One person company registration

The idea for an one person company was floated in 2005 by the team of expert headed by Dr. J. J. Irani and incorporated as a law under the Companies Act of 2013. With the law categorically stating that, 'One Person Company means a company which has only one member, ' it offers an ideal opportunity for startup ventures to function as a legal entity.

However, only natural born Indians are entitled to form and register an OPC. No individual can operate more than 5 such businesses at the same time.

It is a relatively novel concept where a single person has the entire control of the business. However, there are no share holders for the business. The liabilities are at a minimum too making it the number one choice of young entrepreneurs who are hoping to gain a foothold in the business world. The owner doubles up as the director here while the second person is a nominee director with absolutely no power except when the director is incapable of functioning properly. Furthermore, the OPC needs to be converted into a ‘Private Limited Company’ if turnover exceeds 50 lakhs or a ‘Public Limited’ if it has an average turnover exceeding 2 crore.

Requirements for Registration

• A single member (who can be the Director too)
• A member who is considered to be a nominee (can act as a director as well)
• Must be a natural citizen who is a resident of the country for 182 days at least the year before
• Must possess a bank account for the company
• Must appoint an auditor for preparing the financial statement and conduct an audit

Advantages of  OPC Registration?

• It can continue to exist and does not face issues with death or exodus of other members. The business can go on indefinitely even when the ownership changes hands.
  
• Transference of the company is exceedingly simple as you only have to alter the information pertaining to the sole owner as well as the nominee director without any trouble whatsoever.
  
• Financial Institutions are more willing to fund a one man company instead of a partnership or proprietorship firm.
  
• You are legally entitled to purchase, disburse, and add assets or property in the name of the company. The nominee director does not have any legal claim to it.
  
• Does not  have to comply with too many regulations
  
• Minimum paperwork/documentation required
  

Taxation Rules for OPC

• It is mandatory to file Income Tax Returns
• TDS to be filled on a quarterly basis mentioning the TAN. Deducting tax at source is compulsory, if the company has employees.
• Obtaining an ESI registration is mandatory by law, if the OPC employs more than 10 persons.
• Filing of VAT and/or service tax returns is required for OPC with valid registrations.

Documents required for Director are

• Self attested PAN card (2 copies) ( attested by gazetted officer or bank manager)
• Self attested Address Proof (Aadhaar card/Driving License/Passport/Voters ID) (2 copies)  (attested by gazetted officer or bank manager)
• 5 Latest passport size Photographs of proposed Director
• Self attested residential Proof (Bank Statement/Telephone Bill)
• Rental agreement/ Sale Deed/Tax paid Receipt and utility bill (not older than one month)
• NOC

Documents required for Nominee are

• Self attested PAN card 
• Self attested Address Proof (Aadhaar card/Driving License/Passport/Voters ID) 
• Bank Statement -2 months (self attested)
• 3 Latest passport size Photographs

Provide us the 5 names for the Company to check Name Availability.
Nature of Business

You will get the documents after registration of your company

• Digital Signature for 1 Director
• Company PAN Card
• DIN for 1 Director
• Incorporation Certificate
• Company TAN/TDS Number
• MOA & AOA