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We would recommend Setbharatbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Setbharatbiz founder's vision

Nagasrinivas Director,Prakash Nagasrinivas & Saradhy Associates

I was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Setbharatbiz and definitely the Setbharatbiz is the best.

Prakash Kakani Director, PNS EV Hub

Overview

One Person Company Registration

A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013, to promote individual entrepreneurship while offering the benefits of limited liability. OPCs allow a single individual to establish a company with separate legal status, which means the company can own assets, incur liabilities, and enter into contracts in its own name. This structure is particularly beneficial for solo entrepreneurs and small businesses who wish to operate with corporate advantages without the complexities of managing multiple shareholders. An OPC combines the benefits of a private limited company with streamlined compliance requirements suited to individual ownership.

Why Registration is Important

  1. Limited Liability : Protects personal assets by limiting liability to the company’s paid-up capital.
  2. Separate Legal Status : Grants the company independence in legal matters, allowing it to own assets and incur liabilities.
  3. Ease of Management : Allows single ownership with full control while adhering to corporate regulations.
  4. Perpetual Succession : Ensures continuity of the business through nominee arrangements in case of the owner’s incapacity or death.
  5. Tax Advantages : Provides access to various tax benefits available to corporate entities.


Documents Required

To register a One Person Company in India, the following documents are generally required:

For Indian Nationals

For the Nominee



Procedures

The process to incorporate a Private Limited Company in India involves the following steps:

  • DSC
    Obtain Digital Signature Certificate
    The sole shareholder must obtain a DSC to sign documents electronically.
  • DIN
    Obtain Director Identification Number
    Apply for DIN for the sole shareholder using the SPICe+ form.
  • Name Reservation
    Name Reservation
    File the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Part A form to reserve a unique name for the OPC.
  • Incorporation Forms
    Filing of Incorporation Forms
    Complete SPICe+ Part B for company incorporation, providing details of the shareholder, nominee, and registered office.
  • MOA & AOA
    Drafting of MOA and AOA
    The Memorandum of Association (MOA) and Articles of Association (AOA) outline the objectives and internal rules of the OPC. These documents must be drafted and submitted.
  • Obtain Certificate of Incorporation
    Obtain Certificate of Incorporation
    Once all the documents are verified, the Registrar of Companies (ROC) issues the Certificate of Incorporation.
  • PAN & TAN
    PAN and TAN Application
    The OPC automatically receives its PAN and TAN along with the Certificate of Incorporation.
  • Bank Account
    Bank Account Opening
    With the Certificate of Incorporation, the OPC can open a bank account to commence business operations.


Features

Features & Benefits of One Person Company

Single Shareholder
An OPC can have only one shareholder, who also acts as the director.
Prev Next
Limited Liability
The shareholder’s liability is limited to the amount of capital invested in the company.
Prev Next
Separate Legal Entity
The OPC is a distinct legal entity, separate from its owner.
Prev Next
Nominee Appointment
There is no cap on the number of shareholders.
Prev Next
Ease of Compliance
The OPC is exempt from many compliance requirements applicable to larger companies.
Prev Next

One Person Company In India

Perpetual Succession
The OPC continues to exist irrespective of changes in ownership or the shareholder’s status.
Prev Next
No Minimum Capital Requirement
There is no minimum capital requirement for forming an OPC.
Prev Next
Tax Benefits
OPCs can take advantage of various tax benefits available to private companies.
Prev Next
Conversion to Private/Public Company
The OPC can be converted into a Private or Public Limited Company if it exceeds certain thresholds (e.g., paid-up capital or turnover).
Prev Next
Limited Shareholder Control
In an OPC, the single shareholder holds complete control over decision-making, allowing for quicker and more efficient management without needing approval from other shareholders or a board.
Prev Next


Comparison between One Person Company, Private Limited Company And Sole Proprietorship

Features One Person Company (OPC) Private Limited Company Sole Proprietorship
Legal Status Separate Legal Entity Separate Legal Entity Not a Separate Legal Entity
Liability Limited to shares Limited to shares Unlimited
Number of Owners Only 1 Shareholder 2-200 shareholders Only 1 Owner
Compliance Requirements Moderate High Low
Fundraising Capability Limited Moderate Limited
Perpetual Succession Yes Yes No
Transfer of Ownership Restricted Restricted Not applicable
Audit Requirement Conditional Mandatory Not Required


Frequently Asked Questions

Who can form a One Person Company?

Any individual who is an Indian citizen and resident in India can form an OPC. The same individual cannot incorporate more than one OPC.

Can an OPC be converted into a Private Limited Company?

Yes, an OPC can be converted into a Private Limited Company or a Public Limited Company, especially if it crosses the prescribed turnover or paid-up capital thresholds.

Is there a minimum capital requirement to start an OPC?

No, there is no minimum capital requirement to start an OPC in India.

Can a OPC have more than one director?

Yes, while an OPC can have only one shareholder, it can appoint up to 15 directors.

