One Person Company
According to the Companies Act of 2013, a one-person company is a legal entity. There is just one shareholder in the company. OPCs are established when a firm has a single founder or a single successor who does not wish to involve others in the business.
Overview
One Person Companies are preferred by entrepreneurs who wish to launch a sole proprietorship but yet want the benefits of a corporation. An OPC can act independently, sue, and be sued on its own behalf because it is a legal construct.
A nominee must be mentioned by the sole OPC member when registering the business. In the event that the company’s sole member passes away, the nominee may decide to either close the business or go on as a sole member.
An OPC has two options for becoming a private limited company: either willingly or automatically. If the OPC is two years old, it can choose to become a private limited company; if its revenue exceeds two crore rupees, it will automatically become a private limited company. However, prior to the conversion, a few filings must be finished.
Benefits of One Person Company
Let’s examine the benefits of a one-person business.
Restricted Responsibility:
OPC shareholders have little liability in the event of unfavorable circumstances. The shareholder’s liability is capped at the amount they invested in the one-person company. Every one of the shareholder’s personal assets will be secure.
Reduced Compliance Cost:
In comparison, a one-person company has less of a compliance burden while yet enjoying all the advantages of a private limited company. An OPC is not required to host quarterly board meetings, annual general meetings, etc. OPC is exempt from a number of compliance requirements.
Social Recognition & Legal Status:
Governments and large corporations favor one-person companies over sole proprietorships.
Checklist/Requirements
Essential Need
- One stockholder
- No fewer than two directors; no more than fifteen
- One or more nominees
- A director and a shareholder may be the same individual.
- This address serves as the company’s registered address.
Documents needed
For every shareholder and director
- PAN card (required for Indians and others if held)
- A valid passport (for foreigners, Indians, and NRIs if possessed)
- Address proof (any one of them) that is no older than two months a. A bank statement b. The phone bill. The Mobile Bill d. Bill for Electricity
(Note: Foreigners and NRIs must get their documents notarized and apostilled if they were signed outside of India or issued by foreign authorities.)
For the Registered Address 1. Owner’s NOC* 2. The Rental Agreement 3. Utility Bill *
How to Register One Person Company?
After the company’s founders have decided on a name for it. The One Person Company incorporation process then begins as follows (Note: The company name and brand name do not have to match; the company name and brand name might differ).
Step 1: Apply for a Director’s Identification Number (DIN) and a Digital Signature Certificate (DSC).
Step 2: Submit a name reservation application
Step 3: Creating and submitting the AOA and MOA to register the one-person business
Step 4: Apply for the company’s PAN and TAN.
Step 5: Issue the company’s Certificate of Incorporation, PAN, and TAN.
For the Registered Address 1. Owner’s NOC* 2. The Rental Agreement 3. Utility Bill *
Key Deliverables
a. Directors’ and shareholders’ DSC
b. The TAN number and PAN
c. The incorporation certificate
d. The company’s MOA and AOA
Why Choose Us
Friendly to Entrepreneurs
Our pros will offer you all of the promised deliverables within the allotted period, and we make the procedure so quick and simple that you won’t even feel the headache of all the paperwork.
Skilled Experts
Every one of our experts is trained and skilled in that specific field. ensuring that no errors are made when filing with the authorities in order to prevent the company from incurring penalties for errors.
One Place to Go for All of Your Needs
We assist you at every stage of your company’s development, including incorporation, accounting and taxation, secretarial compliance, and legal support.
Economical
Since cost is a major factor in any business’s growth stage, we don’t surprise our clients with extra fees; instead, you pay what is shown in the original plan.
