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Registration of One Person Company in India
Online One-Person Company Registration
Online Registration of One Person Company (OPC) is now easy with Tax Robo's simple OPC Ltd Company Registration Process. Register today!
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What is One Person Company?
According to the Companies Act, 2013, a One Person Company (OPC) is a distinct legal entity that allows a single individual to establish and operate a company with limited liability. Key features of an OPC as per the Companies Act, 2013 include:
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Single Member: An OPC can have only one shareholder, who is also the sole director of the company. This individual exercises full control over the company's affairs.
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Limited Liability: Similar to other corporate entities, the liability of the owner in an OPC is limited to the extent of the company's assets. This means that the owner's personal assets are protected from the debts and liabilities of the business.
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Nominee Director: To ensure continuity in case of the owner's death or incapacity, an OPC must appoint a nominee director who will take over the management of the company in such situations. The nominee director is nominated by the sole member of the OPC.
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Separate Legal Entity: An OPC is considered a separate legal entity from its owner, which means it can enter into contracts, own property, and engage in business activities in its own name.
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Conversion: An OPC can be converted into a private limited company after reaching certain thresholds of turnover or paid-up capital, allowing for scalability and growth.
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Less Compliance: Compared to other corporate structures like private limited companies, OPCs have fewer compliance requirements, making them an attractive option for small businesses and startups.
Important Legal Registration Required for OPC
Why Choose an OPC for Company Registration?
Choosing a One Person Company (OPC) for company registration offers several distinct advantages for solo entrepreneurs and small business owners:
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Limited Liability: One of the primary reasons to opt for an OPC is the limited liability protection it provides. The owner's personal assets are safeguarded from the liabilities of the business, offering peace of mind and financial security.
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Single Ownership: With an OPC, a single individual can establish and operate a company, retaining full control and autonomy over business decisions and operations. This makes it an ideal choice for solo entrepreneurs who want to pursue their business ventures independently.
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Separate Legal Entity: An OPC is considered a separate legal entity from its owner, which means it can enter into contracts, own property, and engage in business activities in its own name. This enhances credibility and professionalism, especially when dealing with clients, vendors, and partners.
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Minimal Compliance Requirements: OPCs have fewer compliance requirements compared to other corporate structures like private limited companies. This reduces administrative burdens and regulatory complexities, allowing the owner to focus on business growth and development.
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Nominee Director Provision: To ensure continuity in case of the owner's death or incapacitation, an OPC must appoint a nominee director. This provides a mechanism for seamless transition and succession planning, ensuring the continuity of the business.
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Scalability: While an OPC is initially designed for solo entrepreneurs, it can be converted into a private limited company after reaching certain thresholds of turnover or paid-up capital. This allows for scalability and expansion as the business grows.
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Tax Benefits: OPCs enjoy the same tax benefits as other corporate entities, including deductions and exemptions available under the Income Tax Act. This can result in tax savings for the owner, especially when compared to sole proprietorships.
Advantage Of One Person Company Registration
✓ Limited Liability: Yes, unlike a sole proprietorship, One Person Company offers protection against debts, to the amount of initial investment by the owner, in case of losses.
✓ Company and owner being separate entities: Since the company and the owner are separate legal entities, the owner is not personally liable to compensate for the losses incurred by the company.
✓ No need to issue financial statements: It is mandatory for every company in India to report financial statements such as balance sheets, cash flow statements, profits, losses, etc. However, with One Person Company, you can escape the headaches of filing performance details.
✓ No minimum paid-up share capital: You can start One Person Company with practically zero initial investment.
✓ No need to hold Annual General Meetings: As per Government directives, it is essential for companies to hold annual general meetings, at least once every 15 months. One Person company lets you walk off without holding annual general meetings. A simple resolution signed by a single director and entered into a minutes book covers the need of AGMs.
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Provision for a nominee to succeed as owner: In case the owner of a sole proprietorship dies, the Business dies with him (if ownership is not forwarded to a successor in the last will). One Person Company lets you appoint a nominee who will succeed the Business, in the event of the owner's death. A nominee however has zero power until the real owner is proven incapable of running the Business.
How to Incorporation of One Person Company in India
Here are the easy steps one can follow to register One Person Company. Since the entire process is now online, you don't need to be physically present for any formalities. One Person Company can be formulated in just 10-12 working days.
Step 1
Gather all necessary documents such as PAN Card, Proof of Address (Passport, Driver's license / Voter ID / Aadhar), and Proof of Residence (Bank Statement/Utility Bill, etc.)
Step 2
Apply for your Private Limited company's name approval under the Ministry of Corporate Affairs with up to 2 names of your choice. In case they are rejected, you can apply once more with 2 suitable names.
Step 3
Obtain DSC (Digital Signature Certificate) and DIN (Director Identification Number)
Step 4
Fill up the SPICE (INC-32) form for incorporation application with the Ministry of Corporate Affairs (MCA) SPICE stands for Simplified Proforma for Incorporating Company Electronically.
