SOLE PROPRIETORSHIP FIRM 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.

Overview

What is One Person Company (OPC) Registration ?

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 

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.
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.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.

Documents Checklist

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.

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

Pan Card Copy

Aadhar Card Copy

Passport Size Photo

Contact details of partners (Email-ID And Mobile Number)

Driving License / Voting Card / Passport Copy (Any one Documents).

Utility bill Proof (Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents)

Documents: Required for Registered office premises.

Rented

  • Rent Agreement.
  • Light bill of premises.
  • NOC from Owner

Non-Rented

Utility bill Proof (Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents)

Procedure for Incorporation

  • Fill the application and Submit to our executive with proper Documents and Make payment.
  • Company Name Approval within 3 working days.
  • Making Digital Signature certificate for director 1 working days.
  • Documents preparing for incorporation within 2 days.
  • Applying for company incorporation 8 days.
  • Congratulation your OPC has been incorporated.

Benefits

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. Separate Identity.

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.

B. Lesser Compliance requirement.

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.

C. Quick decision making.

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.

D. Succession

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.

E. Limited Liability

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. 

F. Authorized Capital.

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.

A. Tax Rate

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.

B. Less incentives for employees.

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.

C. High Turnover not allowed.

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.

Packages

Choose your package & proceed to pay

BASICSTANDARDPREMIUM
1 DSC 2 Years validity 1 DSC 2 Years validity 1 DSC 2 Years validity
1 DIN Number for Director1 DIN Number for Director1 DIN Number for Director
Name Approval for companyName Approval for companyName Approval for company
Authorized capital of 5 Lakh Authorized capital of 5 Lakh Authorized capital of 5 Lakh
Incorporation feesIncorporation feesIncorporation fees
PAN And TAN of CompanyPAN And TAN of CompanyPAN And TAN of Company
Incorporation KITIncorporation KITIncorporation KIT
ESIC Number for EmployeesESIC Number for EmployeesESIC Number for Employees
Professional Tax Enrollment Certificate (PTEC) Professional Tax Enrollment Certificate (PTEC) Professional Tax Enrollment Certificate (PTEC)
Professional Tax Registration Certificate (PTRC)Professional Tax Registration Certificate (PTRC)Professional Tax Registration Certificate (PTRC)
Goods And Service Tax (GST)Goods And Service Tax (GST)
Udyam RegistrationUdyam Registration
Import Export code (IEC)
ISO Certification 3 Years Validity
Rs. 6999 Rs. 8499Rs. 9999

Process

Get the process done in 5 Easy Steps

1. Choose the package and fill the form.

2. Make Payment

3. Our Executive will get in touch with you and verify the details.

4. Filing the Application to concern department

5. Congratulations your Work is complete

FAQ's

1. What is OPC According to Companies Act, 2013?

Answer: One person companies (OPC) is company Registered Under companies Act 2013.

2. How many number of members and directors are allowed at the time of OPC Company Registration?

Answer: Only One Member and One Director are allowed in at the time of OPC Company Registration.

3. How to choose name for OPC Company registration?

Answer: Name should be unique;
OPC Company name should be in the formation
Name + Object + Entity
Eg: XYZ Pharma OPC Limited

6. Who is not eligible to register one person company?

Answer: A Foreign citizen, minor, a non-resident Indian, any person with unsound mind, Any disqualified by ROC, Any person who is not into capacity to enter into contractual obligation is not eligible to register an OPC Company.

5. Is it compulsory to appoint nominee in OPC Company?

Answer: Yes, at the time of OPC Company registration it is mandatory to elect nominee. INC-3 form is used to take consent of nominee.

4. What documents are required to open current account for OPC Company?

Answer: Certificate of incorporation, MOA And AOA, KYC of Director and signature on board Resolution for Account opening.

7. How many directors are allowed in One Person Company?

Answer: One Person Company is incorporated with single director and single member, at the same time same member and act as director and member at the time of one person company registration, An OPC can have maximum 15 directors and minimum 1 director and allowed in one person company during.

8. Can conversion form OPC Company to Pvt Ltd Company is possible?

Answer: Yes, If in case OPC Company has turnover of more than 2 core in 3 consecutive year or by passing resolution by all directors.

9. Is Audit is compulsory for OPC Company?

Answer: Statutory audit is compulsory for OPC Company. CA should be appoint has an auditor to verify the books of accounts and issue a statutory audit report.

10. Can OPC Company Raise Funds?

Answer: An OPC Company can raise funds through venture capital and financial institutions or only after converting into Private Limited Company.

11. Different between sole proprietor and OPC Company?

Answer: In sole proprietor runs business on his own where as the personal property can be utilized in case to clear the debt of creditors of company. Liability of OPC Company extends to till companies assets.

11. What is AOA?

Answer: AOA in One Person Company stands for Article of Association. The AOA in One Person Company defines by law, rules and regulations within internal constitution of the said company.

12. What is restriction to carry on business activity of OPC Company?

Answer: OPC Companies cannot carry little business activity are mentioned below
1. OPC Companies cannot carry NBFC Business activity.
2. OPC Companies cannot issue or allot share to anyone except it members.
3. OPC Companies cannot invest securities on the name of company body incorporate, where as OPC Companies members can invest into securities if other body incorporates.

12. What is MOA?

Answer: MOA in One Person Company stands for Memorandum of Association. The MOA in One Person Company shows the mission, vision and objectives of the company.

Still have questions? Ask an expert for help

Call us at+91-7738877316

Email us support@setupfilings.com

Call us at+91-7738877316

Email us support@setupfilings.com