One Person Company

A One Person Company (OPC) is a distinctive business format that enables a single individual to start and manage a company with limited liability. This model was introduced to support individual entrepreneurs and small-scale enterprises. It functions similarly to a private limited company but requires only one shareholder and one director. With easypaytax, individuals can benefit from the advantages of a separate legal identity, reduced liability, and simplified compliance processes, making it an ideal structure for solo business owners who want professional recognition without the burden of excessive formalities.

An OPC is a form of private limited company that permits a single person to act as both the owner and the sole director. The concept evolved to overcome the restrictions of sole proprietorships, which were previously the most accessible structure for small businesses. Through easypaytax, entrepreneurs can register their company without needing a partner, unlike LLPs or private limited companies that require at least two individuals. This innovation makes it easier for solo founders to launch legally recognized businesses in India.

One Person Company - Incorporation Certificate [Sample]

An OPC, or One Person Company, is defined under Section 2(62) of the Companies Act, 2013. It is a type of private company owned and controlled by a single person who assumes the role of both shareholder and director. As per regulations, the name must end with “OPC Private Limited” or “OPC Pvt Ltd.” Earlier, forming a private company required two members and directors. With the introduction of OPC, a single entrepreneur can establish a company with the legal benefits of a corporate entity. easypaytax makes the incorporation process seamless and efficient for such businesses.

Benefits of One Person Company registration

Limited Liability:

An OPC ensures the promoter's personal assets remain protected. In the event of financial loss or liabilities, only the company’s assets are at risk not the individual’s personal property.

Credibility:

An OPC enjoys more credibility compared to traditional proprietorships. Registration through easypaytax includes issuance of a Certificate of Incorporation, making it legally recognized by banks and investors.

Continuous Existence:

The company continues to exist even if the sole owner is unable to continue due to any reason. It is transferred to a nominee director, ensuring business continuity.

Separate Legal Entity:

An OPC is distinct from its owner. It can purchase property, enter into contracts, and take on debt in its own name, shielding the promoter from personal liabilities.

NRIs can register OPC:

Following the 2021-22 Union Budget, Non-Resident Indians (NRIs) who have stayed in India for at least 120 days in the preceding financial year can register an OPC. easypaytax helps NRIs complete this process smoothly and compliantly.

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.

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One Person Company