ONE PERSON COMPANY
The major intent of One Person Company was to support business persons/entrepreneurs capable of starting a venture, by themselves. In One Person Company (OPC) only one member is allowed.
How we Do One Person Company Registration Online
Lawwale helps you to register One Person Company in India in 3 simple steps.
Benefits of One person Company
Minimum 1 Shareholder
Minimum 1 Director
The director and shareholder are often an equivalent person
Minimum 1 Nominee
Letters ‘OPC’ to be suffixed with the name of OPCs to differentiate it from other companies
To distinguish it from other companies,.OPCs face a lower compliance burden compared to non-public limited companies, so OPCs may be more professional in other functional and core areas.
Benefits of being a Small Scale Industries (SSI)
An OPC has various benefits offered to small scale industries, i.e. low-interest rate on loans, easy money from the bank without depositing any security to some extent, many times under foreign national trade policy and others. All of these things are often a boon to any business in the early years.
- Single Owner – In One Person Company only one person is involved resulting in quick decision making, controlling and managing the business without any laborious processes and performance adopted like other companies. The concept of belongingness leads the business to further growth.
- Credit rating – The OPC with a bad credit rating may even get the loan. The credit rating of OPC won’t be material if the rating of OPC is as per norms.
- Benefits under Income Tax Law – Any remuneration paid to the director is deductible under the tax law as opposed to the proprietorship. Other profits of presumptive taxation are also available under the Income Tax Act.
- Receive interest on any late Payment – OPC is eligible for all the advantages under Enterprises Development Act, 2006. The new start-up One person company is micro, small, or medium, thus they come under this act. As per the Act, if buyer or receiver receives any payment after a specified time, then an individual entitled to receive interest which is three times the bank rate.
- Increased Trust and prestige – Any business entity that runs within the sort of the corporate always gets more trust and respect.
Requirements of One Person Company
- Shares of the company shall not be transferred to anyone else.
- One Person Company is forbidden from giving any invitations to the public in order to subscribe to the securities of the corporation.
- No One Person Company could voluntarily convert into any other type of corporation within 2 years from its date of incorporation, barring when the threshold limit of paid-up share capital of Rs 50 lakh is crossed or its average annual turnover during the applicable period exceeds Rs 2 two crores.
- One Person Company shall not convert into a corporation registered under Section 8 of the Companies Act, 2013.
- One Person Company is requisite to give a lawful identity by stipulating a particular name under which the activities of the corporation could be carried on.
- The words ‘One Person Company’ should be cited below the name of the firm, wherever the name is affixed, utilized or engraved.
The Process required for a One Person Company Registration includes
- Application for Name Reservation- An individual can apply for Company Name Reservation by visiting the official website of the Ministry of Corporate Affairs (MCA) where the applicant can file the application.
- It is necessary for an individual to fill INC-1 form
- The Reserve Unique Name (RUN) web service is there on the MCA Portal, where an individual can reserve a name for a One Person Company in India.
- The name that is approved valid for 20 days from the date of approval (if the name is reserved for a new corporation).
Checklist (Documents required)
The Documents needed to be submitted for Registration of Registered Office of One Person Company are:
- Scanned copy of current bank statement or phone or mobile bill or electricity or gas Bill
- Scanned copy of Notarized Rental Agreement in English
- Scanned copy of NOC from the property owner
- Scanned copy of latest Tax Paid Receipt in English (for owned property)
The Documents needed to be submitted by the Company Partners for One Person Company Registration are:
- Scanned copy of PAN Card or passport (Foreign Nationals and NRIs)
- Scanned copy of Aadhar Card/ Voter’s ID/Passport/Driver’s License
- Scanned copy of current Bank Statement or Telephone or Mobile Bill or Electricity or Gas Bill
- Scanned passport-size photo
- Specimen autograph or impression