One Person Company

A One Person Company (OPC) is a unique business structure that allows a single individual to form and operate a company, enjoying the benefits of limited liability. This concept, introduced to support solo entrepreneurs and small businesses, provides a legal framework similar to that of a private limited company while requiring only one director and shareholder. OPCs offer advantages such as separate legal entity status, limited liability protection, and ease of compliance. This structure enables individuals to establish and manage their ventures with reduced regulatory burden and personal risk, fostering entrepreneurship and innovation.

A one-person corporation (OPC) is a type of private limited business that can be founded with only one person serving as both director and shareholder. The necessity for a one-person company arose as a result of the limits of sole proprietorship firms, which are the most common kind of business registration for small enterprises in India. Unlike a private limited company or an LLP, which require at least two persons, entrepreneurs can now incorporate their business with only one person.

One Person Company - Incorporation Certificate [Sample]

One Person Company, or "OPC," is a type of private limited company that is registered under the Companies Act of 2013. It can be registered with a single individual who serves as both the director and shareholder of the company. OPC companies use "opc private limited" or "opc pvt ltd" at the end of their business names since they are privately held by a single individual.

Previously, a private limited corporation required at least two directors and two members. A single individual could not start a private firm. However, a new concept of OPC was created under Section 2(62) of the Company's Act 2013, which allows a single individual to incorporate a private limited company.

Benefits of One Person Company registration

Limited Liability:

It helps protect the personal assets of the owners with limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and cannot be seized by banks or departments.

Credibility:

As OPC is a private limited company, it has higher credibility than traditional proprietorship firms. Unlike sole proprietorship, the Certificate of Incorporation is issued to a one-person company.

Continuous Existence:

Unlike a proprietorship, where the firm comes to an end with any mishap with the proprietor, a one-person company continues to exist as it is passed on to the nominee director.

Separate Legal Entity:

An OPC is a private legal entity in its own right, and hence the business owners aren’t subject to any personal liability. The company can acquire assets and incur debts on its name.

NRIs can register OPC:

As per the amendment in the Union Budget 2021-22, one-person one-person companies can be incorporated by non-resident Indians. A person who has stayed in India for a minimum period of 120 days immediately preceding the financial year can register an OPC.

Documents required for One Person Company registration

For incorporating your business as a One Person Company, you need to provide proper identity and address proof. The documents are required to be submitted to the Registrar of Companies.

1. Passport size photographs
2. Copy of Aadhar Card or Voter ID
3. Copy of PAN Card
4. Copy of Bank Statement (not older than two months)
5. Valid address proof of office which can be the latest electricity or any other utility bill.
6. If it is a rented office, then No Objection Certificate is required from the owner of the property.

Minimum requirements for OPC registration

As per the Companies Act 2013, there are minimum requirements that need to be met for one-person company incorporation online.

1. Unique business name
2. There is no minimum capital requirement
3. A nominee must be appointed during incorporation
4. Address proof of office

Process of One Person Company Registration

Step 1. Application for Digital Signature Certificate (DSC)

One-person business incorporation is a completely digital procedure, hence a Digital Signature Certificate is required. The individual who will function as a director and subscriber to the company’s memorandum must apply for a DSC from one of the recognized agencies. Obtaining a DSC is an entirely online process that may be completed within 24 hours. This method includes three basic verifications: document verification, video verification, and phone verification.

Step 2. Application for the name approval

Name application for one person company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.

Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.

Step 3. Filing of SPICe Form (INC-32)

Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:

Details of the company
Details of the member and subscriber
Application for Director Identification Number (DIN)
Application for PAN and TAN
Declaration by director and subscriber
Declaration & certification by professional

Step 4. Filing of e-MoA (INC-33) and e-AoA (INC-34)

SPICe e-MoA and e-AoA are related forms that must be completed when submitting an application for business registration.
A Memorandum of Association (MOA) is specified under Section 2(56) of the Companies Act 2013. It is the basis upon which the business is based. It describes the company’s constitution, powers, and objectives.
The Companies Act’s Section 2(5) defines the Articles of Association (AOA). It includes all of the rules and regulations governing the company’s management.

Step 5. Issuance of PAN, TAN and Incorporation Certificate

After approval of the above-mentioned documents from the Ministry of Corporate Affairs, a PAN, TAN, & Certificate of Incorporation will be issued by the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.

Easypaytax.com

One Person Company