One Person Company ( OPC ) Registration
Starting at INR 4499 onwards
What is One Person Company (OPC) Company?
One Person Company (OPC) is a form of business that allows a sole entrepreneur to operate as a corporate identity with reaping benefits as that of a Private Limited Company. The Concept of One Person Company was introduced under the Company’s Act 2013 by the Ministry of Corporate Affairs to provide leverage to individual entrepreneurs who couldn’t form a Company form of business earlier. An OPC can be registered only as a Private Company which means that all the provisions applicable to a Private Company will be applicable to an OPC, unless otherwise expressly excluded in the Act or rules made there under. An OPC registration allows only one Shareholder/Member and fifteen directors maximum. Apart from the limited liability protection to its shareholder/member, features like ability to raise equity funds, separate legal entity status and perpetual existence make it almost as equivalent to a private limited company. Banks and Financial Institutions prefer to provide funding to a registered company rather than partnership firms or proprietary concerns. They are also subjected to easy transferability.
Why Register a One Person Company?
Separate Legal Entity
A One Person Company (OPC) is a separate legal entity as distinct from its member, and is separate at law from its shareholder,directors, promoters etc. An OPC has the capacity to own properties, incur debts and exercise a number of legal rights.
Transferability of Shares
Ownership of a One Person Company are easily transferable by a shareholder to any other person. The Transfer process involves filing and signing a share transfer form and handing over the buyer of the shares along with share certificate.
Perpetual Succession
A One Person Company (OPC) exercise “Perpetual Succession”; which means that the company’s life is not determined by the longevity of its member, shareholder, promoter, directors, employees or anyone else. If the shareholder dies of a One Person Company (OPC) dies or resigns , only the shares in the company will be transferred to new a person.
Borrowing Capacity
A One Person Company ( OPC ) can avail better scope for borrowing funds. Banking institutions and Venture Capital Firms prefer to render financial assistance to an OPC rather than general partnership firms, proprietary concerns or any other form of unregistered business. Newly formed OPC can also reap the benefits of easy borrowing.
Limited Liability
Limited Liability protects the personal assets of founder, directors or shareholder of the company in case of debt or insolvency. The liability of the member in respect of the company’s debts is limited only till the investment of capital in the company and not their personal assets.
Suing Capacity
A One Person Company ( OPC ) can file legal proceedings or a suit in a court of law exactly like an individual person. An OPC being an independent legal entity can sue and also be sued in its own name.
What are the Requirements for One Person Company Registration?
DIRECTORS
For a One Person Company Registration / OPC Registration, a company must have at least one director. The maximum number of directors a One Person Company ( OPC ) can register is 15.
REGISTERED OFFICE
The registered office of the One Person Company ( OPC ) must be in India. It need not to be an owned space as even a rented space can be used as long as a NoC is obtained from the owner of the property.
CAPITAL REQUIREMENTS
There is no minimum Capital Requirement for a One Person Company ( OPC ). However, it is suggested to register with a minimum capital of INR 1 Lakh in order to avoid multiple capital increase.
What are the documents required for a One Person Company Registration?
Passport Sized Photo
Passport sized Photos of the Director
Identity proof
Driving License/Voter ID Card/Passport
Address Proof
Latest Bank Statement/Utility Bill
Director Information
KYC Details Of Director
Business Address Proof
Latest Bank Statement/Utility Bill
No Objection Certificate
NOC From the Property Owner
Rental Agreement
Rental Deed of the Business Premises
Property Documents
For self owned Property
How much Time does One Person Company Registration takes?
Name Reservation Application
One Day
Acquire Digital Signature Certificate
One Day
Drafting of Incorporation Documents
Two – Three Days
Filing for Incorporation INC32 (SPICe From)
One Day
What are the Deliverables?
Certificate Of Incorporation
A Certificate of Incorporation is a legal document issued by the Ministry of Corporate Affairs and Government of India after the Company Registration. It serves as the proof of legal existence of Private Limited Company.
Directors Identification Number
DIN is a unique Director Identification Number allotted by the Central Government to any individual intending to become a Director a company.It is an 8-digit unique identification number which has validity for lifetime.
Digital Signature
A Digital Signature (DSC) is an equivalent of a handwritten signature or stamped seal, but is way more secured and safe to use. You would receive a class 2 Digital Signature for all the Directors of the Company with a validity of 2 Years.
MOA/AOA
Memorandum of Association consists of the objectives of the organization. Articles of Association are reports that contains the purpose, obligations and responsibilities of its owners, directors, promoters or shareholders.
Company PAN
Registered businesses like Pvt Ltd Company needs to obtain a PAN Card in the name of the registered business. The PAN number needs to be quoted in every financial transaction of the business.
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Company TAN
Tax Deduction Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).
How to select the Perfect Name for your One Person Company Registration?
The name of your company represents the ideologies, vision and working of the company and its founders. Hence choosing the right name for your company is highly essential as you don’t want to be stuck with a wrong or bad name that doesn’t go with the product/service and vision of your company. The name must be relevant, attractive and meaningful. However there are few other factors that should be kept in consideration while choosing the name for your business. Here are some crucial points to remember.
SHORT & SIMPLE
Your Company name should be short simple and quick to remember. It should also be easy to pronounce. You don’t want to have a name which is misspelt every time someone looks for it.
UNIQUE
The chosen name mustn’t be the same or identical to an already existing company or a trademark in any manner. Names identical to already existing companies are usually rejected by the MCA during Company Registration process.
MEANINGFUL
Your Company name should be short simple and quick to remember. It should also be easy to pronounce. You don’t want to have a name which is misspelt every time someone looks for it.
NO ILLEGAL/OFFENSIVE NAMES
The name of the company should be as per the law. It can’t be abusive, unethical, restricted (click here to see) or against any customs, beliefs, religion, ethnicity or country.
ADD BUSINESS TYPE
Adding the type of business at the end of the desired company name helps people to figure out the products/services of your company and establishes a brand image in the relevant domain.
WITH SUFFIX
The name of the company must end with the suffix “Private Ltd” in a case of a Private limited company, “OPC Private Limited” in case of a One Person Company and “LLP” in case of a Limited Liability Partnership.
Private Limited Company vs. One Person Company vs. Limited Liability Partnership
Features
- Registration Law
- Entity Status
- Members/Owners Liability Clause
- Directors
- Foreign Ownership
- Transfer-ability
- Perpetual Succession
- Annual Statutory Meetings
Private Limited Company
- Companies Act, 2013
- Separate legal entity
- Limited Liability
- Minimum 2 Directors
- Allowed
- Ownership can be transferred.
- Yes
- Periodic Board and General Meetings are mandatory.
One Person Company
- Companies Act, 2013
- Separate legal entity
- Limited Liability
- Minimum 1 Director
- Not Allowed
- Ownership can be transferred.
- Yes
- Not Required
Limited Liability Partnership
- Limited Liability Partnership Act, 2008.
- Separate legal entity
- Limited Liability
- Minimum 2 Partners
- Allowed with prior approval of RBI
- Ownership can be transferred.
- Yes
- Not Required
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