If you want full control over your business, and be protected from liability while running it, you need to start a one-person company (OPC). Let’s see how to register an OPC through Vakilsearch with a simple process.
Are you starting a business on your own and want to limit your liability? You should register as an OPC. Did you know that many entrepreneurs in the early stages of their businesses prefer to create a one person company instead of a sole proprietorship business these days?
We will tell you the reason why!
Here is a look at all you need to know about this useful alternative to the proprietorship model of business.
Who Can Start a One Person Company?
Only adult Indian citizens residing in India can start an OPC. An individual cannot start more than one OPC, but you’re free to be part of other businesses. A minor can be neither a member nor a nominee in an OPC.
What do you Need to Start an OPC?
There must be at least one shareholder and director (they can be the same person) and one nominee. Just as with a private limited company, the minimum authorised capital must be ₹1 lakh, though there is no minimum for paid-up capital.
Documents Required to Start an OPC
- A hard copy of the completed Class-II form
- Identity Proof: Self-attested copy of PAN card or, in case of foreign national, copy of Passport
- Address Proof: Self-attested copy of (anyone) passport/election/voter ID/ration card/driver’s license/utilities bill/Aadhaar card. If the utility bill (electricity/telephone) is submitted, it should be in the name of the applicant and no older than two months from the filing of the form (12 months, in the case of foreign nationals).
Major reasons for incorporating an OPC in India
The separate legal entity status
An OPC registration in India is granted with the status of a separate legal entity. In this case, the member’s obligation is restricted to their shares, and they are not personally accountable for any losses that occur.
Easy to obtain funds
A one-person company is a separate legal entity, and thus it is simple to raise financing from venture capitalists, incubators, angel investors, and other sources. Loans are also easier to obtain for one-person businesses than for sole proprietorships.
When it comes to compliances under the Companies Act of 2013, there are some exemptions to the OPC. The company secretary is not to sign the books of accounts or annual returns, which must only be signed by the director.
It is simple to form an OPC since just one member and one nominee is a must. The member might also be the director. The minimum paid-up capital required to incorporate an OPC in India is ₹1 lakh. As a result, forming a one-person company is simpler than forming other types of entities.
Easier to handle
OPCs are simpler to operate since they may be formed and maintained by a single person. The decision-making process is simple and rapid. Thus, operating a firm is simple since there will be no controversy or delays.
A person must be named as a nominee. On the death of the member, the nominee will govern the firm in his/her stead.
One Person Company Registration with Vakilsearch
Vakilsearch helps you register your one person company in India in 3 simple steps:
- We reserve the name of your company and help you obtain a DSC and DIN
- Further, we draft and file the documents required for your OPC registration (MoA, AoA, PAN, & TAN)
- We help you with the post-registration formalities and compliances.
Process for One Person Company Incorporation
- Check eligibility and documents
- Apply for DSC & DIN of all the directors
- Application for name reservation
- File Spice+ form for company incorporation
- Apply PAN and TAN for your new company
- RoC issues a certificate of incorporation with a PAN and TAN
- Open a bank account and start operation.
- For your one person company, we submit an application for name approval
- We draft the MoA (Memorandum of Association) and AoA (Articles of Association)
- Moreover, we file the incorporation documents with the MCA for you. The PAN and TAN are allocated simultaneously
- We will keep you informed about the status of your OPC Registration.
To know more about the structure of a One Person Company: Click here
You should also read:
- One Person Company – Introduction, Features & Advantages
- Benefits of OPC Formation In India
- One Person Company Vs Sole Proprietorship: Which Is Right for You?
Now that you’ve learned everything about the advantages of establishing a one person company, it’s time to put your one person company ideas into action. Everything takes roughly 10-15 days, including obtaining the necessary documentation, the application procedure, the name approval process, and finally the incorporation of the OPC.
If you need help with the registration of a one person company, the next step would be to partner with Vakilsearch. Further, our team consists of experts and veteran professionals who are dedicated to providing a hassle-free and affordable incorporation experience. Hence, when you team up with us, the entire incorporation process becomes extremely simple and effortless.