One Person Company Registration in India (OPC)

Difference between One Person Company and Sole Proprietorship

One Person Company (OPC) offers several advantages over a Proprietorship Firm. Firstly, OPC has a separate legal identity, which means that it is a distinct legal entity from its owner, and therefore, the owner’s personal assets are protected in case of any legal liabilities incurred by the company. On the other hand, in a Proprietorship Firm, the owner is personally liable for all the debts and liabilities incurred by the business. Secondly, OPC has perpetual succession, which means that it continues to exist even in case of death or incapacitation of its owner. In a Proprietorship Firm, the business ends with the death of the proprietor. Thirdly, OPC has better access to funding and credit as compared to a Proprietorship Firm. This is because OPC has a separate legal identity, and therefore, can raise funds and obtain credit in its own name. Lastly, OPC has a more professional image and credibility as compared to a Proprietorship Firm, which can help in attracting customers and business partners. Overall, OPC offers several benefits over a Proprietorship Firm, making it an ideal business structure for single entrepreneurs.

Director or shareholder requirement (Minimum persons required)

• A minimum of onedirectoris required for one person company registration
• A minimum of oneshareholderand a nominee for shareholder is required for one person company registration.
• Director and shareholder can be the same person i.e. one person with a nominee can form a one person company.

Documents required for one person company registration (Documents required)

Initially, you need to provide following information.

• Name of proposed company
• Business objects of the Company
• State of registration
• Mail addresses and contact numbers of Directors/Shareholders

Documents required are as follows

• I. Identity and residence proof of Directors/Shareholder and Nominee:
  1. Scanned copy of pan card
  2. Scanned copy of Aadhaar card/driving license/voters’ identity card
  3. Bank statement/electricity bill or any other utility bill not older than 2 months (should be in the name of Director or Shareholder only)
• II. Documents for registered office of Company
  1. Scanned copy of electricity bill or no objection certificate in case of owned property or
  2. Scanned copy of rent agreement, electricity bill and no objection certificate if registered office premise is rented or
  3. Scanned copy of sale deed/property deed and no objection certificate in case of owned property and no electricity bill is available.

One Person company registration package inclusions

• Digital Signature of director, shareholder and nominee.
• DIN of Directors
• Drafting of Moa &Aoa of the Company
• Filing of company registration application with Registrar of Companies along with MOA, AOA and application for allotment of Pan and Tan.
• Certificate of Incorporation
• Pan of the Company
• Tan of the Company
• PF & ESIC registration of the Company
• Assistance in opening bank account.

Features of One Person Company

One member only

As the name suggests, an OPC can have only one member. This means that the owner has complete control over the company’s operations and decision-making processes.

Easy to manage:

As an OPC has only one member, it is easier to manage and operate as compared to other forms of companies. This results in faster decision-making and better control over the business operations.

Limits the personal liability

A One person company provides limited liability protection to its owners and shareholders. This means that if the company fails, the owners are not personally liable for any debts or liabilities incurred. This provides a great deal of financial security to the owners, as they are not at risk of losing their personal assets in the event of a business failure.

Separate legal entity

A One person company limited company is a separate legal entity. This means that the company is recognized by the law as an independent legal entity and is responsible for its own liabilities and obligations. This provides the owners and shareholders with a great deal of freedom as they are not personally responsible for any of the company’s actions.

Easy and quick registration

The formation of a One person company is relatively easy compared to other forms of business organizations. There are fewer legal formalities involved and the company can be formed in a matter of days.

Perpetual succession

A One person company limited company has perpetual succession. This means that the company continues to exist even if its owners or shareholders die or leave the company. This provides a great deal of stability to the company and allows the business to continue even in the event of changes in ownership.

One Person Company Registration process (Registration Process)

• Choose a Unique Company Name The company name should be unique and should not be identical or too similar to existing company names already registered with the Ministry of Corporate Affairs (MCA)
• Obtain Digital Signature Certificates The applicant should obtain the Digital Signature Certificates (DSC) of all the directors and the promoters.
• Draft the Memorandum of Association and Articles of Association The Memorandum of Association (MOA) and Articles of Association (AOA) should be drafted as per the Companies Act, 2013.
• File web form INC-32 The web form Spice INC-32 alongwith Memorandum of Association and Articles of Association should be filed with the Registrar of Companies (ROC).
• Obtain Certificate of Incorporation Upon successful filing of web form INC-32, the Registrar of Companies will issue Certificate of Incorporation.
• Obtain Pan and Tan of Company Pan and Tan of Company are issued along with Certificate of Incorporation.

Why Fastlegal

We make it easier for entrepreneurs to get their One person company registered online from the comfort of their home. With Fastlegal, you can get your one person company registration done in just 7-10 working days. We provide a comprehensive package that includes not only the registration process but also guidance through the entire process. This includes company name verification, filing of the documents, obtaining Director Identification Number and Digital Signature Certificate, getting the company registered with the Registrar of Companies, and more. Additionally, we also offer post-registration services like GST registration, filing of annual returns, and maintenance of statutory records.