One Person Company registration

One Person Company

In 2013, the Companies Act, 2013 introduced the concept of a ‘One Person Company (OPC)’. This created an entirely new set of opportunities for budding entrepreneurs who can start a business single-handedly by creating their own single-person economic entity. A one-person company (OPC) is a refinement of a sole proprietorship.

In an OPC, a single promoter gains complete control of the company, limiting his or her liability for contributions to the enterprise. However, a director nominee is present but has no authority until the real director is unable to continue. According to Section 2 (62) of the Company’s Act 2013, a company can be formed with only one director and one member. A One Person Company Registration in India is a type of entity with fewer compliance requirements than any other type of company. An OPC is simple to manage because it is run by a single person. If you are an entrepreneur looking for a one-of-a-kind success, you can register as an OPC in India.

Get a Quote

Benefits:

Legal Standing

The member grants the OPC registration a separate legal entity status. The sole person who incorporated the OPC is protected by its distinct legal status. The member is not personally liable for the company's loss; instead, his or her liability is limited to the value of the shares that he or she owns. Therefore, the OPC and not the member or director may be sued by the creditors.

Easy Access to Funding

One person company registration in India can easily raise money through venture capital, angel investors, incubators, and other sources because it is a private company. Getting money is now simple.

Less Conformity

One person company registration is given some exemptions from compliance requirements under the Companies Act of 2013. The OPC is not required to prepare the cash flow statement. The secretary of the company is not required to provide any annual reports and maintain any account books.

Easy Integration

And one person company in India can be easily integrated without any legal hassles. A member also serving as a director should provide the approval for integration. There is no minimum paid up capital requirement.

Easy to Manage

Administration of the OPC can be made simple by allowing a single person to both find and lead it. Making decisions is straightforward, and it happens quickly. The member can easily pass both ordinary and special resolutions by writing them down in the minutes book and getting just one other member to sign them. Because there won't be any internal disputes or delays, managing the company will be easy.

Constant Repetition

The OPC has the function of perpetual succession even with only one member. A nominee must be chosen by the single-member when incorporating the OPC. The candidate will take over operation of the company in the event that a member passes away.

Eligibility criteria/Checklist

Maximum and minimum membership requirements must be met.
There should be a nominee chosen before incorporation
Use Form INC-3 to request the nominee's approval
The Companies (Incorporation Rules) 2014 mandate that the OPC name be selected
Minimum authorised capital of ₹1 Lakh
DSC of the potential director
Evidence of the OPC's registered office.

Documents required

The documents required for OPC company registration include:

Maximum and minimum membership requirements must be met.
Address proof of the company's registered office.
Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
Consent to act as a director from the owner/director(s).
NOC (No Objection Certificate) from the property owner of the registered office.