One Person Company Registration
“One Person Company means a company which has only one member” who is naturally born Indian, who is also a resident of India.
OPC Registration as the name denotes is a company which can be run by a single person. According to the Companies Act of 2013, any person aspiring to become an entrepreneur can go ahead and start a new single ownership company also known as One Person Company.
One Person Company is ideally suited for Entrepreneurs and Proprietors who cannot avail the benefits of limited liability due to the non-availability of finding a second member or a shareholder.
The concept of One Person Company is a form of business enabling Entrepreneur(s) carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework.
The last name of the company ends with the word (OPC) Private Limited.
One Person Company Registration Deliverables
Basic requirements for One Person Company Registration
- Only one person as a member / Shareholder.
- One nominee for the Shareholder.
- DSC (Digital Signature Certificate)
Who is a Nominee in an OPC?
Nominee of the Shareholder - The Shareholder shall nominate another person who shall become the member and shall be entitled to all the shares along with the liabilities to bear of the company in case of death/incapacity of the original shareholder.
*Only an Indian citizen and resident of India shall be a nominee for the sole member of a One Person Company.
Advantages of OPC registration
Registering One Person Company gives you the following benefits:
- A separate legal entity
- Raising funds for an OPC is easy.
- More opportunities, limited liability
- Minimum Compliances
- The only owner
- Its Identity is distinct from that of its owners
- Its Identity is distinct from that of its owners
- Gives your business a social recognition and a legal structure.
- No loss of personal assets.
- The financial statements of OPC need not include cash flow statements.
- A company secretary is not required to sign the annual returns.
- Several provisions relating to meetings and quorum do not apply to OPC.
Types of OPC Companies
OPC limited by shares -
An OPC company shall have a minimum paid-up capital of 1 Lakh and there will be a restriction in the transfer of their shares. Also, it prohibits for Inviting the public to subscribe to the issue of shares in the company
OPC limited by guarantee and having a share capital -
An OPC limited by guarantee with share capital usually has the shareholders who act as guarantors and the liability of the members is limited. The guarantors contribute a nominal amount (typically very small) in the event of the winding-up of the company.
OPC limited by guarantee and having no share capital -
An OPC limited by guarantee without share capital does not usually have shareholders, but instead has members who act as guarantors.
OPC unlimited having share capital -
An unlimited OPC is a hybrid company incorporated with or without a share capital but where the legal liability of the members or shareholders is not limited.
OPC unlimited not having a share capital -
The liability of the members is limited to the amount unpaid, if any, on the shares held by them. The share capital of the company is divided into a number of shares. Unlimited Company not having Share Capital. The liability of the members is unlimited.
The Procedures to be followed for OPC(One Person Company) Registration (OPC registration process)
Read through the OPC registration process
- Apply for Digital Signature Certificate
- Apply for Director Identification Number
- Name Application Process
- Drafting of MOA (Memorandum of Association)
- Drafting of AOA (Articles of Association)
- Filing of Forms along with e-Form Spice+ with MCA
- Application of PAN
- Application of TAN
ConTerms & Restrictions of One Person Company:
- A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company.
- Minor cannot become a member or nominee of the One Person Company.
- An OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
- An OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except threshold limit (Paid-up share capital) is increased beyond Rs.50 Lakhs or the average annual turnover during the relevant period exceeds Rs.2 Crores, then the OPC has to invariably file forms with the ROC for conversion into Private or Public Company, within a period of six months on breaching the above threshold limits.
Why choose Aavana?
One person company registration can be a hassle unless you make the wise choice of choosing Aavana. Our honest and friendly staff will answer all your queries and take you through the registration process with ease. You can get your OPC company registered from the comforts of your home.
We speak quality over anything and believe in rendering the best services for all our clients. You can also outsource the accounting services of your one-person company to us while you take care of other important matters regarding the growth of your business.
Get solutions for all your Finance Regulatory Services for your OPC company today! We also provide a FREE consultation and online OPC registration as well.
Register One Person Company with Aavana at a nominal fee!
It takes about 15 working days to complete the OPC company registration. This also depends on the documents provided and also the approval from the Registrar of Companies.