Step 5
File for PAN, TAN, and open Bank Account. Once you get an Incorporation certificate, your One Person Company becomes officially active. Now you need to acquire the Company's PAN, and TAN, and open a Bank Account for trading activities.
Basic Package
₹6999 .00
* All Exclusive
- MOA & AOA Drafting
- Digital Signature Certificate 2 Years Validity
- Name Approval
- PAN & TAN
- Incorporation Fees Authorised Capital Of Rs.10 Lakhs
- GST Consulting
- Incorporation Certificate
- Appoint First Auditor of the Company
- Free Bank Account Opening
- Free 3 Months "Accounts Robo" ERP Software.
Family Auditor
₹13999 .00
* All Exclusive
- MOA & AOA Drafting
- Digital Signature Certificate 2 Years Validity
- Name Approval
- PAN & TAN
- Incorporation Fees Authorised Capital Of Rs.10 Lakhs
- GST Registration
- PF & ESI Registration
- Incorporation Certificate
- Share Certificate
- Appoint First Auditor of the Company
- Free Bank Account Opening
- Free GST Monthly Return 1 Month
- Free Tax Consulting
- Free 3 Months "Accounts Robo" ERP Software.
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How to Choose a Unique Name for Company Registration as per MCA Guidance
Familiarize yourself with the MCA guidelines for company names. These guidelines specify rules and restrictions regarding the use of certain words, phrases, symbols, and formats for company names. Some common guidelines include:
- Avoiding offensive or obscene words.
- Not using words that imply government affiliation without proper authorization.
- Ensuring that the proposed name is not identical or too similar to existing company names or trademarks.
- Including a unique component that distinguishes the name from others in the same industry.
Generate a list of potential names that align with your business vision, values, and offerings. Consider using keywords related to your industry, unique brand elements, or combinations of words that reflect your company's identity.
Use the MCA's online portal to check the availability of your chosen name. The portal provides a search feature that allows you to verify if the name is already registered by another company. Additionally, consider conducting a domain name search to ensure the availability of a corresponding website domain.
Verify that the proposed name complies with all MCA guidelines and restrictions. Ensure that it does not contain prohibited words or phrases, does not infringe on existing trademarks, and is not misleading or deceptive in any way.
Incorporate a unique element into the name to make it distinctive and memorable. This could include a brand-specific word, acronym, location, or industry-specific term that sets your company apart from others.
Avoid using generic or overly descriptive terms that do not differentiate your company from competitors. Instead, opt for a name that is original and creative, yet relevant to your business niche.
If you're unsure about the legality or availability of a particular name, consider seeking legal advice from a qualified professional. A legal expert can help you navigate the complexities of company naming and ensure compliance with all regulatory requirements.
Knowledge of the Business
✓ Do you have previous experience in the same Business? how many years?
✓ Product analysis with the questions of whether the product is under any restricted sales in India eg. Cement, Steel.
Marketing Strategy
✓ Marketing strategy is available with target customers.
✓ Pricing of products and margin available in the product.
Growth of the Business
✓ Growth of the Business in India for the next 5 to 10 years.
✓ Feasibility report of the Business and products.
✓ Business plans and projected Financial Product for 5 years.
Funds – Working Capital
✓ Sufficient working capital required for running the Business for a minimum period of 3 months. The funds can be own funds or Bank funds.
✓ How many months of Investment in the Business have required, returns on investments, and working capital funds available for fixed expense months?
One Person Company Registration Process Online in India - Simple Steps
Step 1
Obtain Dsc for Director And Apply Name Approval (After Check Company Name Availability)
Step 2
Incorporation Of Documents (Draft Sent To You For Confirmation)
Step 3
File Spice + Forms
Step 4
Get Incorporation Certificate, Pan, TAN & Bank Accounts
Documents Required For Incorporation Of A One Person Company
ID Proof
Scanned copy of PAN Card, Voter ID, Passport , Driving License
Registered Office Proof
No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property) / Registry Proof or House Tax Receipt (in case of owned property)
Address Proof
Latest Bank statement/ Utility bill in the name of director which should not be older than two months
Photo
Latest passport size photograph
Compliance After Incorporation Of One Person Company
Statutory Obligations
✓ File GST return every month without delay
✓ PF & ESI return filing
✓ TDS Payments & Return filings
✓ Advance Tax payments
✓ File Income Tax return by every year before due date
Compliances
✓ GST registration
✓ PF & ESI Registration if applicable
✓ Profession Tax registration
✓ Import & Export Code registration
✓ STPI Registration / SEZ registration
✓ Secretarial compliance required for passing resolutions, Change in Management, entering contracts, loan obligations etc
Accounts & Operations
✓ Open a Bank account with one Private Bank and one scheduled Bank
✓ Get one accounting software with GST facility
Performance
✓ Review Financial Products performance by every 3 months
✓ Compare the budget amount with actual Financial Products results