Register a One Person Company

Overview of One Person Company Registration

A One Person Company is a company that has only one person as a member. OPC was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company.

An OPC is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.

As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and start-ups.

Benefits of One Person Company

• One Person Can Start The BusinessUnder OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
• Complete Control By The IndividualThe control remains in the hand of one person only.
• Limited LiabilityIn case of One Person Company, the member of OPC has limited liability.
• Separate Legal Entity From Its MemberBeing a company, OPC has a separate legal existence from its member.
• Easy Compliance And Tax FlexibilityAn individual has to follow easy compliance and avails the benefit of tax availability too.
• Benefits For Small Scale IndustriesOPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.

What are the Eligibility Criteria for Registering One Person Company?

• A natural person can form OPC who is a resident of India in the preceding calendar year.
• Only 1 member can form an OPC.
• The Name should be unique and should not be similar to any other existing company and trademark.
• An individual cannot incorporate more than 1 OPC or
• An individual cannot be the nominee of more than 1 OPC.
• There must be a least 1 director.
• In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
• One Person Company must include in its name (OPC) Private Limited.
• Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

What Documents are Required for One Person Company Registration?

Below-mentioned documents are required for OPC Registration:-

For DSC Application

• Passport size photo of the applicant.
• Copy of Id and Address Proof.
• Email Id and Phone number
• Specimen Signature

Documents Required For SPICe+ Form

• Identity proof
• Address proof & Identity proof and of the nominee and the subscriber. Note-For Residential proof, the applicant can provide any of the following documents:-• Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)

  • Copy of Rent agreement and No-objection Certificate from the property owner.

  • If the property is owned-Copy of the sale deed.

• Memorandum of Association and Articles of Association
• Declaration by the Subscribers and Directors
• Proof of Office Address
• Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
• Nominee’s Consent in Form INC-3
• Disclosure of Director’s Interest and any other document (if required).

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