One Person Company
“One Person Company is a type of business that gives permission to a single entrepreneur to run a corporate entity with limited liability protection.”
A Separate legal entity
OPC is a separate legal entity and is able to do everything that an entrepreneur would do.
More opportunities, Limited liability
One of the advantages of One Person Company is that it has more opportunities, and limited liability since the liability of the OPC is limited to the extent of the value of the share you hold, the individual could take more risk in business without affecting or suffering the loss of personal assets. It is the encouragement to new, young, and innovative start-ups.
Single owner
There will be only a single owner and hence it will be helpful in quick decision-making, controlling, and managing the business without following any elongated processes and methodologies as adopted in other companies. The sense of belonging inspires me to grow the business further.
Starting from INR,8,000/-
( inclusive of all taxes )*
Benefits of being a Small Scale Industries (SSI)
An OPC can avail of the various benefits provided to Small Scale Industries like the lower rate of interest on loans, easy funding from the bank without depositing any security to a certain limit, manifold benefits under Foreign Trade policy, and others. All these benefits can be boon to any business in the initial years.
Benefits under Income Tax Law
Any remuneration paid to the director will be allowed as a deduction as per income tax law, unlike a proprietorship. Other advantages of presumptive taxation are also available subject to the income tax act.
Receive interest on any late Payment
OPC avails all the benefits under Enterprises Development Act, 2006. The newly start-up OPC is micro, small, or medium, hence they are covered under this act. As per the Act, if the buyer or receiver receives any late payment (receives payment after a specified period), then he is entitled to receive interest which is three times the bank rate.
Requirement to incorporate a One Person company
- KYC Documents of the director who will also be the shareholder of the company.
- Only one director and shareholder
- Registered office address ( One important aspect is that the applicant can use a residential address as a registered office address)
Documents required for One person company
- PAN card of the company
- Registration Certificate of the company
- Memorandum of Association (MOA) /Articles of Association (AOA)
- PAN card, photograph, and aadhar card are required for all Directors
- Bank details- a copy of the cancelled cheque or bank statement
- Address proof of Principal place of business and all places of business:-
- Propriter office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
- Rented office – Rent agreement and No objection certificate from the owner
- Proof of appointment of authorized signatory- letter of authority
▪ Documents required for HUF
- PAN card of HUF
- Photograph, Pan Card, and adhar card of Karta
- Address proof of Principal place of business and all places of business:
- Propriter office – Copy of electricity bill/landline bill/ water bill/ municipal khata copy/ property tax receipt
- Rented office – Rent agreement and No objection certificate from the owner.
- Bank information- a copy of the cancelled cheque or bank statement
FAQ
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.
Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) – Simplified Proforma for Incorporating Company electronically (SPICe) – with eMoA (INC-33), eAOA (INC-34).
In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
The OPC shall inform RoC in form INC-5, if the threshold limits is exceeded and is required to be converted into private or public company.
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
