One Person Company (OPC) Incorporation

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One Person Company is a private company which has only one person as a member. Introduced by the Companies Act, 2013, this new concept is a significant milestone for the new entrepreneurs who are willing to start a new venture on their own by allowing them to create a separate legal economic entity.Since there is no mediation or intervention from any third party, more and more entrepreneurs are coming up and setting up their business and encouraging self-employment, thus drastically increasing the overall economy of our country.

The OPC is indeed an improvement to the concept of sole proprietorship as the person will be the only director and shareholder. Thus, this person has full control over the company and limited liabilities to contributions to the business at the same time.

Moreover, if an OPC hits an average turnover of Rs. 2 crores in three years or has a paid-up capital of over Rs. 50 lac, it must be converted into a Private Limited Company or Public Limited Company within a period of 6 months.One Person Company cannot be incorporated or converted into a company under section 8 of the Companies Act 2013.
 

Why should you form an One Person Company

1. Limited Liability to Director’s own assets: If not able to repay the loans in an OPC, only investment in the business is lost, but the director’s personal assets are safe.
2. Complete control over the company: The person is the single owner of the company which ultimately leads to fast decision making and execution.
3. Uninterrupted existence: Unaffected by the death of a member or change in the ownership.
4. Minimal Paperwork: OPC is easy to sell and requires minimal documentation.
5. Easy to manage: This form of business is easier to manage with a few ROC filing.
6. Separate Legal Entity: One Person Company operates as a separate legal entity with a limited liability protection.
7. Minimum Compliances: OPC has to face little compliance burden and regulation as compared to other companies.OPC is also exempted from certain provisions relating to notices of the meetings, Quorum for meetings, Proxies and Appointment of Chairman for meetings.

Procedure of Incorporation of One Person Company(OPC)

1. Obtain Digital Signature Certificate [DSC]
2. Obtain Director Identification Number [DIN] 
3. Select suitable Company Name, and make an application to the Ministry of Corporate Affairs (MCA) for availability of name
4. Draft Memorandum of Association (MOA) and Articles of Association(AOA)
5. Sign and file various essential documents including Memorandum of Association(MOA)& Article of Association(AOA) with the Registrar of Companies(ROC) 
6. Payment of a Requisite fee to Ministry of Corporate Affairs and also Stamp Duty.
7. Scrutiny of documents at Registrar of Companies [ROC].
8. Receipt of Certificate of Registration/Incorporation(COI)from ROC
 

Documents Required for OPC Registration

1. To be submitted by Director
• Copy of PAN Card or Passport 
• Copy of Voter's ID/Passport/Driver's License 
• Copy of Latest Bank Statement/Telephone or Mobile /Electricity/ Gas Bill 
• Passport-sized photograph 
• Specimen signature (blank document with signature) 

2. For the Registered Office
• Copy of Latest Bank Statement/Telephone or Mobile/ Electricity/ Gas Bill 
• Copy of Notarized Rental Agreement in English 
• Copy of No-objection Certificate from the property owner
• Copy of Sale Deed or Property Deed in English (in case of owned property) 

3. Minimum Requirements for One Person Company Registration
• Minimum one Director ( Resident of India)
• Minimum one Shareholder
• Minimum one Nominee
• Minimum Share Capital to be Rs. 1 lac
• Director Identification Number (DIN) for all directors
• Digital Signature Certificate (DSC) for 1 promoters and 1 witness
 

What is included in our package

1. DIN for 1 director
2. Digital Signature for 1 director
3. Name Approval
4. MOA/AOA
5. Company PAN Card
6. ROC Registration fees

You May Also Want To Know

1. How many people are required to start an OPC?
Only one Person is required to start an OPC who acts the director as well as the shareholder.

2. Who can become a member of a One Person Company?
Only a Natural person who is an Indian Citizen shall be eligible to act as a member and nominee of an OPC.

3. Do I have to be present in person for Incorporation of a One Person Company?
As the entire procedure is online so you don’t have to be present in person. You just have to send a scanned copy of the required documents via email.

4. What are the compliance exemptions for an OPC?
An OPC is exempted from doing the following compliances:-
• Sign on Annual returns
• Sign on Financial statements
• Power of Tribunal to call meetings of the members
• Notice of meeting
• Quorum for meetings
• Chairman of meetings
• Proxies
• Calling of extraordinary general meetings
• Voting through electronic means
• Restriction on voting  rights
• Voting by show of hands.
• Demand for Poll.
• Postal Ballot.
• Statement to be annexed to notice.

5. How much money do I need to invest to start the business?
You need to have a bank account with minimum balanceRs. 5000/-. You need not invest anything in starting your business

6. Can any Minor become a Member or Nominee of an OPC?
No minor shall become member or nominee of the One Person Company (OPC) or can hold share in OPC.

7. Can OPC voluntary convertinto any kind of Company?
No OPC can convert into any kind of company (i.e Private or Public Company) unless two years have expiredfrom the date of incorporation of One Person Company, or threshold limit (Paid up capital).

8. A Person can be a member of how many OPC?
A person can be a member of only one OPC. 

9. What is the Provision of a nominee under One Person Company?
The sole member of One Person company need to appoint another individual as his nominee at the time of incorporation of OPC, that name of the nominee shall have to mention in the Memorandum of Association (MOA) of the company.

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