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.
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.
The structure of the one person company (OPC) in recent times was launched as a refinement of the structure of a sole proprietorship firm. In an OPC, a single promoter gains full authority over the company thereby, restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of carrying on). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC has an average turnover of ₹2 crores thrice in a row and over or acquires a paid-up fund of ₹50 lakh and over, it has to be converted to a private limited company or public limited company within six months.
The directors' personal property is always safe in a private limited company, no matter the debts of the business.
Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.
Please Note: The OPC director must self-attest to the first three documents. All paperwork for a foreign citizen or NRI must be notarised (if they are currently residing in India or a non-commonwealth country) or apostilled (if living in a commonwealth country at present).
Note: Your registered office space needs to be a commercial premises; however, it can be the sole director’s place of residence as well.
Business Corporation Act
A business corporation act is the collection of laws in each state that governs corporations.
Certificate of Incorporation
The title of the document filed in many states to create a corporation. Also known as the articles of incorporation or corporate charter.
The individuals who, acting as a group known as the board of directors, manage the business and affairs of a corporation.
Liability (as a stockholder or shipowner) limited by statute or treaty.
A procedure that allows a corporation to obtain exclusive use of a corporate name for a specified period of time.