One Person Company

One Person Company (OPC) Rs. 5,899/- + Govt. Fees No hidden Charges Duration : 7 - 10 Days

The One Person Company (OPC) was recently introduced as a strong improvement over thesole proprietorship. It gives a single promoter full control over the company while limitinghis/her liability to contributions to the business. This person will be the only director andshareholder (there is a nominee director, but with no power until the original director isincapable of entering into contract). So there's no chance of raising equity funding or offeringemployee stock options.

DOCUMENTS OF DIRECTOR

  • PAN Card or Passport (Foreign Nationals & NRIs)
  • Voter’s ID/Passport/Driver’s License
  • Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • passport-sized photograph
  • Specimen signature

DOCUMENTS FOR THE REGISTERED OFFICE

  • Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Notarised Rental Agreement in English
  • No-objection Certificate from the property owner
  • Sale Deed/Property Deed in English (in case of owned property)

Frequently Asked Question

There is no difference in capital requirement between an OPC and a private limited company. Itneeds an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to bepaid-up. This means that you don’t really need to invest any money into the business.
No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum alternate tax.
An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you've invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.
No. As per the Act, Only Indian born citizens can form a One Person Company. Non-resident Indians or individualswho do not reside in India for over 182 days cannot incorporate a OPC.

No, FDI is not allowed for One Person Company, if it is, then it will lose its One Person Company status.

As per the Act, the average annual turnover during the relevant period should not exceed Rs. 2 Crores. If it exceeds,then the company automatically get converted to a Private Limited Company.

There is no any restriction for a One Person Company to become a member of another Private Limited Company.

As per Act, The OPC cannot carry business of Non Banking Financial Investment activity including investment in security of any corporate.

It is not mandatory to appoint a Company Secretary in OPC and hence the annual return of OPC companies can be signed by the Director.

  • The paid-up capital should not exceed Rs. 50 Lakhs
  • The average annual turnover of the private company for three years should not exceed Rs.2 Crore

A One person company can be converted to a Public Limited Company; however a public limited company cannot be converted to an OPC