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.
What is the process of One Person Company registration?
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.
What documents are required for One Person Company registration in India?
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)
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Frequently Asked Questions
Does One Person Company conduct Board Meeting like Private Limited Company?
No, a One Person Company does not required to hold Board meeting like Private Limited Company, but it has to hold Board Meeting once in every half year calendar. The time difference between the two Board Meetings cannot be less than 90 days.
What happens in case of death of member of the One Person Company?
If the member dies, the nominee undertakes the affairs of the company and within 15 days of time, the company has to intimate the Registrar of Companies by filing Form INC-4 with prescribed fee.
Can a One Person Company converted into Private Limited Company?
Yes, an OPC can be converted into a Private Limited Company, if the company fulfils the convertibility criteria. The company can be converted by submitting requisite forms with the authority.
How can I change a nominee for my company?
A nominee of the One Person Company can be changed with the proper intimation and filing of necessary forms with Registrar of Companies.
Who can be the nominee for a One Person Company?
A nominee for a One Person Company can be anyone like your spouse, father, mother, daughter, brothers, sisters etc. However, the person must hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as the nominee for One Person Company.
Can a person be a member in more than one OPC?
No, a person is eligible to be a member in just one OPC.
How much capital is required to start a One Person Company?
To start a One Person Company (OPC), you must have a minimum paid-up capital of Rs. 1 lakh.
Who cannot register a One Person Company in India?
A minor, foreign citizen, NRI, a person incapacitated to contract cannot register a One Person Company.
Who can be the member of a One Person Company in India?
Any individual or organisation can be the member of an OPC in India.
How many people are required to start a One Person Company?
For One Person Company registration, there must be one nominee who will act as shareholder as well as director of the company.