One Person Company - efilingg.com

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One Person Company Registration process

What is One Person Company?

The new concept of ‘One Person Company (OPC) has been launched by the Companies Act, 2013. It provides a new whole idea of the opportunity to those who are eager to start their own businesses which have only one member.

Incorporation of One Person Company was published as a good rectification over the sole proprietorship. Only the residents of India who were born here are eligible for the One Person Company Registration. An OPC is perfect for anyone who wants to run a business by himself or herself, think to have effective control over the overall operations of the business, and works in a structured framework.

One Person Company is one in which best one individual is the member. It can be registered with a minimum capital of just Rs 1 Lakh. Earlier, if the paid capital of One Person Company exceeds fifty lakh rupees or its average annual turnover during the relevant period exceeds 2 crore rupees, it will cease to be entitled to continue as a One Person Company. Now, the Government has removed the limit of paid-up share capital and turnover for the conversion of OPC which is mostly done by the startups.

Benefits of One Person Company :

In India, OPC is a Private Limited Company, which is the most popular and leading business structure in the business sector. Various Govt. Agencies, Corporate Customers, and vendors prefer to trust and deal with Private Limited Company rather than proprietorship firms.

The various startups need to buy loans to establish their business and take things on credit. In the case of normal partnerships, the property and personal savings would be at risk because a business is not able to repay its loans. At the same time, in one person’s private limited company, the personal assets of the director are safe, only the investment gets lost.

The OPC business helps the startup entrepreneurs to test their business models, and build up a marketable product, to approach venture capitalists for funding and easily convert OPC into a multi shareholder Private Limited company.

Requirements for Private Limited Company

Indian Directors

Identity Proof

Aadhar card/Passport / Voter Identity Card / Driving license.

Residential Proof

Bank Statement/Mobile Bill/Telephone Bill/ Electricity Bill

PAN Card

Mandatory

Registered Office Proof

Electricity bill/ Gas bill

Company Registration Process:

First and foremost, the director and nominee has to apply for Digital Signature and DIN, DIN refers to the Director PIN number issued by MCA and a digital signature is an online signature used for signing up. If the director has all these documents, then move forward by skipping this step.

There should be two different names for your company that are provided to MCA for selection. The names should be ideally unique and describe the business.

The LLP-RUN which is Limited Liability Partnership – Reserve Unique Name needs to register for the reservation of the name of the proposed LLP.

After the approval of the name, we need to draft Memorandum of association and Articles of Associate. Both are filled up with MCA with the subscription statement.

To apply for Company Incorporation, Spice+ Form has to be filed and submitted on the MCA portal. It generally takes 4-5 days to form a One Person Company and get an incorporation certificate. This certificate includes a CIN number and it is proof that the company has been incorporated.

Now it’s time to apply for TAN and PAN which are received within 7 working days.

You have to submit Company’s MOA, AOA, Incorporation Certificate, and PAN in bank to open your company’s current account.

FAQs

Common Questions About Our Consulting Services

Who can be registered with an OPC?

OPC company registration can be done only by Resident Person. The term “Resident Person” here means a person who has stayed in India for a period of not less than 182 days during the immediately preceding financial year. Criteria of 180 days have been reduced to 120 days to allow Non-Resident Indians to operate OPCs in India and enjoy the unlimited benefits of a One Person Company (OPC).

How much capital is required to the Incorporation of One Person Company?

The capital to start your own OPC is around 1 Lakh, but no need to be paid-up. So, this means you actually don’t need any investment to begin your business.

What will be the tax benefits available to an OPC?

There are no tax benefits available as the tax rate is flat 30%,.

Do I need an office location to start my own Company?

No not at all, you can show your rented home or own residential address as the registered office address of the company.

Who is the nominee in OPC?

Business Startup

Certifications

Registrations

Tax & Compliance

Licenses

NGO Registration