One Person Company Registration
Starting at INR 6799 onwards
What is One Person Company Registration?
One Person Company Registration or popularly known as OPC Registration 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 Registration, unless otherwise expressly excluded in the Act or rules made thereunder. 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 One Person Company Registration?
Separate Legal Entity
A One Person Company Registration is a separate legal entity as distinct from its member, and is separate at law from its shareholder, directors, promoters etc. An OPC Registration has the capacity to own properties, incur debts and exercise a number of legal rights.
Transferability of Shares
Ownership of a One Person Company Registration 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 Registration 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 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. New OPC Registrations 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.
One Person Company Registration Requirement
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.
Documents Required For 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