fbpx

One Person Company Incorporation

Certifications Bay is here to assist you with your One Person Company Incorporation online, providing flexible and cost-effective consultancy services. Focus on your core business while our experts guide you through the registration process! Contact us to get started today!

Free Expert Consultation

Talk to Business Registration Expert

Business Registration Expert

Talk to Neha Sharma our Business Registration Consultant.

India's Best Consulting Firm

Among India's Top Consulting Firms, delivering excellence in legal and compliance services.

Lowest Fees

CertificationsBay Offers the lowest fees without compromising on service, ensuring affordability for all.

Trusted platform

A trusted platform, renowned for reliability, integrity, and client satisfaction. Rated 5- Stars by 100s of Clients.

Support 24/7

Providing round-the-clock support, because your business success is our priority, every hour of every day.

How much it cost to Register Business in India?

The cost of establishing a business in the India varies significantly, depending on a range of factors, such as:

  • Type of business
  • Location
  • Specific licensing requirements

Offering all-inclusive business setup services in India, we understand these complexities and offers a comprehensive cost calculator. This tool provides a transparent estimation of all expenses involved in setting up your business in India. With CertificationsBay’s cost calculator, you can strategically plan your investment, making the journey toward business establishment more transparent and manageable.

Business Registration Cost Calculator

What is OPC?

As per Section 2(62) of the Companies Act, a One Person Company (OPC) is a type of company that has a single individual as its sole member. In an OPC, the individual promoter has complete control and authority over the company, acting as both the shareholder and director. However, a nominee director is also appointed, who has no authority unless the actual director is unable to perform his duties.

Furthermore, OPCs are required to follow specific regulations and guidelines outlined in the Memorandum of Association (MoA) and Articles of Association (AoA). These documents lay out the rights and responsibilities of both the company and its member, providing a framework for the operation of the Company. Compliance with these rules is essential to ensure that the OPC functions smoothly and effectively.

Streamlining One Person Company Incorporation

An OPC, or One Person Company, represents a unique blend of two business structures: the independence of a sole proprietorship and the advantages of a company. This innovative structure eliminates the challenges associated with finding suitable co-partners when establishing a registered entity.

By transforming unstructured proprietorship businesses into organized private companies, OPCs pave the way for sole proprietors and startups to thrive. Governed by Section 3(1)(c) of the Companies Act, 2013, OPCs can be established for any lawful purpose by an individual. As per Section 2(62), an OPC is defined as a company with only one person as its member.

OPCs are classified as private companies, comprising a single director and shareholder. This setup allows individuals to benefit from limited liability while operating as sole proprietors. The rise of One Person Companies exemplifies significant growth within India’s corporate sector.

When should a one-person company be converted to a private limited or public limited company?

An OPC must undergo conversion into either a private limited company or a public limited company in the following circumstances:

  • When the annual average turnover of the past three years exceeds Rs. 2 Crore.
  • When the paid-up share capital of the company surpasses or reaches Rs. 50 lakh or more due to fresh investments or an increase in share value.

Contact us to convert your One Person Company (OPC) into Private Limited or Public Limited Company.

Advantages of One Person Company Incorporation

  • OPC is a distinct legal entity, with rights similar to that of an individual, enabling it to engage in contracts, initiate and be subjected to legal proceedings.
  • Grant full control of the company to an individual.
  • Regardless of factors such as death, bankruptcy, or changes in membership, an OPC will maintain its existence as a separate legal entity.
  • Small businesses are suited to this type of company.
  • Offers flexibility in terms of taxes for the business.
  • OPCs are easy to manage.

Business Registration Free Expert Consultation

Book a Free Consultation

One Person Company Incorporation Documents Requirements

 

  • Proof of ownership of the principal office, along with evidence of ownership and a No Objection Certificate (NOC) from the owner.
  • Submission of Form INC-9 for declaration and Form DIR-2 for consent from the director is mandatory.
  • It is necessary to appoint a nominee in case the director or member becomes unable to perform his duties, and their permission must be obtained through Form INC-3, along with their PAN and Aadhar card details.

Our Team will help you prepare the required documents. Documents requirements varies depending on business model. Contact our team for guidance.

