One Person Company is a new type of business entity that allows a single entrepreneur to operate a corporate entity with limited liability protection. while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate. every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company - who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation.
Anyone can register a Private Limited Company with Minimum Paid Up Capital for Private Limited is Rs. 100000. Governing body is Ministry Of Corporate Affairs.
Eligibility For OPC Registration
Only a natural person who is a citizen of India and resident in India is eligible to incorporate an OPC
(*A Resident of India is a person who has stayed in India for at least 182 days in the preceding 1 year.)
Benefits
- Only one member is required
- Separate Legal Entity
- Uninterrupted Existence
- Unaffected by death of member or change in ownership
- Easy to set up and maintain comparatively.
- Limits the liabilities of its members
- Minimal Paperwork is required.
- Borrowing Capacity
Documents Required For OPC Registration
Identity Proof of Director
- Copy of PAN Card of directors of Indian nationals
- Proof for Registered Office in INDIA
- Copy of Property papers (If owned property)
- Copy of Rent agreement (If rented property)
- Electricity/Water bill not older than 2 months
Landlord NOC
Passport size photo of Director
Identity proof of Nominee
- Copy of PAN Card of Nominee of Indian nationals
- Copy of Adhaar Card of Nominee of Indian nationals
- Copy of Voter Id Card of Nominee of Indian nationals
Address proof of Nominee
- Bank Statement
- Driving License
- Pan Card
- Aadhar Card
- Passport
- Electricity bill not older than 2 months
Address proof of Nominee
- Copy of Property papers (If owned property)
- Copy of Rent agreement (If rented property)
- Electricity/Water bill not older than 2 months
- Landlord NOC
Procedure for Incorporation of One Person Company
Application of DSC & DIN
First of all, The Director have to apply for Digital signature and DIN. Digital signature is an online signature used for filing and DIN refer to Directors Identifucation Number issued by MCA. If the directors alreay have DSC and DIN, Then this step can be skipped.
Name Approval
You need to provide your company name to MCA in Form RUN. Names provided should ideally be unique and suggestive of company business. Name is available for 20 days.
MOA & AOA submission
Once name is approved, one needs to draft Memorandum of association and articles of Associate. Both MOA and AOA are filed in Form SPICe with the MCA with the subscription statement within 20 days from the date of receiving of approval letter from MCA.
Get Incorporation Certificate
It typically takes 15-25 days to form a One Person Company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number
Apply for PAN, TAN and Bank account
Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days.