One Person Company (OPC)

A One Person Company is a separate legal entity from its shareholder or director or promoter, providing protection in the form of limited liability to its sole shareholder, while having continuity of business and being easy to register like a Private Limited Company. One of the biggest benefits of a One Person Company (OPC) is that anyone can incorporate an OPC with only one member, as compared to a Private Limited Company or a Limited Liability Partnership (LLP) where a minimum of two members are required for incorporating and maintaining the same.It is also possible to convert the one person company into a private limited company or limited liability partnership firm as and when required.

The requirement of minimum paid-up capital has now been removed by the MCA under Companies Act, 2013. Now you can incorporate a one person company without any paid up or invested capital but a minimum amount of Rupees 1 Lakh is required as an authorized capital. It is also suggested to subscribe a minimum number of shares as mentioned in the memorandum, i.e. at least 1 share for the registration. It is also important to note that if the OPC exceeds a turnover of over Rs 2 crores or has a paid-up capital more than Rs 50 lakhs, it must be converted into a private or public limited company within 6 months. Proposed by Union Budget 2021-22 An OPC can voluntarily convert itself into any kind of company at any time without meeting any of the criteria’s as to paid up share capital and average annual turnover. The amendment will be effective from 01st April 2021. Proposed by Union Budget 2021-22 A Small company means a private company which fulfils the following conditions: • Paid up Share Capital does not exceed ₹ 2 Crore and • Turnover does not exceed ₹ 20 Crore The amendment will be effective from 01st April 2021.

An applicant can file the maximum of 2 names with their order of preference under RUN form on MCA portal along with the details of suitable activity code, nature of business to be carried out. The applicant should comply with the provisions of the Act or regulations. The registrar will generally ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfil other requirements.

Any individual above the age of 18 years can be appointed as director in the company after getting the Digital Signature Certificate (DSC) & Director Identification Number (DIN). Even a foreign national can also become a director in a one person company; as such there is no specific criteria prescribed in terms of his/her citizenship or residency. Now-a-days DIN gets allotted at the time of company registration subject to a limit of maximum 3 DIN. For obtaining more than 3 DIN, an application can be filed separately in form DIR-3 with MCA.

From incorporation to regular annual filing, there are multiple e-forms prescribed under MCA which are required to be digitally signed & submitted to the Ministry of Corporate Affairs. Digital Signatures can be used for filing purposes only such as MCA Filing for Company Incorporation, Annual Filing etc, It can also be used for GST Registration & Returns filings, Income Tax filings etc.MCA has authorised certain authorities to issue Digital Signatures Certificates in the form of a token. DSC can be issued in class-3 digital signature certificate.

. Yes, it is possible to use a residential address for a one person company registration to receive official communication from authorities such as MCA, Income Tax, GST department etc.

No, a One Person Company registration process is completely online. So, none of the promoters/directors are required to visit physically at any place. All required documents & information can be sent through e-mail or uploaded on our portal for filing. We only require self-attested scanned copies of all documents & relevant information along with your authorisation to submit an application before authority on your behalf.All the forms are filed online on the MCA web portal, application & documents are digitally signed & submitted beforthe authority for approval.

Apart from other statutory compliances like GST, Income Tax, etc., A Private limited company must comply below without any delay. • File Commencement of Business (COB) e-form INC 20A within 180 days of incorporation. • Appointment of a Statutory Auditor (Practicing Chartered accountant) for Auditing Books of accounts and issue audited Annual Financial Statement. • Filling of ROC Annual Forms • Filing of Director e-KYC

Following are the prerequisites or minimum eligible conditions to register an OPC in India: • The individual setting up the OPC must be an Indian citizen and Indian resident • Companies and Limited Liability Partnerships are not allowed to form a one person company, • At least one director should be appointed, who shall be an Indian resident, it is important to note that shareholder & director can be the same person in an OPC. • An individual who is above the age of 18 years and Indian resident must be appointed as Nominee on registration • An authorized capital of Rs. 1 Lakh • A place of business must be provided as the registered office address of OPC. • KYC documents such as copy of PAN card & Aadhaar card • E-mail id & mobile no.

A One Person Company is exempted from rigid legal compliances of general meeting, board meetings, quorums, voting inclusion of cash flow statements in financial statements, mandatory rotation of an auditor, except in particular situations, such as if there is more than one director, then the Board meeting must take place. OPC is also exempted from transacting business through postal ballot. Moreover, appointing a company secretary is not mandatory for an OPC. The director of the company can sign the annual return of an OPC if no company secretary has been appointed.

Following are the list of entities which qualify as a “Startup” for the purpose of Government schemes • Private Limited Company (PLC) • Registered Partnership Firm • Limited Liability Partnership (LLC) One person company is generally registered as a private limited company & Being a private limited company, one person company can also apply to get the start-up India registration.

Registering a one person company usually takes 7 to 8 working days after submission of all required documents & information. Once the registration process completes, you can start your business immediately.

A person who is a minimum of 18 years of age and is an Indian resident can become a nominee in an OPC. Additionally, the nominee must provide his consent to the company for his/ her appointment.