Online One Person Company Registration

Register a One Person Company in India

Choosing to start a One-Person Company (OPC) is like having the best of both worlds for entrepreneurs who want protection and their own business. It's a unique setup where one person gets to be the boss (director) and the owner (shareholder), blending the freedom of a solo venture with the legal safety net of a private limited company. In simpler terms, it means you're in charge, but your personal stuff is protected.

A One Person Company can be registered online through FINLEG at a cost-effective price without any hassle. FINLEG comply with all regulations established by the Ministry of Corporate Affairs and take care of all legal formalities. You will receive a Certificate of Incorporation (CoI), along with your PAN and TAN, after the company registration process has been completed and approved by regulatory. Post Incorporation you can easily open your bank account and start the business.

What is One Person Company?

Through the Companies Act , 2013, the idea of One Person Company in India was introduced to help entrepreneurs who are capable of starting a company themselves by enabling them to create a One person Company. One of the biggest benefits of a One-Person Company is that an OPC may have only one shareholder, while at least two members are required to create and retain a Private Limited Company or a Limited Liability Partnership. Similar to a Private Limited Company, a One Person Corporation is a separate legal entity from its founder, giving its sole shareholder limited liability immunity, while retaining business continuity and being easy to incorporate.

Although a One Person Corporation enables a single Individual to run a limited liability-protected corporate organization, an OPC does have some restrictions. For example, each One Person Company must appoint a replacement director in the Company's MOA and AOA-who will become the OPC 's owner in the event that the sole Director is disabled. A One-Person Company must also be transformed into a Private Limited Company if it reaches an annual turnover of Rs.2 crores and, like all forms of companies, must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. It is therefore important that the Entrepreneur examines carefully the features of an OPC.

Advantages of Private Limited Company

A One Person Company is preferred business structure due to following reasons-

• Distinct Identity - An OPC is recognized as a separate legal entity, distinct from its owner. This legal recognition enhances the credibility of the business and facilitates contracts, agreements, and legal transactions in the company's name.
• Limited Liability - One of the major benefits is limited liability. The individual's personal assets are protected, and their liability is restricted to the extent of the capital invested in the company. This shields personal assets from business debts and obligations.
• Gives more credibility and Authenticity - A partnership or sole proprietorship is not registered with Ministry of corporate affairs so no database can be found for them. Contrary to above, Operating as an OPC can enhance the professional image of the business. It portrays a formalized and structured approach, potentially building trust and confidence among clients, customers, and business partners.
• Ease in raising funds - While OPCs cannot issue equity to the public, they can attract funding from banks, financial institutions, and investors. This provides a source of capital for business expansion and development.
• Existence that continues without interruption - The death or incapacitation of the sole owner doesn't necessarily lead to the closure of the company. The OPC structure allows for the nomination of a successor, ensuring continuity and smooth transition of the business.
• Ease of Compliance - OPCs have simpler compliance requirements compared to larger corporate structures. Annual filings and other regulatory obligations are more straightforward, making it easier for entrepreneurs to manage the legal aspects of their business.

Checklist for Registration of One Person Company in India

The Companies Act of 2013 requires us to ensure that the checklist's requirements are met-

• Single Person: Only a single person who is a natural Indian citizen can kickstart an OPC. This means no companies or LLPs-just an individual with Indian citizenship.
• Indian Resident: That single person who is registering the OPC and will be director and shareholder should have lived in India for at least 182 days during the previous calendar year. It's all about being a resident.
• Minimum Contribution of Capital: An One Person Limited Company must have a minimum authorised capital of Rs. One Lakhs but there is no restriction to minimum contribution/paid up capital.
• Nominee: When you're setting up your OPC, you've got to name a nominee. This person steps in as a member if, for any reason, you can't continue (like in the unfortunate events of demise or incapacity).
• Restriction to certain kind of business: You cannot register an OPC for financial businesses like banking, insurance, or investments.
• Conversion to Private Limited Company: If your OPC's paid-up share capital hits over 50 lakhs or its yearly turnover goes above 2 Crores, it's time to convert into a private limited company mandatorily to meet the regulatory compliances of big companies.

Minimum Documents required for registration of One Person Company in India

The registration of a One Person Company (OPC) in India involves the submission of various documents. The specific requirements may vary, but generally, the following minimum documents are required:

Director's Documents

• PAN Card: Copy of the PAN card of the proposed director.
• ID Proof: A copy of the Aadhar card, passport, voter ID, or driver's license for identity verification.
• Passport-sized Photograph: Recent passport-sized photographs of the director.

Address Proof

• Utility Bill: A copy of the latest utility bill (electricity, water, gas, or telephone bill) that should not be older than two months.
• Rent Agreement: If the premises are rented, a copy of the rent agreement along with a No Objection Certificate (NOC) from the landlord.

Registered Office Proof

• Ownership Proof: In case the premises are owned, documents like the sale deed or property tax receipt are required.
• NOC: If the premises are owned by someone else, a No Objection Certificate (NOC) and a copy of their utility bill are needed.

Nominee's Documents

• PAN Card: Copy of the PAN card of the nominee.
• ID Proof: A copy of the Aadhar card, passport, voter ID, or driver's license for identity verification.
• Passport-sized Photograph: Recent passport-sized photographs of the nominee.

Other Documents

• Memorandum of Association (MoA): A document defining the company's objectives and its relation to the outside world.
• Articles of Association (AoA): A document specifying the company's internal rules and regulations.
• Declaration: A declaration by the proposed director confirming compliance with all the requirements and eligibility criteria for an OPC.

Step-by-Step Guide to Creating an One Person Company in India

The registration process of your one person company is a complicated process with numerous requirements. However, as long as you have FINLEG, you need not be concerned because our professionals are able to assist you with each step of the one person company registration process.

• Step 1 - Obtain Digital Signature(DSC).
• Step 2 - Apply for Director Identification Number (DIN).
• Step 3 - Reserve Unique name for Company by applying in MCA Portal.
• Step 4 - Draft MOA and AOA.
• Step 5 - File form with MCA for OPC registration.
• Step 6 - Apply for PAN and TAN.
• Step 7 - ROC issues Certificate of Incorporation with a PAN and TAN.
• Step 8 - Open a bank account and start your own new business.

Frequently Asked Questions (FAQs)