Overview

One Person Company means a company which has only one member. An OPC is incorporated as a private limited company, where there is only one member and prohibition in regard to invitation to the public for subscription of the securities of the company.

OPC is very easy to operate as only one shareholder is required to form an OPC who must be a natural person, citizen of India and resident of India. Also, it must have a minimum of one director. The Sole Shareholder can himself be the Sole Director. Also, there are certain limitations in forming OPC which every Entrepreneur must keep in mind. The first of them shall be that OPC must be converted into a Private Limited Company if it crosses an average annual turnover of Rs.2 crores. A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company. Legal Salah will help you incorporate a One Person Company.

Benefits of One Person Company

• There is no requirement to hold annual or Extra Ordinary Meeting. Only the resolution shall be communicated to the members. Only one Board Meeting is required to be done in each half of the calendar year.
• While doing business as a proprietorship firm, the personal assets of the proprietor can be at risk in the event of failure, but this is not the case for a One Person Private Limited Company, as the shareholder liability is limited to his shareholding. This means any loss or debts which is purely of business nature will not impact, personal savings or wealth of an entrepreneur
• Banking and financial institutions prefer to lend money to the company rather than proprietary firms. In most of the situations Banks insist the entrepreneurs to convert their firm into a Private Limited company before sanctioning funds.
• In an OPC, a director you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend money to your own company and earn interest. Directors’ remuneration, rent and interest are deductible expenses which reduces the profitability of the Company and ultimately brings down taxable income of your business.

Why Choose One Person Company Registration

• It is flexible and has limited liability.
• A greater capital contribution and greater stability.
• The possibility to grow big and expand

Required Documents

• Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property.
• Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English
• Copy of PAN card, Identity and Address Proof for DIN

Process

Due to Digitalization of registration process, it’s become easy to register the private limited company

Obtaining DSC & DIN

Application for Director Identification Number (DIN) issued by MCA for an existing Director or a person intending to be a director.

For obtaining DSC, self-attested copy of director's pan card & his address proof is required.

Application for Name Availability

Firstly You need to find your name has not been taken.

Secondly, you need to comply with the MCA guidelines. You can do so by ensuring that the name has a unique component and a descriptive component.

Company Registration Form & MoA & AoA Submission

Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property.

Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English

Affidavit from director and shareholders

Copy of PAN card, Identity and Address Proof for DIN for up to 3 directors

Company Incorporation Certificate

Once all the documents are approved by MCA , it will issue a incorpation certificate.

Apply for PAN & TAN & Bank Account

On the basis of incorporation certificate u can apply for the TAN , PAN & Bank.