What are the annual compliance requirements for an OPC?

An OPC must file annual returns, financial statements, and conduct annual general meetings. However, the compliance requirements are generally simpler than those for a Private Limited Company.

Is it mandatory to appoint a nominee for an OPC?

Yes, the sole shareholder must appoint a nominee to take over the company in case of their death or incapacitation.

Overview

One Person Company Registration

A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013, to promote individual entrepreneurship while offering the benefits of limited liability. OPCs allow a single individual to establish a company with separate legal status, which means the company can own assets, incur liabilities, and enter into contracts in its own name. This structure is particularly beneficial for solo entrepreneurs and small businesses who wish to operate with corporate advantages without the complexities of managing multiple shareholders. An OPC combines the benefits of a private limited company with streamlined compliance requirements suited to individual ownership.

Why Registration is Important

  1. Limited Liability:Protects personal assets by limiting liability to the company’s paid-up capital.
  2. Separate Legal Status:Grants the company independence in legal matters, allowing it to own assets and incur liabilities.
  3. Ease of Management:Allows single ownership with full control while adhering to corporate regulations.
  4. Perpetual Succession:Ensures continuity of the business through nominee arrangements in case of the owner’s incapacity or death.
  5. Tax Advantages:Provides access to various tax benefits available to corporate entities.

Documents Required

To register a One Person Company in India, the following documents are generally required:

For Indian Nationals

For Foreign Nationals


Procedures

  • DSC
    Obtain Digital Signature Certificate
    The sole shareholder must obtain a DSC to sign documents electronically.
  • DIN
    Obtain Director Identification Number
    Apply for DIN for the sole shareholder using the SPICe+ form.
  • Name Reservation
    Name Reservation
    File the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Part A form to reserve a unique name for the OPC.
  • MOA & AOA
    Drafting of MOA and AOA
    The Memorandum of Association (MOA) and Articles of Association (AOA) outline the objectives and internal rules of the OPC. These documents must be drafted and submitted.
  • Incorporation Forms
    Filing of Incorporation Forms
    Complete SPICe+ Part B for company incorporation, providing details of the shareholder, nominee, and registered office.
  • Certificate of Incorporation
    Obtain Certificate of Incorporation
    Once all the documents are verified, the Registrar of Companies (ROC) issues the Certificate of Incorporation.
  • PAN & TAN
    PAN and TAN Application
    The OPC automatically receives its PAN and TAN along with the Certificate of Incorporation.
  • Bank Account
    Bank Account Opening:
    With the Certificate of Incorporation, the OPC can open a bank account to commence business operations.

Features

Features & Benefits of One Person Company

Single Shareholder

An OPC can have only one shareholder, who also acts as the director.

Limited Liability

The shareholder’s liability is limited to the amount of capital invested in the company.

Separate Legal Entity

The OPC is a distinct legal entity, separate from its owner.

Nominee Appointment

A nominee must be appointed to take over the company in case of the shareholder’s death or incapacity.

Ease of Compliance

The OPC is exempt from many compliance requirements applicable to larger companies.

Perpetual Succession

The OPC continues to exist irrespective of changes in ownership or the shareholder’s status.

No Minimum Capital Requirement

There is no minimum capital requirement for forming an OPC.

Tax Benefits

OPCs can take advantage of various tax benefits available to private companies.

Conversion to Private/Public Company

The OPC can be converted into a Private or Public Limited Company if it exceeds certain thresholds (e.g., paid-up capital or turnover).

Comparison between One Person Company, Private Limited Company And Sole Proprietorship

Features One Person Company (OPC) Private Limited Company Sole Proprietorship
Legal Status Separate Legal Entity Separate Legal Entity Not a Separate Legal Entity
Liability Limited to shares LLimited to shares Unlimited
Number of Owners Only 1 Shareholder 2-200 shareholders Only 1 Owner
Compliance Requirements Moderate High Low
Fundraising Capability Limited Moderate Limited
Perpetual Succession Yes Yes No
Transfer of Ownership Restricted Restricted Not applicable
Audit Requirement Conditional Mandatory Not Required

Frequently Asked Questions

Who can form a One Person Company?

Any individual who is an Indian citizen and resident in India can form an OPC. The same individual cannot incorporate more than one OPC.

Can a OPC be converted into a Private Limited Company?

Yes, an OPC can be converted into a Private Limited Company or a Public Limited Company, especially if it crosses the prescribed turnover or paid-up capital thresholds.

Is there a minimum capital requirement to start an OPC?

No, there is no minimum capital requirement to start an OPC in India.

Can an OPC have more than one director?

Yes, while an OPC can have only one shareholder, it can appoint up to 15 directors.

What are the annual compliance requirements for an OPC?

An OPC must file annual returns, financial statements, and conduct annual general meetings. However, the compliance requirements are generally simpler than those for a Private Limited Company.

Is it mandatory to appoint a nominee for an OPC?

Yes, the sole shareholder must appoint a nominee to take over the company in case of their death or incapacitation.

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