An Overview

A One Person Company is a company that has only one person as a member. One Person Company (OPC) was came into effect to encourage individuals who are a potential holders for starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and also avails the benefit related to the Company.

An OPC (One Person Company) is a unique business structure that combines the benefits of both a sole proprietorship and a private company. It provides the flexibility and simplicity of a sole proprietorship while offering the limited liability and corporate identity of a company. Additionally, it eliminates the challenge of finding co-partners, enabling entrepreneurs to start their business as a registered entity independently.

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.

One Person Company feature is such that is has only one share holder who owns 100% stake of the company. To understand one person company definition, we first need to get into the identity it creates. A registration not only provides corporate status but it also provides many benefits to the members and the directors. In case of Private Company, at least two members are required which is not the same in the case of OPC. To eliminate this drawback and allow a single person to get the advantages of One Person Company, this sort of a company structure is introduced through the Companies Act, 2013. One Person Company registration is simplified with online filing and process.

Please Note : The OPC director must self-attest to the first three documents. All paperwork for a foreign citizen or NRI must be notarized  (if they are currently residing in India or a non-commonwealth country) or apostilled (if living in a commonwealth country at present).

Scanned copy of current bank account statement/phone or mobile invoice/gas or electricity invoice
Scanned copy of rental agreement written in the English language
Scanned copy of a no objection certificate from the concerned property landowner
Scanned copy of property or sale deed printed in English (if the property is owned).

Please Note : Your registered office space needs to be a commercial premises; however, it can be the sole director’s place of residence as well.

Step 1: Apply for DSC and DIN : The first step of the OPC registration is to get DSC or Digital Signature Certificate of the Directors. For this some documents are needed these are as follows:

1.Aadhar card of the proposed director
2.Address proof of the proposed director
3.Email id and Phone number of the proposed director
4.Latest photo of the director
5.PAN card of the director  

After obtaining the Digital Signature Certificate (DSC), the next step is to apply for the Director Identification Number (DIN) for the proposed director. This is done through the SPICe Form (Simplified Performa for Incorporating a Company Electronically). Along with the DIN application, the director’s address proof and identity proof must be submitted.

Form DIR-3 is only required for individuals who are not already directors in any company. However, if the director is already associated with a company, they do not need to file Form DIR-3 separately.
For the incorporation of a new company, the Director Identification Number (DIN) can be applied within the SPICe Form for up to three directors, eliminating the need for a separate application.

Step 2: Application for Name Approval: After obtaining DSC and DIN, the next step is to decide the company’s name. The company’s name will be in the form of XYX (OPC) Private Limited. The name can be approved in the SPICe and 32 Form. Only one preferred name and the importance of keeping that name can be given in the SPICe and 32 Form. In case the name of the company is not accepted or get rejected, another name can be submitted by applying another SPICe and 32 Form. Once the suggested name is approved by the Ministry of Corporate Affairs (MCA) , you can move to the next step.

Step 3: Essential Documents:

 Step 4: Forms Filing with MCA: all such documents will be attached to the SPICe +Form, SPICe-AOA, and SPICe-MOA with the Digital Signature Certificate of an expert and the director and will upload the same on the official website of MCA for approval. There is no need to file separate applications for getting TAN and PAN numbers.

 Step 5: Issuance of the Registration Certificate: After verification of all the forms and documents, the ROC (Registrar of Companies) will issue a Registration Certificate and you can start a business.

• Income Tax Return Filing: It is mandatory for an OPC to file its income tax return every year, as per the requirements of the Income Tax Act.
• Tax Deducted at Source (TDS): The OPC is required to file TDS returns for each quarter, mentioning the TAN (Tax Deduction and Collection Account Number).
• Employee State Insurance (ESI) Registration: If an OPC employs more than ten employees, it must register for Employee State Insurance (ESI) as per the regulations.
• Income Tax Rate: The income of an OPC is taxed at 30% of its total income for the financial year, according to the applicable tax rate slab.

• Annual return must be signed
• To hold Annual General Meetings (AGM) and Board Meetings (BM)
• Company’s Financial Statements must be signed.
• Option to be given out with the requirement of conducting of AGM.
• Tribunal Power to call meetings of its members.
• Calling of EGM (Extraordinary General Meeting).
• Notice of the meeting.
• Statement must be annexed with the notice.
• Quorum for meetings.
• Chairman of meetings
• Proxies.
• Restriction on voting rights.
• Voting by show of hands.
• Voting by electronic means.
• Demand for poll.
• Postal ballot.
• Circulation of the member’s resolution.

• As per the Company Act, 2013 it is mandatory to conduct minimum two Board meetings.
• Statutory Audit by a Practicing Chartered Accountant.
• Appointment of Auditor.
• Annual Filings to the ROC (Registrar of Companies)
• Maintaining minutes and statutory registers.
• Form AOC-4 for the financial statements.
• MGT-7 form for an annual return.

• No Minimum Capital Requirement: One of the key benefits of registering a One Person Company (OPC) is that there is no minimum capital requirement. However, the maximum authorized capital cannot exceed ₹50 lakh at any time.
• Limited Liability: OPC offers limited liability to its director(s), meaning the liability is limited to the capital contributed to the business. Personal assets of the director are protected in case of any financial loss or liabilities incurred by the company.
• Fewer Compliance Requirements: The compliance requirements for an OPC are minimal compared to other company structures, making the registration process easier and involving less paperwork.
• Perpetual Succession: Perpetual succession means that the company will continue to operate even if the director is incapacitated, dies, or becomes ill. In such cases, a nominee will take over the position of director and continue the company’s affairs.
• Greater Credibility: An OPC is required to have its books of account audited annually, which enhances the company’s credibility and builds trust with consumers and vendors, ultimately boosting business reputation.
• No Legal Disputes: By registering as an OPC, the chances of future legal disputes between the director and third parties are minimized, as the business is considered a separate legal entity.
• Privileges for Small-Scale Industries: OPCs enjoy several benefits typically available to small-scale industries. These include easier access to funding without the need for collateral, lower interest rates on loans, and privileges under the foreign trade policy, all of which contribute to the growth and development of the company in its early stages.

• We submit an application for name approval for One Person Company registration.
• We draft the Memorandum of Association (MoA) and Article of Association (AoA)
• We file the incorporation documents with the MCA. The PAN and TAN are allocated simultaneously.
• We will keep you updated about the status of OPC registration.
• We provide one of the best and easiest way to register the One Person Company.