One person company registration in India

What is one person company registration in India?

One Person Company Registration

Basically OPC means One Person Company which is also a private limited company with 1 member. All the OPC are monitered by Companies Act, 2013. 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. Appointing Nominee is mandatory incase of incorporating One person Company.

Advantages of one person company india incorporation

  1. It exists as separate legal entity and perpetual existence even after death of member.
  2. The liability of member is limited upto the extent of unpaid share capital.
  3. It helps to improve credibility of the business.

Documents required for one person company incorporating business

  1. Identity and Address proof of Director and Nominee.
    • Aadhar/ Voter ID/ Driving License
    • PAN card
    • Latest Bank Statement.
  2. Proof of address for business
    • Rental Agreement/ Utility Bills – if rented
    • Property Tax receipt – if owned
  3. Incase of NRI passport to be submitted.
  4. Description of Objects and articles of the business.

Process of one person company incoporation

Step 1 Search for the availbility of name and reserve it through Reserve Unique Name (RUN) service in MCA portal. If the name is already registered then it wont be alloted again.
Step 2 Once name got approved then apply Digital signature and file DIR 3 form for filing DIN number.
Step 3 File SPICe form, MOA and AOA forms with required details.
Step 4 After filing SPICe form then upload it along with the prescribed form.

General FAQ – One Person Company Registration

1. Is Nominee is Mandatory ?
Yes, without Nominee OPC can not be incorporated.
2. Are there any compulsory conversion limits to private limited ?
One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores or has a paid-up capital above Rs.50 lakhs 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.
3. What is minimum authorized capital required to incorporate OPC ?
One Person Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the OPC. There is no requirement to show proof of capital invested during the incorporation process.
4. Are there any relaxations for OPC ?
  • Hold Annual General Meetings and Board Meetings.
  • Sign financial statements.
  • Option to dispense with the requirement of holding an Annual General Meeting (AGM).
  • Power of the Tribunal to call meetings of members.
  • Calling of extraordinary general meetings.
  • Notice of the meeting.
  • Statement to be annexed to the notice.
  • Quorum for meetings.
  • Chairman of meetings.
  • Proxies.
  • Restriction on voting rights.
  • Voting by a show of hands.
  • Voting through electronic means.
  • Demand for a poll.
  • Postal ballot.
  • Circulation of members’ resolution.