One Person Company is defined as a company which comprises a single person as shareholder. This One Person Company can get all the benefits of the private limited company. It contains the access to the bank loans, limited liability, and legal protection. As per section 2(62) of the Companies Act, 2013, the OPC has come into existence. According to the one person company, the person and the company can be considered as separate legal entities. In case of solvency the owner of the company has no need to repay the debts. The OPC can raise the equity funding. The One Person Company is also eligible for the government schemes. It paves the way for the entrepreneurs who have ideas and participate in the market place can start-up the OPC and can be known as one man army.
Characteristics of One Person Company
The member in the OPC has limited liability. There is perpetual succession in OPC. No public subscription is allowed in OPC. There is no minimum capital requirement for the One Person Company. The company thus registered should have OPC Private limited as the suffix. If the capital amount exceeds Rs.50 lakh and if the turnover exceeds Rs.2 crore, then OPC must be converted into the Private limited Company.
There is requirement for the nominee.
The proposed company should have registered office address.
The Directors should have the DIN.
The Directors and the subscribers should have the DSC.
If the proposed director and Shareholder are Indian citizen, then the following documents are necessary.
Address proof – Bank statement or Telephone bill or Mobile bill
Passport size photo.
If the proposed Director and the shareholder are Foreign Nationals, then following documents are necessary.
Copy of passport
Copy of address proof
Copy of the nationality proof
Two passport size photo.
Register office documents.
If the office is on rent, rental agreement is required.
Electricity bill (Not older than two months is necessary)
Occupant needs to provide NOC (No objection certificate) from the land lord to operate the business.
Procedure to register
Step 1: Name Application
Reservation of name of the company is made in an application. It is done with the registrar of companies. The applicant can provide two names and can do one re-submission.
Step 2: Name approval/Rejection
The CRC (Central Registration Centre) may either get approval or may get rejection wen the application is received.
Step 3: Application for DSC
DSC can be obtained for all the subscribers and Directors of the company.
Step 4: Preparation of MOA and AOA
Every company should draft MOA, AOA. It is necessary for attaching the DSC in both the documents.
Step5: Forms and the document filing
Application for registering of One Person Company to be filed with MOA and AOA. The other supporting documents and the prescribed fees should be paid.
Step 6: Certificate of Incorporation
When satisfied the ROC issues the Certificate of Incorporation. The DIN, PAN and TAN shall also be given.
A minor, foreign citizen, NRI and a person who is incompetent to contract are restricted from forming the OPC in India.
The natural person who is a citizen of India, can act as member and nominee of the Trust.
Certainly one Director is needed. And maximum number of Directors to create OPC is 15.
- Corporate Income tax: 30% of total income
- Surcharge: 5% of such income.
- Education cess: 3% of total income
- Dividend Distribution Tax: 15%
Yes. A company can change registered office address. The changed office address can be in any state or in the same state of the registered OPC.
The Director has the capacity to manage the company. It also depends upon kind of directorship it holds.
The OPC provides the credibility to the business in financial institutions, suppliers and the potential clients. So the companies can get the loans while entering into the deals.
Only in one OPC a person can become nominee.