One Person Company
According to the Companies Act, 1956, Minimum 7 members are required to incorporate a Public limited company while only 2 members are needed to register a private limited company. As per provision of section 2(62) of the companies act, 2013, one can start a one-person company in India that requires only one member to form a legal entity. The main benefit of forming a one-person company is that it is a separate legal entity that provides legal protection to the shareholders in the form of limited liability. All those provisions which are applicable to private companies are also applicable to the one person company (OPC)
How to Form a One Person Company
According to the Rule 3 of the Companies (Incorporation) act, 2014, the one person company member should be an Indian citizen and a resident of India. He/she should not be a minor. Resident of India means a person who lives in India for a time period of at least 182 days in a financial year.
A natural person means a normal person. It is not an entity such as a HUF, a corporate body, a partnership firm, or a sole proprietorship. A foreign citizen or non-resident Indian is not allowed to make an OPC in India. Minimum one director is required for the formation of an OPC. It must have one promoter also. Director & promoter can be the same person. As per rule 3 of companies (incorporation) rules, 2014, a person is not eligible to become a member or a nominee of more than one OPC.

It is very essential to choose the nominee of a member of an OPC. The consent of the nominee is required in a written form. A nominee can only take up the charge and become the member of the company, if the member is died or incapable of contract.

Advantages of One Person Company Registration in India

OPC Registration is necessary because of the following reasons -

Limited Liability

It provides legal protection to its members in the form of limited liability.

Separate Legal Entity

It is a separate legal entity distinct from its members. It is separate at law from its directors, shareholders, promoters and subject to certain rights, rules, regulations, duties & obligations.

Uninterrupted Existence

One person company enjoys the benefit of perpetual succession as it continues to exist till it is legally resolved. Its existence is unaffected by the death of any of its members or ownership change.

Borrowing Capacity

One person company can borrow money from the lenders which totally depends upon its current financial position.

Minimal Paperwork

One Person Company has less compliance requirements as compared to other companies.

Mandatory Documents For OPC Registration
To be given by the director of one person company
Documents necessary in support of registered office
Step By Step Procedure for One Person Company Registration
Fill out registration form
Fill out registration form
You have to fill up our easy-to-use business registration form and submit the required documents to register your business.
Fill out registration form
Obtain DIN
Obtain DIN
Second step to form a one person company is to get the Digital Signature Certificate (DSC) of the director of the company and DIN. A person who wants to form a one person company needs to apply for a director’s identification number via form DIR – 3 along with name & address proof of the director.
Obtain DIN
Choosing the name of the proposed company
Choosing the name of the proposed company
The promoter of one person company (OPC) needs to apply for the company name via E form INC 1 and has to submit the same to the registrar of companies for incorporation. You need to pay rupees 1,000 via debit card or net banking to complete the payment process. For example – Name of the OPC can be “ABC (OPC) Private limited”.
Choosing the name of the proposed company
Documents submission
Documents submission
All the essential papers are created by us and then filed with ROC on your behalf.
Documents submission
Approval or Filling of forms with Ministry of Corporate Affairs
Approval or Filling of forms with Ministry of Corporate Affairs
All the documents will be attached to Articles of Association (AOA), Memorandum of association(MOA) and SPICe form along with the digital signature certificate of the director. All these documents will be uploaded on the website of ministry of corporate affairs for approval.
Approval or Filling of forms with Ministry of Corporate Affairs
Issuance of Certificate of Incorporation
Issuance of Certificate of Incorporation
After completing the verification procedure, ROC issues the certificate of incorporation for the commencement of the business.
Issuance of Certificate of Incorporation
Mandatory Compliance of One Person Company
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