One Person Company Registration

Registration Process

As per section 2(62) of the Companies Act, 2013, “One Person Company” means a company which has only one person as a member.

With the passage of time, the OPC mode of business organization is all set to become the most preferred form of business organization. The benefits arising from this novel concept are many, to name a few –

Minimal paperwork and less number of compliances
Ability to form a separate legal entity with just one member
Provision for conversion to other types of legal entities by the introduction of more members and amendments in the Memorandum of Association.

The One Person Company concept would hold a bright future for small traders, entrepreneurs, artisans, other service providers with low risk-taking capacity. The OPC would act as a launchpad for such entrepreneurs to showcase their capabilities in the global arena. The foreign joint venture capitalists are going to find it quite feasible to deal with a sole entrepreneur rather than having to even it out with numerous shareholders/directors leading to chances of discrepancy in ideas, concepts, and understanding of the business.

Mylegalbusiness has a top score of registering thousands of One Person Company in India. Mylegalbusiness is working round the clock to serve our clients best consultancy and legal services.

Advantages

Not just one or two but there are numerous reasons why you should go for One Person Company registration. Let’s find out what they are:

Personal freedom that allows the Professional, skilled person to adopt the business of his choice.
Personality driven passion and implementation of a business plan.
The desire of the entrepreneurial person to take an extra risk and willingness to take additional responsibility.
Personal commitment to the business which is the sole idea of the person and close to his heart.
It is run by individuals yet OPCs are a separate legal entity similar to that of any registered corporate.
A-One Person Company is incorporated as a private limited company.
Unlike a private limited or public limited company (listed or unlisted), OPCs need not bother too much about compliances.

Types of One Person Company

A company limited by shares or;
A company limited by guarantee or;
An unlimited company.

Minimum Requirements for registering an OPC in India

Minimum One Director
One Nominee is compulsory
One Member
One shareholder

Documents/Details required for OPC Registration

Fromproposed Director/Subscriber and Nominee
i. Copy of PAN card
ii. Copy of Identity proof (Aadhaar Card/Passport/Driving License/Voter Card)
iii. Copy of Address Proof (Latest Bank statement/Electricity Bill/Telephone bill/Postpaid Mobile Bill)
iv. Passport Size photograph
v. Mobile No. and Email ID.
vi. Educational Qualification
vii. Shareholding Details

For Registered office proof of the company
i. Utility Bill such as electricity bill/telephone bill/Postpaid Mobile Bill/Gass Bill for proposed Registered office address of company.
ii. NOC/Rent Agreement

FREQUENTLY ASKED QUESTIONS

WHO IS ELIGIBLE TO ACT AS A MEMBER OF AN OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding one financial year.

A PERSON CAN BE MEMBER IN HOW MANY OPCS?

A person can be a member of only one OPC.

IS THERE ANY TAX ADVANTAGE ON FORMING AN OPC?

There is no specific tax advantage to an OPC over any other form. The tax rate is flat 30%, other tax provisions like MAT & Dividend Distribution Tax applies as they apply to any other form of company.

IS THERE ANY THRESHOLD LIMITS FOR AN OPC TO MANDATORILY GET CONVERTED INTO EITHER PRIVATE OR PUBLIC COMPANY?

In case the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into a private or public company.

WHAT IS THE MANDATORY COMPLIANCE THAT AN OPC NEEDS TO OBSERVE?

The basic mandatory compliance are:-

Atleast one Board Meeting in each half of calendar year and time gap between the two Board Meetings should not be less than 90 days.
Maintenance of proper books of accounts.
Statutory audit of Financial Statements.
Filing of business income tax return every year before 30th September .
Filing of Financial Statements in Form AOC-4 and ROC Annual return in Form MGT 7.

WHO CANNOT FORM A ONE PERSON COMPANY?

A minor shall not eligible becoming a member

Foreign citizen
Non Resident
Any person incapacitated by contract.

HOW DO I CONVERT AN OPC TO A PRIVATE LIMITED COMPANY?

Mandatory Conversion of One Person Company (OPC) to Private Limited Company (PLC) is required in case a One Person Company meets certain parameters, like:
Effective date of increase in the paid-up share capital of a One Person Capital beyond rupees fifty lakhs, AND
An increase of average annual turnover during the period of immediately preceding three consecutive financial years is beyond rupees two crores.
In the above case, the One Person Company shall be mandatorily required to convert itself into either a private or a public company Within a Period of Six Months. In this article, we also look at the procedure for conversion of one Person Company into a private limited company or limited company.
Voluntary Conversion of OPC to Private Limited Company:
When a One Person Company gets incorporated, it cannot convert itself to Private or Public company before two years from the date of incorporation.