One Person Company

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ONE PERSON COMPANY (OPC)

One Person Company or OPC means a company which has only one person as a member.

An OPC is classified as a private company under Companies Act. OPC has all benefits of a private limited company such as protecting personal assets from business liability, separate legal entity and perpetual succession. One Person Company (OPC) is a Company registered with ONLY ONE PERSON as its shareholder.

A One Person Company can have owned by Only a natural person who is Resident in India and Citizen of India. No corporate entity can be as shareholder (owner) of a One Person Company.

There is no minimum or maximum paid-up capital restriction for One Person Company. It can be converted into private limited or public limited at any time.

One Person Company is not allowed to take any partner (Shareholder). But, OPC can convert into private limited or public limited and add partners(shareholders).

COMPANY NAME

The name of a OPC shall end with the words ‘(OPC) Private Limited’. Proposed Company Name shall comply with the Company Name Availability Guidelines under Companies Act 2013

There are TWO ways for reserving a name for a New One Person Company.

a. RUN (Reserve Unique Name) is an easy and web-based application for reservation of a Company Name. The name approved under RUN Process is valid for a period of 20 days from the date of approval. In one application, Two names can be submitted for approval under RUN process. If the application is rejected, the another Two more names can be submitted again. If that also rejeccted by ROC offce, a fresh application to be fiiled with fresh filing fee.

b. SPICe (Simplified Proforma for Incorporating Company Electronically) Incorporation Filing process is an integrated single point application for Reservation of Company Name, Allotment of DIN for Directors and Incorporation of a New Company along with allotment of Permanent Account Number (PAN) and Tax Collection and Deduction Number (TAN) to the New Company. Under SPICe application, only ONE name can be submitted for approval.

SHARE CAPITAL

There is no minimum capital (Authorised or Paid-up Capital) requirement for registering an OPC.

The registration fee payable to the Registrar of companies depends on the different slabs of Authorised capital of the company.

The First Shareholder must bring the subscribed capital to the Company with in 60 days of Company Incorporation and the Company must issue share certificates to the subscribers.

REGISTERED OFFICE ADDRESS

Registered Office refers to the official correspondence address of a company or its principal place of business. The address of the Registered Office will be used for all official communications of the company.

WHO CAN REGISTER OPC?

Only a natural person who is an Indian citizen who is resident in India or otherwise not less than 120 days during the last days during the immediately preceding financial year.

HOW MANY OPC ONE PER CAN CREATE?

As per the rules, one person can create only ONE OPC and can be nominee in another OPC.

One Person Company Registration – Requirements
Select Company Registration Package
Complete Online E-Lawyering Interview
Generate Registration Documents Online and Execute it
File Company Formation Documents with ROC
ROC will Issue the Certificate of Incorporation
How to Register a One Person Company (OPC) in India – Steps
Select Packages and place order with CompaniesInn
You will be directed to India’s First and the State of the Art E-Lawyering Interview by CompaniesInn . Complete the online Interview and generate Company Registration Documents for execution by Shareholders and Directors.

Submit Executed documents to CompaniesInn
Execute the documents by Shareholder, Nominee Shareholder and Director(s) and submit to CompaniesInn with supporting such as Identity and Address documents, Registerd office Adress Proof and NOC and other additional documents.

RUN Application (Optional)
RUN (Reserve Unique Name) is a web-based application for reserving the Company Name.

The name approved under RUN Process is valid for a period of 20 days from the date of approval. Company Incorporation documents are to be filed within the validity period of Company Name.

Filing of Company Incorporation Documents with MCA
Company Registration filing consists of preparation and filing of the flowing E-Forms:

1. e-Form INC-32 – SPICe Application

2. e-Form INC-33: e-Memorandum of Association (SPICe MoA)

3. e-Form INC-34: e-Articles of Association (SPICe AoA)

All the documents executed and attested as per documentation requirements has to be attached to the e-Form INC-32 / 33/ 34 and the e-Forms to be digitally signed with the Digital Signature Certificate (DSC) of all the proposed shareholders /representatives.

Verification by the Central Registrar of Companies (CRC)
The CRC verifies the application and if found the documents are in order, the Central Registrar of Companies shall register the Company and issue the following:

1. Company Incorporation Certificate

2. DIN for Directors

3. Permanent Account Number (PAN)

4. Tax Collection and Deduction Number (TAN) to the New Company.

Documents Required
Documents to be Signed by the NOMINEE SHAREHOLDER
Consent of Nominee Form No. INC-3.
Documents to be Signed by all DIRECTORS
Consent to Act as Director: Form DIR-2
Details/Information for DIN
Declaration of DIN (If DIN is allotted already)
Registered Office – ADDRESS
Address Proof
No-Objection Letter from the owner of the Property
Additional Documents
The following documents are required on case to case basis:

NOC for Use of Name from Trademark owner
Resolution and NOC from an existing Company / LLP for user of similar names
Declaration for complying sectoral regulatory compliances
ID&Address from Shareholder, Nominee Shareholder and Director(s)
Shareholder, Nominee Shareholder and Director(s) have to submit Identity Proof and Latest address proof

