One person and one nominee is required. Nominee is the person who takes control on death of sole founder
Whatever is the capital amount of your company, you should invest the same within 2 months of incorporation
Any person can form only one OPC as per Companies Act, further only individual can form a OPC
Under OPC, one cannot raise funding nor can issue ESOPs to hire top talents. Further, maximum turnover under this company cannot exceed Rs.2 Cr upon which the OPC is mandatory converted into Private Limited Company
Filing Application form
Obtaining DSC and DPIN for director of OPC
Verification and Name Approval
Drafting of necessary documents and their Submission with the Concerned Authority
COI and Delivery of Documents
PAN, TAN Card and Bank Account of the Company Registered
Copy of Pan Card of Directors
Copy of Adhaar/ Election Card of Directors
Passport Size Photographs
Copy of ownership/rented property
Landlord Noc (if Rented)
The concept of One Person Company 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 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. Since, no intervention from any third party is seen, it makes it more beneficial. So, if you want to start up your own business, you don’t have to worry about all the complex and tedious processes.
One Person Companies are helping tremendously in increasing the overall economy of India. More and more Entrepreneurs are coming up and setting up their businesses.
- Single Promoter – One Person Company is the only type of corporate entity that can be started and operated by a single promoter with limited liability protection in India. A corporate form of legal entity in One Person Company ensures that the business has perpetual existence and easy ownership transferability.
- Uninterrupted Existence – A company has ‘perpetual succession’, meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
- Easy Transferability – Ownership of the business can be easily transferred in a one person company by transferring shares. The signing, filing and transfer of share transfer form and share certificates is sufficient to transfer ownership of a company. In a one person company, the ownership can be transferred by altering the shareholding, directorship and nominee director information.
- Borrowing Capacity – Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns. However, a one person company cannot issue different types of equity security, as it can only be owned by one person at all times.
- Owning Property – A company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., Further, the nominee director cannot claim any ownership of the company while serving as a nominee director.
- Short and Simple
- Not offensive/illegal
- Not use ‘British India’
Starting a One person Company business in India is a very simple job. To start this company, you need to have two person, one will be the sole owner and another is the nominee who shall take care of the company in case of death of the sole owner/director. Further, apart from this, you need to have basic documents like PAN and ID proof to proceed with the registration. Once registration of OPC is done, you can start the business immediately.
The total time taken to register the One Person Company (OPC) in India is around 10 to 15 days. However, make sure you fulfil all the requirement for faster processing of the application.
No foreign individual/Non-resident Indian (NRI) can start the One Person Company (OPC) in India. As per the law, only a resident Individual person can start a One Person Company (OPC) in India.
Taxation under One Person Company is very similar to the Private Limited Company under which tax is imposed on profits earned by the company.
This is different from the proprietorship under which slab rate of the sole proprietor is applicable. Further, proprietors can avail the benefit of presumptive taxation but One Person Company cannot.
Yes, you can convert your existing business into One person Company (OPC). But since it is a complex procedure, we need to talk to you directly. Please drop your query in the contact form so that we can call you and explain you the things.
If you are running a sole proprietorship firm and want to convert it into One Person Company, then we need to convert it according to the Income Tax Act, 1961 so that you can save your tax on the conversion process.
As per income tax act, conversion of sole proprietorship into Private Limited Company is exempt from tax subject to the prescribed conditions.
One Person Company (OPC) registration is the first step to start your business in India. It provides you basic identity and basic documentation on the basis of which you can do multiple activities like opening bank account, taking space on lease etc. Here are some major advantages of One Person Company (OPC) Registration:
- It helps you to protect your personal assets and keep your liabilities limited.
- It provides separate legal entity status which makes it easier for you to have loan funding.
- One Person Company is registered form of business better than sole proprietorship.
Few of the disadvantages of One Person Company (OPC) registration are as follows:
- A One Person Company (OPC) cannot raise funding by selling its shares and hence not preferred for startups.
- It increases the yearly compliance cost because audit and other compliances are mandatory irrespective of turnover.
- It cannot be converted into private limited company voluntarily before two years from the date of incorporation.
A private Limited Company is the sole choice for startups or two persons who are planning to start the company in India. On the other hand, a One Person Company (OPC) is the substitution for sole proprietorship business in India. Let’s see the difference:
One Person Company (OPC) – A Single person can register a One Person Company (OPC).A OPC cannot raise funding by selling its stake and hence not eligible for startups. OPC can have only one shareholder but can have more than one director.It can be converted into private limited company only after two years.
Private Limited Company – At least two persons are required to register a private Limited Company. It is a perfect form of business for startups in India. Private Limited Company is the most chosen form of business. Minimum of two shareholders and two directors are needed to start the private company. It can be converted into Public company but not into a One Person Company (OPC).
- Sign on annual returns.
- Hold Annual General Meetings and Board Meetings.
- Sign on Financial Statements.
- Option to dispense with the requirement of holding an AGM.
- Power of Tribunal to call meetings of members.
- Calling of extraordinary general meeting.
- Notice of meeting.
- Statement to be annexed to notice.
- Quorum for meetings.
- Chairman of meetings.
- Restriction on voting rights.
- Voting by show of hands.
- Voting through electronic means.
- Demand for poll.
- Postal ballot.
- Circulation of members’ resolution.