One Person Company (OPC)

What Is A One Person Company?

 

One Person Company in India is a new concept that has been introduced with the Company's Act 2013. One person company (OPC) in India is one of the easiest forms of corporate entities to manage. An OPC has features of a Company and the benefits of the sole proprietorship. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company. OPC registration is very easy and cheap process. OPC does away the hassles of finding the right partner for starting a business as the registered entity. OPC Registration opens up new business opportunities for sole proprietors and entrepreneurs who also wish to enjoy the advantages of limited liability, and a separate legal entity as well. A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person.To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. One person company is a type of Private Limited Company.

 

Choose Your Package

Silver

₹ 6899/-

  • 1 Digital Signature Certificates
  • 1 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 1 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus

Gold

₹ 16599/-

  • 1 Digital Signature Certificates
  • 1 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 1 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing

Platinum

₹ 29599/-

  • 1 Digital Signature Certificates
  • 1 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 1 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing
  • 1st Income Tax filing upto turnover of Rs. 50 Lakhs
  • 1st Annual Filing upto turnover of Rs. 50 Lakhs
  • Form ADT 1 (Auditor Appointment in AGM)
  • Form AOC -4 (Form for filing financial statement and other documents with the Registrar)
  • Form MGT -7 (Form for filing annual return by a company)
  • 1 DIR - 3 KYC
  • Accounting Book Keeping up to 100 Transactions

 

Documents Required To Register A One Person Company

 

 

1. Passport size Photograph of Director & Nominee 

 

2. PAN and Aadhar card of Director & Nominee 

 

3. ID proof of Director & Nominee  (Driving License/Voter ID/Passport)

 

4. Address Proof of Director & Nominee  (Bank statement/Electricity Bill/Telephone Bill) not older than 1.5 months having name of the respective Director and Shareholder.

 

5. Registered Office Address Proof (Electricity Bill/Water Bill/Gas Bill or any other utility bill) not older than 1.5 months

 

Specific Requirements:

 

1. A One Person Company must have a registered office in India. Documents like bank statement or electricity bill should be recent.

 

2. A utility bill, rent agreement or sale deed and an  NOC (Non-Objection Certificate) from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.

 

 

 

Steps To Register Your One Person Company

 

 

1. Experienced and dedicated personnel assigned for engagement.

 

2. Collection of required documents along with a simple checklist.

 

3. Verification of the Documents as required for Incorporation by our incorporation experts.

 

4. Process of application of Digital Signature Certificate.

 

5. Name approval application submitted to MCA.

 

6. Drafting of the essential documents by our Assigned Personnel based on the MCA approved name.

 

7. Signing of documents by the Director ,Shareholder and Nominee.

 

8. Submission of documents along with Incorporation Form to MCA for approval.

 

9. Once MCA approves, it will grant Certificate of Incorporation and the company will be Incorporated.

 

 

Advantages Of One Person Company

 

 

1. An OPC enjoys the benefit of Separate Legal Identity which clearly states that assets and liabilities of the business are not the assets and liabilities of the Directors or shareholders.

 

2. There is No minimum capital is required to form a One Person Company.  It can be registered even with Rs. 1000 as total Authorized Share capital.

 

3. A shareholder or the owner of a Company has a limited liability towards the company. His/her liability is limited up to the shares subscribed by him/her.

 

4. The compliance requirements are lesser in comparison to the Private Limited Company. Compliances like holding General and Board Meeting, etc. are not applicable to OPC. However, Board Meeting must be held if more than one director is on Board.

 

5. As One Person Company is a separate legal entity it is easy to raise funds through banks, venture capitals, angel investors, incubators, etc. One Person Companies get loans easily than a proprietorship firm. It is very easy to obtain funds.

 

6. OPC can take legal action against another and also other person can take legal action against company separate from directors, shareholders & promoters.

 

7. The OPC has a perpetual existence and thus it keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its member or shareholder. It continues as a legal person until it is legally dissolved. A person needs to be appointed as a Nominee. On the death of the member, the nominee will run the company in the member's place and by appointing the new Nominee in his/her place.

 

8. The OPCs are easier to manage as they can be established as well as run by one single person. The decision-making is easy and quick. Thus managing a company is easy as there won't be any conflict or delay within the company.

 

 

Compliances Required By One Person Company

 

 

 

Statutory Auditor Appointment 

 

All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. The auditor also needs to be appointed within 15 days from the conclusion of AGM. Therefore, the due date for ROC Form ADT 1 would be 14th October every year.

 

 

Declaration of Commencement of Business 

 

The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA within 180 days of incorporation.

 

 

Accounting 

 

Every One Person Company shall maintain proper books of accounts which shall represent an accurate and fair value of the state of affairs of the company. Accounting is necessary for the statutory audit. Annual filing and Income tax return filing which is mandatory.

 

 

Statutory Audit 

 

Every One Person Company registered under the Companies Act, 2013, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year.

 

 

MAT Audit

 

It is mandatory for the One Person Company to get their accounts audited under MAT i.e. Minimum Alternate Tax. The objective of the introduction of MAT was to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay any tax due to various tax concessions and incentives provided under the Income-tax Law.

 

 

Income Tax Filing

 

Companies registered in India must file income tax return each year in Form ITR-6. The due date for the same is 30th September each year.

 

 

Annual Return

 

Companies registered in India must file MCA annual return each year in forms AOC-4 and MGT-7. AOC 4 must be filed within 180 days from the close of financial year. As One Person Company does not require to hold AGM, yet the due date for filing Form MGT 7 shall be 60 days from the completion of the 6 months from the end of financial year.

 

 

DIR 3 KYC

 

The DIN KYC procedure must be completed each year for the directors of the company.

 

 

 

Role of Nominee In One Person Company?

 

 

A nominee in an OPC is the person designated by the sole promoter of the company to be his successor.  At the time of incorporation of OPC, the sole member of OPC is required to appoint another person as his nominee and his name shall have to be featured in the Memorandum of Association of the OPC and a nominee consent form must be filed with the MCA while incorporating a One Person Company, . In case of death or incapacitation, the Nominee will take over. The nominee must be an Indian Citizen and a resident who is not a minor.

 

 

Withdrawal of Consent

 

The Nominee can withdraw his/her consent, In this case, the sole member is required to nominate another member as a Nominee within 15 days of the notice of the withdrawal. The Nomination of the new personnel must be intimated to the company through a written consent in Form INC 3. In turn, the Company is required to file the notice of withdrawal of consent along with the intimation of the new nominee with the Registrar in Form INC 4.

 

 

Change in Nominee 

 

The Sole member of the One Person Company can change the Nominee by providing notice in writing to the company. The new nominee must consent to the nomination form in INC 3. The Company must file the notice of the change and the consent of the nominee with the registrar with the applicable fee, within 30 days of receiving the intimation of change.

 

 

Nominee Appointment

 

In case if the nominee becomes in charge of the company due to cessation of the original member's term owing to the death or incapacity of the latter, the new member must appoint a new nominee as a replacement.

 

 

Penalty 

 

If a One Person Company or an officer of any such company is not compliant with the mentioned regulations the entity might incur penalties as high as Rs.10,000. Further, for each day of default, the penalty will be increased by a fine of Rs,1000.

 

 

 

Starting Your Own One Person Company With UpriseLegal

 

 

With our experienced and skilled personnel, We at UpriseLegal makes process of registering your Private Limited Company very smooth and helps you in each and every step of company formation. We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow! You may get in touch with our compliance manager on 9173512402 or email us at [email protected] for free consultation.