Acceptable Documents

Primary ID – Permanent Account Number (PAN)
Additional ID – Aadhaar Card or
Passport or
Driving License or
Voter Identity Card
Latest Address Proof: Telephone Bill or
Electricity Bill or
Bank Statement or
Bank Passbook with latest entries
Documents to be Signed by the SHAREHOLDER
Shareholder to sign the folliwing documents:

Application for Digital Signature Certificate (DSC)
Declaration by Subscribers & Director: INC-9
Advantages of One Person Company
Busines Credibiity

An OPC, being limited company will have more business credibiility than a Proprietorship.

Limited Liability

Like any other incorporated business, a limited company is a limited liability organization. The owner’s liability is limited to the extent of shares held in the company and ends once he pays for the shares.

Protection of Personal Assets to owners

Since the liability of owner is limited, the personal assets of the shrehodler is protected against business risk as the company’s liability is not the owner’s liability.

Perpetual Existence

Assets and liabilities of a company belongs to itself and do not belong to the shareholders. Hence, the company will continue to be in existence even if the owner changes

Can sue and be sued

A limited company is like an artificial person created by law. Like any other person, it can sue and be sued before the court of law. This means that if a company defaults, others can take legal action against the company and likewise, the company can tak

FAQs on One Person Company Registration

Directors Identification Number (DIN) is an identification number issued by the Ministry of Corporate Affairs, Government of India, to Directors of a company or Designated Partners of an LLP.
 
 
 
 
New DIN will be allotted to a Director / Designated Partner while registeting a Company or LLP. Also, an Company / LLP can apply for a DIN for a proposed Director / Designated Partner.
 
 
 
 
 
ONE Person who is an Indian National and resident in India can register an OPC. Also it requires another person as Nominee Shareholder. So, in effect you need TWO People for registering an OPC. The Primary Shareholer can also be a Director.
 
 
 
 
 
New DIN will be allotted to a Director / Designated Partner while registeting a Company or LLP. Also, an Company / LLP can apply for a DIN for a proposed Director / Designated Partner.
 
 
 
 
 
An India National (Individal), who is resident in India can only become a Shareholder or Nominee Shareholde in an OPC. Foreign Nationals, Non Resident Indians, Companies and LLPs cannot become a Shareholder or Nominee Shareholde in an OPC.
 
 
Only individuals can become directors of the company. There is no restrictions for Foreign Nationals or Non Resident Indians to become a director of an OPC.
 
 
A Person can register only ONE OPC. Also a person can not become nominee in more than one OPC.
 
 
 
 
 
 
 
MOA is the charter document of a company. A company is created by registering a memorandum. MOA contains the name of a company, the state in which the registered office of the company is located, objectives, and its authorised capital. The MOA will be subscribed by the initial promoters of the company in their own handwriting. They will also have to write their name, father's name, residential address, occupation and the number of shares they agree to subscribe in the company. The MOA should also bear the signature of the witness who knows the subscribers.
 
 
 
 
 
 
AOA contains rules and regulations for the management of a company's internal affairs and conduct of its business. It defines the relationship of company between its members and directors and relation between members and directors. It also describes powers of directors. Further, the AOA describes the rights and duties of its members as well as the duties and responsibilities of its directors. In case of a private limited company, the AOA will contain the restrictions of transfer of shares, if any. Also, AOA usually contains the names of first directors of a company. The AOA will be subscribed by the initial promoters of the company in their own handwriting. Promoters will have to write their names, father's name, residential address, and occupation. The AOA should also bear the signature of the witness who knows the subscribers.
 
 
 
 
 
 
 
The details of subscribers to the MOA & AOA cannot be amended or changed at any point of time during the life of the company, as it constitutes the document giving birth to a company. Subsequent changes in the shareholding or directorship of the company should be reflected in its internal records and will not affect the subscriber details in the MOA & AOA
 
 
 
 
 
 
 
The details of subscribers to the MOA & AOA cannot be amended or changed at any point of time during the life of the company, as it constitutes the document giving birth to a company. Subsequent changes in the shareholding or directorship of the company should be reflected in its internal records and will not affect the subscriber details in the MOA & AOA
 
 
 
 
 
 
 

Acknowledgment

A statement, written or oral, made before a person authorised by law to administer oaths (such as a notary public).

Employment agreement

An agreement between an employer and an employee. This differs from other agreements, in that it is governed by employment law, which may take precedence over standard contract law.

Dissolution

The termination of a partnership.

General partner

A partner in a limited partnership who has authority to engage in operating the business.

Instrument

A legal term for a document.

Partnership at will

A partnership in which the partners have not agreed to remain partners until the expiration of a definite term or the completion of a particular undertaking.

Registered office

The official address of the company, as designated with the secretary of state. Any documents delivered to this address are considered to be legally served by the company.

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