One Person Company (OPC)

Overview

A one-person company (OPC) in India is one of the simplest sorts of corporate organizations to carry on. it’s been given a various allowance in compliance requirements under the Companies Act. It’s a kind of a company where the compliance necessity is lesser than a private company. OPC registration is a very easy and low price process.

OPC Registration discloses new business chances for sole proprietors and entrepreneurs who also desire to enjoy the benefits of limited liability and a separate legal entity also. OPC does away with the hassles of finding a suitable partner for starting a business as a registered entity. It needs only one person who will behave as a member, shareholder, and director. A person, who registers one-person company, is not eligible to incorporate more than one one-person company.

Comparison between OPC & Sole Proprietorship

Basis For Comparison	OPC	Sole Proprietorship
Law Applicable	Companies Act 2013	Shop and Establishment Act
Separate legal entity	Yes	No
Minimum share capital	No requirement for minimum share capital. If capital exceeds 50 lakhs, opc gets converted to Pvt. Ltd.	No requirement for minimum share capital
Members required	Minimum one Maximum one	Only one
Directors required	Minimum one Maximum 15	NA
Board meeting	One meeting in each half of the year. The gap between the two meetings must be at least 90 days	NA
Statutory Audit	Compulsory	No obligation for Statutory Audit until gross turnover exceeds 100 lakhs
Annual Filing	Financial Statements and Annual returns to be filed with registrar	NA
Liability	Limited	Unlimited
Transferability of shares	Can be made by altering MOA	NA
Foreign Direct Investment	Not eligible for FDI	Not allowed
Suitable to which type	Individuals whose capital requirements are 50 lakhs and turnover is less than 2 crs.	Small traders and merchants.
Company Name	Should end with (OPC) Pvt. Ltd./ (OPC) Ltd.	Any name can be given.

Our Process

Estimated time to complete the process – 11-13 working days

Step 1

Initial Discussion & collection of Basic information

Step 2

Apply to Name Availability of the proposed OPC Copmany

Step 3

Collection & Verification of Documents

Step 4

Apply for Digital Signature Certificate (DSC)

Step 5

Drafting MOA ,AOA & other Documents

Step 6

Submission of Forms With the Roc along with Din Application

Step 7

Issuance of Certificate of Incorporation

Step 8

Application for PAN & TAN

Step 9

Dispatch of deliverables.

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 7000
- - 1 DSC (Digital Signature) For Director
  - DIN for Director
  - OPC Name Approval
  - MOA & AOA Drafting
  - PAN & TAN Card of OPC
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
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Premium
- ₹ 10000
- - 1 DSC (Digital Signature) For Director
  - DIN for Director
  - OPC Name Approval
  - MOA & AOA Drafting
  - PAN & TAN Card of OPC
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - MSME Registration
  - 3 Month GST Return Filing
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Ultimate
- ₹ 20000
- - 1 DSC (Digital Signature) For Director
  - DIN for Director
  - OPC Name Approval
  - MOA & AOA Drafting
  - PAN & TAN Card of OPC
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp duty & Registration Charges
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - MSME Registration
  - 1 Year GST Return Filing
  - Income Tax Return Filing
- Purchase Now

In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7500 will be applicable.

In case of incorporation in Punjab, an additional stamp duty of Rs.10, 000 will be applicable.

In case of Kerala, an additional stamp duty of Rs.3000 will be applicable

Benefits

No Minimum Capital

There is No minimum capital necessary to make a one Person Company. They are frequently registered even with Rs. 10,000 as total Authorized Share capital.

Limited Liability

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

Minimum compliances

For the aim of Annual filing and other compliances, One Person Company is treated as a private Ltd. . However, it's exempted from many compliances. It doesn't need to hold AGM per annum.

Builds Credibility

All the knowledge concerning the one-person company is made available in an exceedingly public database. This feature makes it easy to validate the existence of the business that eventually assists in improving business credibility.

Tax flexibility and savings

Director can lend money to own company and earn interest. Directors’ remuneration, rent and interest which are deductible expenses which reduces the profitability of the Company and ultimately brings down taxable income of your business.

Documents Required

The director of the OPC should submit the scanned transcripts/ copies of the following documents mandatory for OPC registration

1. PAN card or Passport

2. Passport, for NRIs and Foreign Nationals

3. Scanned transcript of Driver's License or Voter’s ID

4. Updated gas or electricity invoice/Bank account Statement/Mobile or landline phone invoice

5. Specimen signature or impression

6. passport-sized photo

Note: The first 3 documents should be self-attested by the OPC director. All the documents for a foreign national or an NRI must be notarized (if residing in India or a non-Commonwealth country at present) or apostilled (if living in a Commonwealth country at present).

Documents Necessary For The Registered Office

1. Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or Electricity Invoice)

2. Scanned transcript of Rental Agreement written in the English language

3. Scanned transcript of N-O or No-objection Certificate from the concerned property landowner

4. Scanned transcript of Property or Sale Deed printed in English (if the property is owned)

Note: Your office space which is registered needs to be a commercial area; however, it can be your house of residence as well

Note: All the Documents in case of Foreign Director should be additionally complied as follows:

Notarized (if residing in commonwealth countries)

Notarized & Apostiled (if residing in country which is signatory to Hague convention)

Notarized & Consularised (If not covered in above categories)

Clear All Your Doubts !

What is the minimum number of a director to make OPC?

As the name suggests, a One Person Company is often started with one director.

Who may be a nominee during a One Person Company?

A nominee is a person who in the event of death or disability of the subscriber of the One Person Company shall assume his position. Memorandum of Association of a One Person Company will mandatorily prescribe the name of the person.

Can I appoint my wife as my nominee for my One Person Company?

Yes. Anyone may be appointed as a nominee, provided he or she holds an accurate PAN in his or her name.

Can a nominee of a One Person Company be changed after incorporating the company?

Yes. A nominee is often changed at any time with due intimation to the Registrar.

Is there any threshold limit for an OPC to mandatorily get converted into either a private or public company?

In case the paid-up share capital of an OPC exceeds 50 lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has got to mandatorily convert itself into a private or public company.

Can NRIs or Foreigners hold shares of a private Limited Company?

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a private limited company subject to Foreign Direct Investment (FDI) Guidelines.

How to intimate ROC that the OPC has exceeded the edge limits and needs conversion into a private or public company?

The OPC shall inform ROC in form INC-5 if the edge limit is exceeded and is required to be converted into a private or public company.

Can I be a member of more than one OPC?

No, a person can be a member of just one OPC.

What is the Director identification number (DIN)?

Director identification number may be a unique identification number assigned to all or any existing and proposed Directors of a company. all present or proposed Directors must possess a Director identification number. The Director identification number never expires and an individual can have just one director identification number.

Is Foreign Direct Investment allowed for One Person Company?

No, FDI isn't allowed for One Person Company. you'll consider incorporating a private limited company if you desire to bring FDI.

Can OPC become a member of another private Limited company?

Yes, the Act has not made any restriction for a One Person Company to become a member of another Private limited company.

Whether an OPC is often converted to a Public limited company and vice versa?

One person company can easily be converted to a Public or Private limited company.

Do you need to be present in-person to incorporate a One Person Company in India?

No, you'll not need to be present for registering an OPC. OPC incorporation may be a completely online process.

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