With the latest and tremendous changes in business and making business setup easy in India, One Person Company is a unique concept introduced by the Ministry of Corporate Affairs in order to encourage small traders and entrepreneurs. One of the major advantages of an OPC is that there can be only one member in an OPC, whereas in case of a Private Limited Company or a Limited Liability Partnership minimum two persons are required. Similarly, as in case of a company, a natural person who is a citizen of India shall be eligible for registering a One Person Company, with the requisite that the person should be a resident of India.
One Person Company is defined in the Companies Act 2013 as a company which has only one member. A single shareholder holds 100 percent shareholding. One person can form a company without any additional shareholder, and if the member is willing to add shareholders, all he needs to do is some procedural compliances to convert the OPC into a regular Private Limited Company and file it before MCA.
Minimum Requirements for Starting a One Person Company
- Minimum one person
- Minimum capital shall be ₹1,00,000
- DIN for the person who is proposed to be the owner of the company
- Digital Signature (DSC) for one person
- Consent from the owner & nominee
- Proof of registered address (like light bill / rent agreement etc.)
- NOC from the owner of premises
Advantages of One Person Company Registration
Quick Start
To start an OPC is a quick mechanism and can be done within a period of 6-7 days. It provides a quick start from a legal procedural point of view. You can get an OPC registered with the Ministry of Corporate Affairs very quickly.
Distinct Legal Entity
Like any company, whether Private Limited or a Public Company, a One Person Company has a distinct legal entity from its members which is capable of doing everything that an entrepreneur would do. In many aspects it has similar features to that of a Private Limited Company.
Compliance Requirements
An OPC will also be required to comply with the provisions as applicable to Private Companies. However, an OPC still enjoys a number of exemptions and therefore has a lesser compliance burden as compared to a Private Limited Company.
Legal Status to a Business
A One Person Company not only gives entrepreneurs the legal status to the business but also social recognition, as it enjoys the same status as that of Private Limited Companies. This helps the entrepreneur attract quality workforce along with designations like Directorship, which cannot be used by Partnership firms or Limited Liability firms.
Easy Access to Loans from Banks
Generally banks prefer to lend loans to a One Person Company rather than Proprietary Firms or Partnership Firms. In certain circumstances it is advisable to many entrepreneurs to start up business as a One Person Company rather than a Proprietary Firm or Partnership Firm.
The Only Owner
Being the sole owner is the best advantage of incorporating an OPC, which in turn makes decision making of the business quicker without much unnecessary intervention, making functioning of business more smooth.
Documents Required for One Person Company Registration
Scanned copies of the following documents have to be provided.
ID Proof (Director’s Details)
- PAN card copy with self attestation
- Voter ID copy / Passport copy / Driving license copy with self attestation
- Latest passport size photo in JPG
- Email ID, Cell No.
Registered Office Details (If Rented)
- A copy of rental agreement or lease agreement is required
- Copy of latest electricity bill or property tax receipt or water tax receipt
- Copy of No Objection Certificate from the owner of the property (we shall share the format)
Registered Office Details (If Owned)
- A copy of Sale Deed and electricity bill is sufficient
What We Offer in One Person Company Registration
- Name Approval
- Certificate of Incorporation
- AOA & MOA
- PAN Registration
- TAN Registration
- Digital Signature
- DIN of Director
- Invoice Format
FAQ – One Person Company Registration
What is a One Person Company?
An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.
How many directors can there be in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
What are the mandatory requirements of an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
Who can register an OPC?
Only Indian residents can register an OPC, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.
How many days are required for One Person Company Registration?
A N Bhutada & CO can help in OPC registration in fast track mode with a dedicated team. It takes approx. 7-15 working days for registration.
Can I use my residential address for OPC Registration?
Yes. A residential address can be used for OPC registration. Most start-ups use the same and change it later on.
Do I need to be physically present for OPC registration?
No. The process followed by us for OPC registration is completely online. You just need to send scanned documents over email.
Compare Your Options
| Private Limited Company | Limited Liability Partnership | One Person Company | Partnership | Sole Proprietorship | |
|---|---|---|---|---|---|
| Recommended For | Start-ups and growing companies | Professional services firms | Those who want to be the only owner | Regular business | Small & midsize business |
| Investment | Very easy to accommodate investment & bank loan | Possible, but unlikely | Possible, but severely unlikely | Possible to take loan from bank | Moderate |
| Limited Liability Protection | Yes | Yes | Yes | No | No |
| Tax Advantages | Few benefits | Few benefits | Few benefits | Minimal | Minimal |
| Perpetual Existence | Yes | Yes | Yes | No | No |
| Statutory Compliances | Moderate | Low | Low | Minimal | Minimal |
| Persons Required | Minimum 2 | Minimum 2 | Max 1 | Minimum 2 | Max 1 |
More Questions? Seek Help of an Expert — Call us at: +91 80555 66789 or Email us: office@anbca.com
