One Person Company Registration India
One Person Company (OPC) can be formed with only one owner, who acts as both the director as well as a shareholder of the company. There can be more than one director, but not more than one shareholder. It is registered as per the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).
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One Person Company Registration India
One person company registration provides corporate status and many benefits to the members and directors.
In the case of a Private company, at least two members are required which is not the same in the case of OPC. To eliminate this drawback and allow a single person to reap the advantages of One Person Company, this sort of a company structure is introduced through the Companies Act, 2013. One Person Company registration is simplified with online filing and process.
One Person Company feature is such that it has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. One person company is a type of Private Limited Company.
Advantages of One Person Registration in India
Limited Liability of Owners
Separation of Management and Ownership
Separate Legal Existence
Lower Compliance Requirement
Photograph & Signature
Documents Required for OPC Registration
In India, One Person Company registration cannot be done without proper identity and address proof. These documents will be needed for all the partners and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the OPC registration process acceptable.
The director of the One Person Company should submit the scanned transcripts/ copies of the following documents mandatory for OPC registration-
- PAN card or Passport
- Passport, for NRIs and Foreign Nationals
- Scanned transcript of Driver’s License or Voter’s ID
- Updated gas or electricity invoice/Bank account Statement/Mobile or landline phone invoice
- Specimen signature or impression
- Passport-sized photo
Please Note: The first 3 documents should be self-attested by the OPC director. All the documents for a foreign national or an NRI must be notarized (if residing in India or a non-Commonwealth country at present) or apostilled (if living in a Commonwealth country at present).
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
OPC Registration Online Process
Before exploring the concept of a one person company, let us have a brief understanding of the various types of companies that can be formed. A company can be established for a lawful purpose by the following number of persons:
- Seven or more persons, in case of a public limited company.
- Two or more persons, in case of a private limited company.
- One person, in case of a one-person company.
One Person Company Registration Requirements
Unlike a private limited company, a one person company has certain restrictions associated with its incorporation. Hence, before starting an OPC registration online, its essential to understand the constraints and ensure the promoter is eligible as per the Companies Act to register a OPC.
- Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
- Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
- Legal entities like Company or LLP cannot incorporate a OPC.
- The minimum authorised capital is Rs 1,00,000.
- A nominee must be appointed by the promoter during incorporation.
- Businesses involved in financial activities cannot be incorporated as a OPC.
- OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.
Thus, a one person company can be formed by an Indian citizen who has his/her presence in India for at least 182 days during the immediately preceding calendar year. A person can incorporate not more than one OPC. Finally, an OPC is prohibited from having a minor as its member.
Make Application in 3 Easy Steps
1. Answer Quick Questions
- Pick a Package that best fits your requirements
- Nearly 10 minutes to fill in our Questionnaire
- Provide basic details & documents required for registration
- Make payment through secured payment gateways
2. Relax While Team of Experts Get It All Done
- Assigned Relationship Manager to help you with OPC registration.
- Procurement of Digital Signatures (DSC)
- Application for OPC Name Reservation under SPICe
- Documents drafting including MOA and AOA
- Certificate of Incorporation
- Application for PAN and TAN
3. Wow! OPC Registration was Easy
- Your business is registered, get-set-grow!
- All it takes is 15 – 18 working days to register and
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.
One Person 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.
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.
The OPCs in India are taxed in the following ways and rates:
- Corporate Income-Tax: 30% of the Total Income/Net Profits
- Surcharge: 5% of such income, if it exceeds INR One Crore
- Education Cess: 3% of the total of Income-Tax and Surcharge
- Dividend Distribution Tax (DDT): 15%
Lastly, the provisions of the Minimum Alternative Tax (MAT) are also applicable.
As per the Companies (Incorporation) Rules, 2014, a One Person Company has to change itself compulsorily into a private limited company or a public limited company, if at any point of time, its paid-up capital exceeds INR 50 Lac OR its average annual turnover of three immediately preceding consecutive financial years becomes more than INR 2 Crore. Under any of these conditions, the OPC is necessarily required to inform the relevant ROC through Form INC-5, within 60 Days of the exceeding threshold limits. Here, it may also be noted that an OPC cannot voluntarily change itself into any type of company, within two years of its incorporation, except under any of these two cases of exceeding the threshold limits.
No, no other persons than an Indian citizen or a Resident in India, can register a one person company anywhere in India. This means, a non-resident Indian (NRI), or a foreign national, cannot set up an OPC in India.
The minimum authorised capital for starting up a one person company is Rs. 1 lakh.