One Person Company Registration
What is OPC registration?
One Person Company in India is a new concept that has been introduced with the Company’s Act 2013. One Person Company in India is incorporated by a single person. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business then he or she should only opt for a sole proprietorship.
According to Section 2 (62) of the Company’s Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company.
A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.
Documents Required For OPC Registration
PAN Card
Passport
Voters Identity Card
Ration Card
Driving License
Electricity Bill
Telephone Bill
Aadhaar Card
Bank Statement
Sale Deed Copy
Lease / Rent Agreement
MOA Subscriber Sheet
AOA Subscriber Sheet
Proprietorship vs Limited Liability Partnership (LLP) vs Company
Features | Proprietorship | Partnership | LLP | Company |
Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
Ownership | · Sole Ownership | · Min 2 Partners · Max 50 Partners | · Designated Partners | · Min 2 Directors · Min 2 Shareholders · Max 15 Directors · Max 200 Shareholders For One Person Company · 1 Director · 1 Nominee Director |
Registration Time | 7-9 working days | |||
Promoter Liability | Unlimited Liability | Limited Liability | ||
Documentation | · MSME · GST Registration | · Partnership Deed | · LLP Deed · Incorporation Certificate | · MOA · AOA · Incorporation Certificate |
Governance | – | Under Partnership Act | LLP Act, 2008 | Under Companies Act,2013 |
Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
Compliance Requirements | · Income tax filing if turnover is more than Rs.2.5 lakhs | · ITR 5 | · Form 11 · Form 8 · ITR 5 | · ITR 6 · MCA filing · Auditor’sappointment |
OPC Registration FAQ’s
1. What is the role of a Nominee in an OPC?
A nominee is an individual who becomes a member of the company in case of the promoter’s death or incapacitation.
2. What is the authorized capital fee?
Authorized Capital of a Company is the number of shares a company can issue to the shareholders. A Company is required to pay the Government an authorized capital fee to issue shares.
3. How to speed up the incorporation process?
Ensure that the name you choose is unique and you have all the required documents before the process of incorporation for speedy incorporation.
4. What is a dormant company?
If the annual compliances are not met with the required ones, it becomes a Dormant Company and can be struck off after some time. A Struck company can be revived for a period of up to 20 years.
5. What is DSC?
The DSC establishes the identity of the sender or the signee electronically while filing the document online. The MCA mandates that the Directors sign some of the application documents using their Digital Signature.
6. What is the Director Identification Number?
It is the Unique Identification Number that is assigned to all existing and proposed Directors of a Company. All proposed Directors must have Director Identification Number. The DIN never expires and a person can have only one DIN.
7. Is a Private Limited Company better than OPC?
OPC is a Company that has a separate existence and is owned by one single member. One person happens to be a mixture of proprietorship and company forms of business.
8. Is audit compulsory for OPC?
For an OPC statutory audit is mandatory. A company needs to appoint a CA as the auditor of the Company. The auditor needs to verify the books of accounts and issue a Statutory Audit report.
9. Is GST mandatory for OPC?
GST registration for a Person Company is necessary if the supply of goods or services is in another state irrespective of annual turnover.
10. Can OPC raise funds?
An OPC can raise funds through venture capital, financial institutions. An OPC can also raise funds by converting into a Private Limited Company.
11. What is the difference between sole proprietorships and OPC?
In a Person Company, a single person runs a company limited by shares whereas a Sole Proprietorship means an entity that is run by one individual, and the owner and business are considered as the same entity.
12. Is it necessary for the OPCs to conduct an annual general meeting?
Except for OPCs, all entities are required to conduct an Annual General Meeting every year.
