WHAT IS ONE PERSON COMPANY ?
ONE PERSON COMPANY
A One Person Company (OPC) is a type of company introduced under the Companies Act, 2013 in India, allowing a single entrepreneur to establish a business with limited liability. It combines the benefits of a private limited company with simplified compliance requirements. The OPC is a separate legal entity, providing limited liability protection to its owner, and continues to exist regardless of the owner’s status. It is ideal for individual entrepreneurs, offering complete control over business decisions, while ensuring personal asset protection from business liabilities. The owner must nominate a successor to manage the company in case of incapacity or death.
A One Person Company (OPC) is a type of company introduced under the Companies Act, 2013 in India, allowing a single entrepreneur to establish a business with limited liability. It combines the benefits of a private limited company with simplified compliance requirements. The OPC is a separate legal entity, providing limited liability protection to its owner, and continues to exist regardless of the owner’s status.
DOCUMENTS REQUIRED FOR ONE PERSON COMPANY
PAN CARD
A PAN card is a unique identification tool for financial transactions and tax purposes in India, issued by the Income Tax Department. It contains a unique alphanumeric code.
PASSPORT SIZE PHOTO
A passport size photo is a small, standard-sized photograph used for identification purposes, typically required for official documents such as passports, visas, licenses, and other identification cards.
IDENTITY CARD
An identity card is a document that verifies a person's identity, containing essential information such as name, photo, date of birth, and unique identification number, used for official and legal purposes.
RENT AGREEMENT
A rent agreement is a legally binding document between a landlord and tenant, detailing terms and conditions of rental property use, including rent amount, duration, and responsibilities of both parties.
BILLS
Bills are documents requesting payment for services or goods provided. They detail the amount due, payment terms, and deadlines, commonly used for utilities, medical services, and other recurring expenses.
NOC
A No Objection Certificate (NOC) is an official document issued by an authority, stating no objection to the details in the document, often required for legal, employment, or immigration purposes.
STEP REQUIRED FOR REGISTER ONE PERSON COMPANY
STEPS THAT ARE REQUIRED
MINIMUM REQUIREMENT FOR COMPANY REGISTRATION
ONE SHAREHOLDER
A One Shareholder Company is a business entity with a single owner who holds all shares, offering limited liability, separate legal identity, and simplified management while maintaining complete control over decisions.
ONE DIRECTOR
A One Director Company is managed by a single individual who serves as the sole director, responsible for all executive decisions, ensuring streamlined management and operational efficiency.
ONE NOMINEE
A One Nominee Company requires a nominee appointed by the owner to take over management in case of the owner's incapacity or death, ensuring business continuity.
ONE PERSON
A One Person Company (OPC) is owned and managed by a single individual, providing limited liability protection, separate legal identity, and simplified compliance, ideal for solo entrepreneurs.
FEATURES OF ONE PERSON COMPANY
FEATURES ARE
A One Person Company (OPC) in India, introduced under the Companies Act, 2013, is designed for single entrepreneurs to enjoy the benefits of a corporate structure with minimal compliance. Here are the key features of an OPC:
Single Shareholder: OPC is owned by one person who acts as both the shareholder and the director, providing complete control over business operations.
Limited Liability: The owner’s liability is restricted to their investment in the company, protecting personal assets from business liabilities.
Separate Legal Entity: The OPC is distinct from its owner, capable of owning property, incurring debts, and entering contracts in its own name.
Nominee Director: The owner must nominate a person to take over the company’s operations in the event of their incapacity or death, ensuring business continuity.
Perpetual Succession: The company’s existence is not affected by the owner’s status, allowing it to continue operating independently.
Simplified Compliance: OPCs have fewer regulatory requirements compared to other companies, such as exemption from annual general meetings and simplified financial statement filing.
Tax Benefits: OPCs can enjoy various tax benefits and exemptions available to private limited companies.
Increased Credibility: The corporate structure enhances the business’s credibility and trustworthiness with clients, suppliers, and financial institutions.
PROCESS OF ONE PERSON COMPANY REGISTRATION
FILL BASIC DETAILS FOR COMPANY
Fill basic details: company name, registered office address, business activity, director's name, contact details, PAN, DIN, and nominee details for registration.
DIGITAL SIGNATURE CERTIFICATE AND DIN
Obtain a Digital Signature Certificate (DSC) for online document authentication and a Director Identification Number (DIN) for legal identification of the company's director.
VERIFICATION OF EMAIL DOCUMENTS
Verify email documents by cross-checking details, ensuring digital signatures are valid, and confirming the authenticity of sender information and document contents.
GET YOUR CERTIFICATE
After successful submission and approval of documents, obtain your Certificate of Incorporation from the Registrar of Companies, confirming the legal formation of your company.