The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company – who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation.
IndiaFilings is the market leader in company registration services in India, offering a variety of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration and Indian Subsidiary registration. The average time taken to complete a one person company registration is about 10 – 15 working days, subject to government processing time and client document submission. Get a free consultation for one person company registration and business setup in India by scheduling an appointment with an IndiaFilings Advisor.
Features of One Person Company
- Only One Member Required.
- A Type of Private Limited Company.
- Limited Liability Feature
Disadvantage of One Person Company
- One Director must be a Indian Resident.
- Statutory Compliance are high.
- Costing is high as compare to LLP/Firms.
Steps Taken for Register a Private Limited Company :-
Step 1. Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate).
Step 2. Search for the Company Name availability.
Step 3. Application for the Name availability.
Step 4. Drafting of Memorandum of Association (MOA) & Articles of Association (AOA).
Step 5. Filing of e-forms with RoC (Registrar of Companies).
Step 6. Payment of RoC Fees & Stamp Duty.
Step 7. Verification of documents / forms by RoC
Step 8. Issue of Certificate of Incorporation by RoC
- ID Proof and Address Proof for Director. as id proof PAN Card is Mandatory.
- latest utility bill (electric bill/telephone bill) or latest tax receipt/ownership deep of the property for the property to be used for registered office.
FAQ Series on the One Person Company
Yes, you can register your OPC at your residential address.b) How much cost for the OPC registration ?
Its costing nearby 12999/- INR. For the Customize Pricing Place a Request .c) How many days takes for the llp registration ?
its takes minimum 10 to 15 days or more depend on state roc department.
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