One Person Company Registration is a process that promotes microbusinesses and persons with entrepreneurial who don’t have business partners. It is a combination of a sole proprietorship business model and a normal legal entity. We have covered everything right from One Person Company Registration Fees, Time Involved, Tax Rates, Documents Required, Benefits, Disadvantages, etc.
OPC Full Form – ” One Person Company”
- What is One Person Company Registration?
- One Person Company Registration Fees
- One Person Company Name Availability
- Tax Rates in One Person Company
- OPC Registration Process Time
- One Person Company Registration Process Online
- Documents Required for One Person Company Registration
- Benefits of One Person Company Registration
- Disadvantages of One Person Company
- FAQs on One Person Company Registration
One Person Company is a business entity that has one owner with limited liabilities. The owner can act both as a shareholder or director. OPC in India came into force after the Companies Act, 2013 to support the entrepreneurs thus allowing them to create a single-person economic entity. The aim of OPC is to eliminate limitations of sole proprietorship a popular form of business. The owner’s liability is limited to the capital invested by him.
OPC Registration Govt Fees depend on the nominal share capital of the company. Govt Fees for OPC Registration whose share capital range between Rs. 10,00,000 to Rs. 50,00,000 is Rs. 2,000/-. In addition Rs. 200/- is added for every Rs. 10,000 as a part of nominal share capital.
Along with these, you might have certain additional costs such as stamp duties, form filing fees, DIN Application fees, etc for incorporation of One Person Company in India.
You can choose a name for a One Person Company at the time of its registration by filing an incorporation form or seek help from WEB Run Services available on the Ministry of Corporate Affairs.
As per the Income Tax Act, One Person Company is considered a Private Company in terms of taxation. Income Tax would be 30% of the income obtained during a financial year.
The Whole Incorporation Process of a One Person Company might take around 10 days subjecting to the department’s approval and the revert back from them. Tax for OPCs is higher compared to the tax levied on individuals.
One Person Company Registration Process is quite easy and we have mentioned it below. They are as under
- The first and foremost step is to obtain the DSC and DIN.
- Later, reserve your company name.
- The Next Step is to get the consent of the nominee in the prescribed forms.
- File the Consent in addition to the final incorporation forms with Memorandum Articles and Other Required Documents.
- Then receive the final incorporation certificate from the register of companies and commence business under the name.
- Apply PAN Number and a bank account in the name of One Person Company.
- All Directors and Stakeholders Photographs
- PAN Card of Directors and Stakeholders
- Self Attested ID Proof of Directors(Driving License/Passport/Voter ID)
- Electricity Bill or Utility Bill as address Proof of a Registered Office. However, the Bank Statement, Electricity Bill must not be older than 2 months. Carry a NOC from the landlord stating his/her consent to use the address specified as a registered office.
Go through the following sections to get acquainted with the advantages of One Person Company Registration. They are in the below way
Limited Liability – Legal Protection and Limited Liability is the main reason why one should choose OPC Registration.
No Minimal Capital – There is no need for minimal capital in the One-Person Company Registration.
Separate Legal Entity – You can enjoy the benefits of a Separate Legal Entity i.e. assets and liabilities of the company aren’t the assets and liabilities of stakeholders.
Less Compliances – You can avail the benefits of minimum compliances. During Anual Filing and all, we can treat One Person Company as a Private Limited Company.
Builds Credibility – Information regarding the OPC is stored in a public database thus building credibility.
Perpetual Succession – The company still exists even in the case of the death of any of its members or bankruptcy in the eyes of law.
- This kind of Company is suitable for only small business structures.
- We can’t carry out Non-Banking Financial Investment Activities such as investments in securities of anybody corporates.
- As the member can be a director of the company there won’t be a difference between ownership and management.
1. What is the minimum paid-up capital of One Person Company?
You can start One Person Company with an authorized capital of Rs. 1 Lakh. There is not any mandatory requirement of minimum paid-up capital in a One Person Company.
2. Can OPC Raise Funds?
Yes, OPC can raise funds through venture capital, financial institutions, angel investors, etc.
3. Can we change the nominee of a One Person Company after incorporating the Company?
Yes, we can change the nominee of a One Person Company anytime with prior intimation to the registrar.
4. Whom should we appoint as a nominee in One Person Company?
You can appoint anyone as a nominee given that he/she has a valid PAN Card with the Correct Name on it.
5. Can NRIs Start an OPC?
No, people having 18 years of age and the residents in India are only allowed to establish a One Person Company or to be a nominee.
6. What kind of businesses does OPC Suit?
OPC in general suits small businesses i.e. businesses having shared capital of 50 Lakhs or a turnover of 2 Crores.