One Person Company (OPC) Registration in India
A one-person company (OPC) is a type of company structure that allows a single individual to operate a corporate entity with limited liability. This concept is particularly relevant in jurisdictions where there is a desire to encourage entrepreneurship and business development, even for individuals who don’t have partners or co-founders.
Here are some details about One Person Company Registration in India to get you started.
Benefits of One Person Company in India
Offers limited liability protection to the sole shareholder, ensuring personal assets are safeguarded from business debts.
Enables individuals to establish and operate a company with a sole owner, providing complete control over decision-making.
OPC enjoys a distinct legal identity, separate from its owner, facilitating perpetual succession.
Eliminates the need for a minimum capital contribution, reducing financial barriers for incorporation.
Involves fewer compliance obligations compared to other corporate structures, minimizing administrative burden.
Enhances credibility and trust among stakeholders, enhancing business opportunities and partnerships.
Eligible for various tax deductions and exemptions, optimizing tax planning and reducing overall tax liability.
Steps & Process of One Person Company in India
1. Apply & Obtain Digital Signature Certificate (DSC).
2. Apply Director Identification Number (DIN) Application.
3. Choose a unique name for the OPC.
4. Drafting of Memorandum and Articles of Association.
5. Filing of Incorporation Documents.
6. Pay the requisite fees for OPC incorporation.
7. Certificate of Incorporation.
8. Apply for PAN and TAN.
9. Post-Incorporation Formalities.
Document Required for One Person Company in India
- Identity and address proof of the sole owner/director
- Proof of registered office address
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Digital Signature Certificate (DSC) of the sole owner/director
- Director Identification Number (DIN) of the sole owner/director
- NOC from the landlord (if the premises are rented)
- Consent of the sole owner/director
- Declaration of compliance
- GST Registration (if applicable)
Deliverables of One Person Company in India
- Certificate of Incorporation
- Memorandum of Association (MOA) and Articles of Association (AOA)
- PAN Card
- TAN Certificate
- Incorporation Kit (including company seal and statutory registers)
FAQ's related to One Person Company
Yes, an OPC can be converted into a private limited company by following the prescribed procedures for conversion as per the Companies Act, 2013.
No, only a natural person who is an Indian citizen and resident in India can form an OPC.
Yes, an OPC cannot have a paid-up share capital exceeding Rs. 50 lakhs or turnover exceeding Rs. 2 crores in any financial year. If the capital or turnover exceeds these limits, the OPC must convert into a private limited company within six months.
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