About One Person Company (OPC)

An One Person Company (OPC) is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.

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Register my One Person Company (OPC)

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Our scope of work

    1. Any amount of Capital;

    2. Application for 1 Director Identification Numbers;

    3. Application of 1 Digital Signatures (validity 2 years);

    4. Name Approval;

    5. Drafting of Memorandum and Articles of Association;

    6. Drafting of other additional documents;

    7. Preparation of various eforms;

    8. PAN & TAN Application

    9. Resubmission of eforms, if any;

    10. Obtaining Certificate of Incorporation from Registrar

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Know more about One Person Company (OPC)

One Person Company

An One Person Company (OPC) is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.

 

1. Director:

  • Minimum no. of directors required is 1.
  • Any natural person can be a director of the company.
  • Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
  • Directors are the managers and they are responsible for day to day functioning of the OPC.

 

2. Shareholder:

  • Minimum no of shareholders required is 1 and shall be Indian Resident.
  • Director and Shareholders can be the same.
  • Shareholder is the owners of the company.
  • The shareholder has to appoint nominee in case of his/her death the nominee takes over the place of the shareholder.

 

3. Capital:

  • There are 2 types of capital i.e. Authorize Capital (It is the capital up to which OPC is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
  • There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

 

4. Registered Office:

  • Any place can be made as the registered office of the OPC even the residential place can be used as the registered office of the OPC.

 

5. Registering Authority:

  • Ministry of Corporate Affairs.

 

6. Required Documents

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)

 

Shareholder and Nominee Holder

> PAN Mandatory

> Proof of Identity – Voter Id/Passport/Driving License

> Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)

 

Obtain Digital Signature Certificate (DSC)

01

Prepare SPICe+ form (Part A – Name availability and reservation request)

02

Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)

03

Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)

04

Download all the e-forms prepare online and affix DSC on all the e-forms.

05

Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.

06

Verification of documents / forms by RoC

07

Issue of Certificate of Incorporation by RoC

08

Advantages

OPC is a separate legal entity and capable of doing everything that an entrepreneur would do.
OPC can raise funds through venture capital, financial institutions, angel investors, etc. An OPC can raise funds thus graduating itself to a private limited company.
Letters ‘OPC’ to be suffixed with the name of OPCs to distinguish it from other companies OPC have to face little compliance burden as compared to private limited companies, hence OPC can more focus on other functional and core areas.
An OPC can avail the various benefits provided to Small Scale Industries like the lower rate of Interest on loans, easy funding from the bank without depositing any security to a certain limit, manifold benefits under Foreign Trade policy and others. All these benefits can be boon to any business in initial years.
One of the advantages of One Person Company is that it has more opportunities, limited liability since the liability of the OPC is limited to the extent of the value of the share you hold, the individual could take more risk in business without affecting or suffering the loss of personal assets. It is the encouragement to new, young and innovative start-ups.
You, only the owner helpful in quick decision-making, controlling and managing the business without following any elongated processes and methodologies as adopted in other companies. The sense of belonging inspires to grow the business further.
Any remuneration paid to the director will be allowed as deduction as per income tax law, unlike proprietorship. Other benefits of presumptive taxation are also available subject to income tax act.

Disadvantages

One Person Companies cannot get its shares listed in any stock exchange through initial public offerings. With this restriction, One Person Companies may find it difficult to attract outside investors to buy the shares.
Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company and shall be a nominee for the sole member of a One Person Company. Further a single person is not eligible to incorporate more than One OPC and become nominee in more than one such company.
OPC is suitable only for small business. OPC can have maximum paid up share capital of Rupees Fifty Lakhs or turnover of Rupees two crores. Otherwise need to be converted into private limited. One Person Company cannot get converted into a private or public limited company unless two years has expired from the date of incorporation. Further One Person Company cannot be incorporated or converted into a company under Section 8 of the Act. Section 8 Company is not for profits companies.
One Person Company cannot carry out Non – Banking Financial Investment activities including investment in securities of anybody corporate. Non Residents Indians are not allowed to incorporate a One Person Company in India.
Income tax rates applicable on private limited companies apply on One Person Company too, which is quite higher as compared to income tax rates applicable on proprietorship concerns.
Foreign Direct Investment is not allowed in One Person Companies.
Factors of Comparison Private Company Public One Person Company Limited Liability Partnership Partnership Sole Proprietorship
Capital Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:2 Crore Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit
Director Minimum 2 Minimum 3 Minimum 1 - - -
Shareholder Minimum 2 Minimum 7 Minimum 1 - - -
Designated Partner/Parter - - - Minimum 2 Minimum 2 -
Taxation 30%(25% if turnover does not exceed 250 Crore) 30%(25% if turnover does not exceed 250 Crore) 30% 30% 30% As per Slab Rates
Statutory Audit Compulsory Compulsory Compulsory If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs Not Required Not Required
Investor Preference High Low Low Medium Very Low Very Low
Compliance Cost Mdeium High Low Low Low Low
Regulator Registrar of Companies SEBI/Registrar of Companies Registrar of Companies Registrar of Companies Registrar of Firms -
Time take for Registration 5-7 working days 5-7 working days 5-7 working days 20-25 working days 10-12 working days 5-7 working days