Overview
The One Person Company (OPC) in recent times was launched as a good refinement over the sole
proprietorship. In OPC, a single promoter gains full authority over the company thereby
restricting his/her liability towards their contributions to the enterprise. Therefore, the said
person will be the sole shareholder and director (however, a director nominee is present, but
has zero power until the real director proves incapable of getting into the contract). Also,
there can be no opportunity for contributing to employee stock options or equity funding.
Additionally, if an OPC company has an average hattrick turnover of Rs. 2 crores and over or
acquires a paid-up fund of Rs. 50 lakh and over, it has to be converted to a private limited
company or public limited company within six months.
Document Required
To Be Giveny One Person Company Director
- Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or
Electricity Invoice)
- Scanned transcript of Rental Agreement written in the English language
- Scanned transcript of N-O or No-objection Certificate from the concerned property landowner
- Scanned transcript of Property or Sale Deed printed in English (if the property is owned)
Note: Your office space which is registered needs to be a commercial area; however, it can be
your house of residence as well
Benefits
To Be Giveny One Person Company Director
- Scanned transcript of Passport (Foreign Nationals & NRIs) or PAN Card
- Scanned transcript of Passport, Voter's ID or Driver's License
- Scanned transcript of Current Bank Account Statement/Phone or Mobile
- Invoice/Electricity or Gas Invoice
- Scanned passport-sized photo
- Specimen autograph or impression (blank document with autograph)
Note: The OPC director as a mandate should self-attest the first three documents. If an
NRI or a foreign national, all the document sheets should be notarized without fail (if at
present in India or a non-Commonwealth nation) or apostilled (that is, living in a Commonwealth
country).
Documents Necessary For The Registered Office
- Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or
Electricity Invoice)
- Scanned transcript of Rental Agreement written in the English language
- Scanned transcript of N-O or No-objection Certificate from the concerned property landowner
- Scanned transcript of Property or Sale Deed printed in English (if the property is owned)
Note: Your office space which is registered needs to be a commercial area; however, it can
be your house of residence as well
Process Duration
5 Business Days
Firstly, the OPC director should petition or apply for the DSC otherwise known as Digital
Signature Certificate, which is mandatory to file for the company registration records. For this
to come through, one only needs to submit a few scanned documents; after which our agents will
file the form by filling it and put it online for submission.
7 Business Days
Once the application for the DSC is done, our agents will ask you to choose a name for your
business and send us the relevant scanned documents for the same. The sent documents will be
used to file for the SPICe i.e. INC-32 and the MoA is otherwise known as the Memorandum of
Association and the AoA also known as the Articles of Association. Finally, at the end of this
process, the Certificate of Incorporation will be processed and approved.
2 Business Days
All companies need a registered PAN or Permanent Account Number and TAN or Tax Account Number.
The application will be filed online by our representatives, however, you will be asked to
courier the hard copies of the relevant and required documents yourself. Post the processing,
the TAN and PAN will be dispatched to you to your registered office address only within 21
business days.
FAQ
1. Why Should I form an OPC?
An OPC is a good alternative to running a sole proprietorship, largely because it gives limited
liability to the business owner. This means that your liability is limited to the amount you've
invested in the business; business debts cannot be recovered from personal possessions. Also, a
sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the
nominee director takes over and the entity continues to exist. Single entrepreneurs who do not
have another partner to start a private limited company may also consider it.
2. Who can register for an OPC?
OPC company registration can be done only by Indian residents, and that, too, only one at a time,
as per the specifications of the Ministry of Corporate Affairs.
3. Who can register for an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and
submit income tax returns and annual filings with the RoC.
4. Who can register for an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It
needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be
paid-up. This means that you don't really need to invest any money into the business.
5. Who can register for an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid
at flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate
Tax.
6. Who can register for an OPC?
The MCA is skeptical about a single person in charge of a large corporation. Therefore, it
requires all OPCs to be converted into private limited or public limited companies on crossing a
certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the
three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be
converted into an OPC.
7. Who can register for an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You'll be
shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in
compliance fees and an auditor to inspect your books.