One Person Company enables a person to start a company alone and also have the benefit of limited liability protection. The concept of One Person Company in India was introduced through the Companies Act, 2013. An OPC is like a hybrid of a Sole Proprietorship and a Private Limited Company. The primary benefits of a One Person Company (OPC) is that there can be only one member in OPC and the business has a separate legal identity from its promoter.
This ensures that the shareholder has limited liability and the business can continue even without the existence of the shareholder. One Person Company registration is more preferred by a person who wants to start a business on his/her own and get the complete benefits and protection of a private company. The compliance requirements of a One Person Company in India are also lesser than that of a Private Limited Company.
The process to incorporate an OPC in India includes obtaining the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the director, getting the name of the company approved from government authority, signing of Articles of Association (AoA) and Memorandum of Association (MoA) and creating and filing of documents with RoC along with the application for PAN & TAN. The entire process can take 15-20 days, subject the government processing of the application.
The documents needed to register One Person Company in India include the following:
- Copy of PAN Card of owner
- Passport size photograph of owner
- Copy of Aadhaar Card/ Voter Identity Card
- Copy of Rent agreement (If the property is rented)
- Electricity/ Water bill
- Copy of Property papers
- Landlord NOC (Format provided)