Criteria for One Person Company Incorporation Eligibility

Before proceeding with One Person Company (OPC) registration, it’s essential to meet the following eligibility criteria:

  • Residency Requirement: The individual forming an OPC must be a natural person and a resident of India in the preceding calendar year.
  • Single Member: An OPC can have only one member.
  • Unique Name: The proposed name for the OPC must be distinct and not similar to any existing company or trademark.
  • Limit on OPC Formation: An individual cannot form more than one OPC, and likewise, cannot be the nominee of more than one OPC.
  • Director Requirement: There must be at least one director for the OPC.
  • Paid-Up Capital and Turnover: Previously, there were thresholds for paid-up capital (Rs 50 lakh) and average annual turnover (Rs 2 crore) in the immediately preceding financial year. However, with recent budget revisions, there are no restrictions on these limits.
  • Name Specification: The name of the One Person Company must include “OPC Private Limited.”
  • Nominee Indication: It’s mandatory to indicate the name of another individual as a nominee. In the event of the subscriber’s death, the nominee assumes membership of the One Person Company.

FAQs on One Person Company Incorporation in India:

What is an One Person Company?

One Person Company is a company with just one member. According to Section 3 of the Companies Act 2013, OPCs are also private limited companies; hence they must adhere to all the requirements of a private limited company.

What are the eligibility criteria for acting as a member of a One Person Company?

A person who is an Indian resident or an Indian citizen is eligible to act as a member and nominee of an One Person Company.

Does an OPC have perpetual succession?

In essence, an OPC is a private limited company with a sole shareholder. Given that it is a private limited company, perpetual succession is possible. The sole member is needed to designate a candidate who will assume control in the event of his demise or incapacity.

Which individuals or entities are ineligible for forming a One-Person Company?

The following individuals are ineligible to form an OPC:Minors (individuals who are legally considered children and have not yet reached adulthood) Foreign citizens (non-Indian residents) Individuals who have been declared unfit by contract. Further, an entity cannot form an OPC.

Is it mandatory for a member of an OPC to appoint a nominee?

Yes, The appointment of a nominee by a member of an OPC is mandatory.

What makes OPC a suitable form of business?

OPC is a suitable form of business for individuals who desire complete control over their business while also enjoying limited liability protection, ensuring that their personal assets are not at risk.

What are the advantages of registering as a One Person Company (OPC)?

Some advantages of OPC registration include limited liability protection for the owner, separate legal identity for the business, ease of formation, fewer compliance requirements compared to other company types, and the ability to access funding and contracts in the name of the company.

Is there a minimum capital requirement for One Person Company (OPC) registration?

Previously, there was a minimum capital requirement of Rs 1 lakh for OPC registration. However, as per recent amendments, there is no such requirement.

Can a One Person Company (OPC) be converted into another type of company?

Yes, a One Person Company can be converted into a private limited company or a public limited company subject to compliance with the necessary legal procedures and regulations.

What are the compliance requirements for a One Person Company (OPC) after registration?

Some common compliance requirements for OPCs include annual filing of financial statements and annual returns with the ROC, maintaining statutory registers and records, conducting board meetings, and complying with tax regulations.

Can a minor become a member or nominee of an OPC?

A minor is not permitted to join an OPC, serve as its nominee, or possess shares of an OPC with a beneficial interest.

What are the restrictions of an OPC?

OPC cannot engage in non-banking financial operations, such as investing in the securities of anybody corporate, and OPC cannot be converted into a Section 8 company.

What is the INC-4 Form?

When the nominee of an OPC replaces the sole member of an OPC in the case of his demise or inability to enter into a contract, Form INC-4 is filed with the Registrar. With the prior written approval of the individual thus nominated in Form INC-3, such a form must be filed within 30 days of the change in membership.

Why CertificationsBay?

We streamline Corporate and Legal Compliances. 

Get Started Now.

Choose from 100s of our services. We provide all Corporate and Legal Services (CLS) and help business align with regulatory requirements.

NewsLetter

Subscribe to our NewsLetter & Transform your Business. Keep yourself updated with latest regulations.