One person company is a new form of business registration was introduced in India through Companies Act 2013, totally a new concept comes with many versatile features and added advantages for entrepreneurship.
The person who is looking to establish the idea with seamless limited liability functions and sole management authority can simply look for OPC registration.
Section 2(62) defines OPC as a Company which has only one person as a member. In alternate language, there is only one person playing the role of director, manager, analyst, planner, and coordinator for business and its management, all in the jurisdiction's eye.
As this comes with many advantages for and to the entrepreneur, here’s the top reason to consider registering yourself as one person company in India.
Benefits of One Person Company Registration:
- Independent Existence: The one of the major advantages that come with this is that in the eye of law, a company is a person, having a common seal, and perpetual succession. It gets the authority to exercise all the functions of an incorporated person.
- Limited Liability: The person is restricted to raise unlimited liability as the law implies that the liability of the member will be up to the extent of his share in the company. Hence, consider it as a good perspective.
- Separate Property: An OPC has its own separate entity due to having separate legal entities and functions. So, OPC will become the owner of its assets, and the member will not have any right in the assets of the company.
- Tax Flexibility And Savings: Directors’ remuneration, rent and interest are a deductible expense which reduce the profitability of the Company and ultimately brings down taxable income of your business.
- Complete Control Of The Company: Due to the limit of having one person as a member and owner of the OPC company, hence, that person has complete control of the company inside as well as outside.
If you’re thinking of enrolling for One Person Company in India, the following are the documents required mentioned.
Required Documents for Obtaining OPC Certificate:
- DIN (Director Identification number) of director
- DSC (Digital Signature) of director and shareholder
- Self attested PAN Card copy of director and shareholder and nominee
- Passport size color photo of director/nominee in JPEG format
- Occupation and educational qualification, place of birth and nationality
Also Read: Know Complete Required Document for online OPC Registration
Step by Step Procedure of One Person Company Registration
TaxWink gives you benefits in the form of fast, secured, and affordable one person company registration. Here’s the steps you have to follow for obtaining OPC certificate:-
- Verification of documents provided by you
- Application for Name Approval (online RUN WEB Application on MCA Portal)
- Obtaining DSC (Class-2) and DIN as required above. However, in new companies DIN can be obtained within SPICe + facility
- Incorporation of company along with filing of e-MOA and e-AOA
- Providing you Certificate of Incorporation
- Filing of Commencement of business certificate after 180 days (separately chargeable)
What you will get? DIN for 1 director, One DSC, Name approval of company- RUN WEB FORM/ SPICe+, Memorandum of Association/ Article of Association of Company (e-MOA/e-AOA), and much more.
One Person Company Frequently Asked Questions
What is the minimum capital requirement in One Person Company?
One Person Company can be registered with “Nil” paid up capital.
Who can become a director in One Person Company?
Any natural person above the age of 18 years & holding DIN can become a director in the company.
Who cannot form an OPC?
A Minor, Foreign citizen, Indian Non-resident, a person incapacitate to contract are restricted from Forming a One Person Company.
