One Person Company

A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013, allowing single entrepreneurs to enjoy the benefits of a corporate entity with limited liability. It is ideal for small businesses or solo entrepreneurs looking for legal recognition and credibility.

5 Benefits of OPC Registration:

• Limited Liability Protection: Owner’s liability is limited to their shares.
• Separate Legal Entity: OPC has its own legal identity, separate from the owner.
• Ease of Management: Minimal compliance compared to private limited companies.
• Tax Flexibility: Eligible for specific tax exemptions.
• Business Credibility: Improves trust with customers and financial institutions.

Documents Required for One Person Company Registration in India

• PAN Card as Identity Proof.
• Aadhar Card as Residence Proof.
• Bank Statement latest (Not older than 2 month)
• Passport size-photos
• Email and Mobile Number.
• Passport (optional)
• Proof of Registered Office Address: If the registered office is taken on rent, an NOC & a Rent Agreement from the landlord has to be submitted. NOC will be the consent of the landlord to allow the LLP to use the place as a registered office.
• Submit the latest utility bills like electricity, gas, telephone bill, etc. and the bill should contain the complete address of the premise & owner’s name & the document should not be older than 2 months

Important features of One Person Company in India:

• Simple Succession: Despite the fact that the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.
• Limitation of Liability: A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.
• Shareholder and sole Directorship: In a One Person Company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.
• Ownership of Real Estate: Because the OPC is considered a separate legal organisation, the individual has the ability to possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.

Checklist for One Person Company Registration in India

Following is the checklist for OPC Registration in India:

• Membership standards must be met at both the maximum and minimum levels
• Before incorporation, a nominee should be picked
• Form INC-3 should be used to request the nominee’s approval
• Companies (Incorporation Rules) 2014 require that the OPC name be selected
• The minimum authorized capital of Rs. 1 Lakh
• Digital Signature Certificate for Potential Director
• Proof of the One Person Company’s registered office
• DSC Of the proposed Director.