One Person Company

Overview of the One Person Company Registration procedure in India:

One Person Company or OPC came into existence as a refinement to sole proprietorship firm. As the name suggests, in an OPC, the director and the shareholder are just one person with complete control over the company. There is a liability equaling to their contribution to the company. However, suppose the OPC achieves an average turnover of more than two crores thrice in a row or receives a completely paid-up fund of over 50 lakhs. In that case, the company must be converted into a private or public limited company within six months.

Advantages of registering a One Person Company:

There are many advantages exclusive to owning a One Person Company compared to other types of firms:-

• Limited Liability: The liability in a One Person Company doesn’t exceed the director’s assets in any case. This allows entrepreneurs to take risks in this kind of business.
• It continues to exist: The advantage of a One Person Company over a Sole Proprietorship firm is that – A sole proprietorship will end upon the death of an owner. In contrast, an OPC will continue existing as a separate legal entity and passed on to the nominee director even in such a case.
• Raise your Credibility options: You will gain further credibility from lenders and loan providers. This is because the accounts of an OPC are audited every year as per the regulations.
• Easy Registration Process: There are a few requirements when it comes to OPC registration; we will discuss them ahead.
• Gain the trust as a company and not an individual: Getting registered under the Companies Act, 2013 gives the company a perk as a trusted legal entity over the non-registered ones.

Requirements to fulfil while setting up a One Person Company:

There are certain requirements to fulfil when registering an OPC; let’s discuss them:-

• One Person: A single person is required who will be the sole owner and shareholder of the company. The only condition is that he/she should be an Indian citizen.

Required Identity Documents

What are the documents required when registering your One Person Company?

This is the list of documents that are required when registering an OPC:-

• Aadhar card, voter card, PAN card, driving license, etc. of the director and nominee as their identity proof.
• Electricity bill, gas bill, telephone bill etc. as the address proof of the residence
• In the case of a rented place – NOC and rental agreement from the landlord
• Passport Size Photographs of both the director and the nominee
• PAN Card copy of both the director and the nominee

Step by Step guide to the Registration Process:

The steps to be followed for registration of an OPC are:-

• Applying for DSC and DIN for the director
• Checking for the availability of a unique name and registering it
• Submission of all the documents and duly filled forms
• Applying for PAN, TAN and Bank Account
• Collection of CIN Number from Registrar

Frequently Asked Questions