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One Person Company (OPC) Registration

One person company is new concept was introduced in companies’ act 2013, a new modern form of business which was proposed in India. This led to recognition of completely new form of starting business that accorded flexibility

One person company can be formed by one person as owner, who is director as well as shareholder of the company. One person company can just have one Director in company, but OPC can have more than one shareholder.

We can easily register one person company in accordance under Companies act 2013, such companies are only created when there is just one founder / promoter for the business. Young entrepreneur whose just have started business, prefer Opc with their unique decision making concept instead of sole proprietorship just because they can opt various benefits of OPC company.

Difference between OPC and Sole Proprietorships

OPC companies might seems similar to sole proprietorship business just because a single owner involves owning the business. But there are actually some different that exist between them.

The Major different between them is the two nature of the liabilities they carry. Though OPC is carries separate legal entity distinguished from its promoter the asset and liability of company remains its own. The promoter of the companies are not responsible for debts on the company.

Other side, sole proprietorship and its proprietor are the same. The law allows attachment and sale of proprietor’s individual asset in the case of non-fulfillment of liability of sole proprietorship firm.

Benefits of One person company (OPC) Registration.

There are various benefits for incorporating one person company (OPC) registration some important benefits are mentioned below.

A One person company (OPC) has separate Identity even though it has only one shareholder. It has distinct identity from it owners that creates it brand value for the company and its customers find it’s more reliable.

OPC has to comply with lesser Requirement under Companies act 2013, has compares to public company or private limited company.
Example. OPC having one director doesn’t have to conduct annual general meeting or board meeting like private or public company.

Since shareholder of company has authority to take decision, though it will become easier to take make decision in one Person Company to take decision, though it just has one shareholder in company and does not need approval of other and he is free to take individual decision on behalf of company.

At the time of incorporating one person company (opc) we have to appoint the nominee. In case if member is not able to continue the operation of business due to death or any such reason, then nominee has to take care of the organization and responsible to continue the business of the company.

Like sole proprietorship, one person Company (OPC) members will not be liable to the extent of the value of the share of company. Personal property and asset of the member will not be affected and he can take more risk and explore opportunities.

Minimum capital required for one person company (OPC), this modal of business is suitable for small type of business who started business independently.

Disadvantages of One Person Company (OPC) Registration.

There are no tax benefit for OPC and this is one of the most important disadvantage for taxpayers. Approx. the tax slab is as same as private limited company under income tax Act 1961, its taxes as 30% from total profit from the company.

Employee Stock Option Plan (ESOP) Scheme is a beneficial scheme for employee under which, company encourage to acquire the ownership in form of shares. In the same the share are allotted to employee at rate considerably lesser then market rate.

In case the turnover of one person company (OPC) has more than 2 crore, then it automatically get converted into private limited company. Accordingly OPC is not suitable for the company having high potential of turnover and can easily cross the required turnover.

An OPC cannot be voluntarily converted into a private company before two years of its incorporation.

Documents Required for Registration of One Person Company (OPC) Registration

For registration of One person company (OPC) firm all the partner should provide their documents mentioned in prescribed form. All the Documents should be in clear copy & truly certified by their individual owners.

The One person company (OPC) Registration will have to provide the below mentioned Documents.

The Documents Required for Registered office premises.

In Case if Property is rented

Procedure for Incorporation

basic

1 DSC 2 Years validity

1 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

ESIC Number for Employees

 Professional Tax Enrollment Certificate (PTEC)

Professional Tax Registration Certificate (PTRC)

Standard

1 DSC 2 Years validity

1 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

ESIC Number for Employees

 Professional Tax Enrollment Certificate (PTEC)

Professional Tax Registration Certificate (PTRC)

Goods And Service Tax (GST)

Udyam Registration

Premium

1 DSC 2 Years validity

1 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

ESIC Number for Employees

 Professional Tax Enrollment Certificate (PTEC)

Professional Tax Registration Certificate (PTRC)

Goods And Service Tax (GST)

Udyam Registration

Import Export code (IEC)

ISO Certification 3 Years Validity