt Fees & Stamp duty for Authorized Capital upto Rs. 1 Lakh expect for MP, Punjab, Kerala
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Excludes foreign national / Body Corporate as director or business needing RBI/SEBI approval
Documents Required
1. PAN, Photograph & Specimen Signature
2. ID Proof - Voter ID/Passport/Driving License
3. Address Proof - Bank Statement / Utility bill
4. Registered Office - Property deed (Owned) / Rent Agreement, Utility Bill, NOC from owner
5. Self Declaration about directorship in other co.
6. Photo ID and Address proof of Nominee
Only 3 steps to follow
Fill the contact form
to get started with registration
Our Expert will connect with you for documents & file the application
Once approved, company is formed alongwith PAN & TAN
One Person Company Registration
One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. 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.
Benefits of OPC
Limited Liability:
The director's liability is limited to the extent of shares held by him, making his personal property safe.
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Going Concern:
Sole propriety business ends with the death of the owner. OPC being separate legal entity, the ownership passes to the nominee director and it continues to exist.
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Credibility:
The statutory audit is compulsory for OPC, which results in transparency and greater credibility amongst customers & vendors.
Documents Required
For Director (Scan Copy)
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1. PAN Card
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2. Voter's ID / Passport / Driving License
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3. Latest Bank statement / Latest Utility Bill
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4, Passport sized Photograph
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5. Specimen Signature
For Registered Office (Scan copy)
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1. Latest Bank statement / Utility Bill
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2. Notarized rental agreement in English
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3. No-objection certificate from the property owner
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4, Sale deed / Property deed (Owned property)
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( It can be a commercial or residential unit)
FAQs
1. What is a One Person Company (OPC)?
One Person Company is a new type of business entity. A private limited company can be formed with a minimum of two directors and shareholders. The directors and shareholders can be same individuals. One person company does away with the requirement of minimum two shareholders. It allows a single entrepreneur to get his business registered as a company and get limited liability protection.
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2. What are the mandatory compliance that an OPC needs to observe?
The basic mandatory compliance are:
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Maintenance of proper books of accounts
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Statutory audit of Financial Statements
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Filing of business Income tax return every year before 30th Sep
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Filing Annual ROC return which includes form MGT-7 - Statement of Disclosure of Shareholders and Directors
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3. Who can register for an OPC?
A natural person who is resident in India and Indian Citizen who is living in India for a period of 182 Days is eligible to act as a member and nominee of an OPC. ​A person can be only being member of one OPC. ​If a person becomes member or nominee of 2 or more than 2 OPC’s then he has to withdraw his membership from the OPC within 182 days.
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4. How many directors can there be in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
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5. How much does it cost to run an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 6,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.
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6. What is the minimum capital requirement to start an OPC?
An OPC can be started with a minimum authorised capital of Rs. 1 lakh. There is no mandatory requirement for a minimum paid up capital. Hence, you can start as an OPC with a capital contribution as low as Rs. 2. However when the paid up capital exceeds Rs. 50 lakh, OPC must mandatorily convert to a private limited company( pvt. ltd.). Also, when the average turnover for 3 consecutive years becomes Rs. 2 crore or more, there is a need to convert into a pvt. ltd.
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7. Is there any tax advantage on forming an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid at flat rate of 30% on profits, Dividend Distribution Tax and Minimum Alternate Tax is applicable.
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8. Is stamp duty payable during incorporation process?
Yes, Stamp duty charges are imposed by the state in which the registered office is proposed to be located. The charges are on MOA, AOA & form INC 32. These charges are covered under the plan for all the states except Punjab, Kerala & Madhya Pradesh. Our experts will guide you on additional charges if any for Punjab, Kerala & Madhya Pradesh.
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9. Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.
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10. What is the main drawback of an OPC?
The MCA is skeptical about a single person in charge of a large corporation. Therefore, it requires all OPCs to be converted into private limited or public limited companies on crossing a certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be converted into an OPC.