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 -
Mandatory Documents For OPC Registration
To be given by the director of one person company
- Scanned passport size photograph
- Scanned copy of passport, voter’s ID card or driving license (Self – attested)
- Scanned copy of passport or PAN card (Notarized without fail in case of foreign nationals & NRI’S)
- Scanned copy of electricity bill or water bill or gas bill or mobile bill or current bank account statement (Self-attested)
- Specimen signature or thumb impression (Blank document with signature)
Documents necessary in support of registered office
- Scanned copy of property papers printed in English (In case the property is owned)
- Scanned copy of rent agreement written in English language.
- Scanned copy of NOC from the land owner
- Scanned copy of electricity bill or water bill or gas bill or mobile bill or current bank account statement.
- Specimen signature or thumb impression (Blank document with signature)
Step By Step Procedure for One Person Company Registration
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.
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.
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”.
Documents submission
All the essential papers are created by us and then filed with ROC on your behalf.
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.
Issuance of Certificate of Incorporation
After completing the verification procedure, ROC issues the certificate of incorporation for the commencement of the business.
Mandatory Compliance of One Person Company
- Income Tax Fillings : Every One Person Company has to mandatorily file income Tax return.
- GST Fillings : A One Person Company registered under GST has to mandatorily file GST returns monthly, quarterly, annually.
- TDS Fillings : A One Person Company who has TAN must quarterly file TDS returns and issue TDS certificates to the person whose TDS has been deducted.
- Professional Tax Returns : A One Person Company who has employed even a single employee whose salary is above the prescribed limit is required to deduct PT and file its returns.
- EPF and ESIC Returns : A One Person Company who has registered with ESIC and EPF has to mandatorily file returns.
- Accounting : Books of Accounts are required to be maintained if the income from Business or Profession exceeds Rs. 1,50,000/- or the Total Sales / Turnover / Gross receipts exceeds Rs. 2,50,000/-
- Audit : As per Companies Act One Person Company is mandatorily required to do statutory Audit.
- Annual General Meetings : One Person Company is not required to hold annual general meeting.
- Board Meetings : A One Person Company may conduct at least one meeting of the Board of Directors in each half of a calendar year and the gap between the two meetings shall not be less than ninety days.
- ROC Compliance : One Person Company need to file their annual returns (Form MGT 7 ) to ROC within 60 days of Annual General Meeting and Financial statement (Form AOC 4 ) within 30 days from the last day of AGM.