Overview

A One-Person Company (OPC) is a type of company that can be incorporated in India with just one member or shareholder. The concept of OPC was introduced in India through the Companies Act, 2013, to encourage entrepreneurship and promote self-employment among individuals who may not have partners to start a business. Under an OPC, a single person can be the sole director and shareholder of the company. The liability of the shareholder is limited to the extent of the unpaid amount of share capital subscribed by him/her. This means that the personal assets of the shareholder are protected in case of any losses or debts incurred by the company. The Companies Act, 2013, provides for the formation of OPCs under Section 2(62) read with Rule 3 of the Companies (Incorporation) Rules, 2014. As per the rules, only a natural person who is an Indian citizen and resident in India can form an OPC. Also, a person cannot incorporate more than one OPC or become a nominee in more than one such company.

Benefits

Some of the benefits of a one-person company in India are:

• Limited Liability: The liability of the owner is limited to the extent of his/her investment in the company. In case of any financial loss or legal issues, the personal assets of the owner are not at risk.
• Single Ownership: A one-person company is owned and managed by a single person, who has complete control over the operations and decision-making process of the company.
• Easy to Set up: The process of setting up a one-person company is simple and requires fewer formalities compared to other forms of business entities like private limited companies.
• Better Access to Funding: A one-person company is eligible to avail of funding from various sources, including banks and financial institutions.
• Tax Benefits: One-person companies enjoy various tax benefits, including lower tax rates, tax deductions, and exemptions.
• Perpetual Succession: One-person companies have perpetual succession, meaning that the company continues to exist even after the owner's death.
• Professional Image: A one-person company gives a more professional image to the business, which helps in building trust and credibility among customers and stakeholders.
• Limited Compliance: The compliance requirements for a one-person company are relatively lower, making it easier to maintain and manage the company's operations.

Required Documents

The following are the documents required for One Person Company (OPC) registration in India:

Note: All the documents must be self-attested by the Director and the Nominee.

• Identity Proof: PAN Card, Passport, Voter ID, Driving License, or Aadhaar Card of the Director.
• Address Proof: Bank Statement or Passbook, Telephone Bill, Mobile Bill, Electricity Bill, or any Utility Bill of the Director.
• Passport-size photograph of the Director.
• Consent of the nominee in Form No.INC-3.
• PAN Card of the Nominee.
• Address Proof of the Nominee: Bank Statement or Passbook, Telephone Bill, Mobile Bill, Electricity Bill, or any Utility Bill of the Nominee.

Registration Process

The step-by-step process for registering a One-Person Company (OPC) in India is as follows:

Why approach LAWYASA?

• Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
• Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
• Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
• Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
• Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and we will keep you informed throughout the entire legal process.

How can LAWYASA assist?

Lawyasa can provide end-to-end support and assistance in the OPC registration process in India. Our services include:

• : Understanding your business requirements and advising on the most suitable type of company registration.
• : Preparation of documents required for OPC registration, such as the Memorandum and Articles of Association, PAN card, identity proof, address proof, etc.
• : Filing of OPC registration application with the Ministry of Corporate Affairs (MCA).
• : Assistance in obtaining the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the director of the OPC.
• : Regular updates and follow-ups on the registration process until the issuance of the certificate of incorporation.
• : Advising on annual compliances and providing assistance in fulfilling them.

Frequently Asked Questions