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One Person Company

The concept of one Person Company in India was introduced through the companies’ act 2013 to support the entrepreneurs who on their own are capable of starting a venture by allowing them to create a single entry economic entity. One of the biggest advantages of OPC is that there can be only one member in an OPC while minimum of two members are required in incorporating and maintaining a private limited company or a limited liability partnership. Similar to a company, an OPC is a separate legal entity from its promoter offering limited liability protecting to its sole shareholder, while having continuity of business and being easy to incorporate. For instance, every OPC must nominate a nominee director in the MOA and AOA of the company who will become the owner of the OPC in the case of sole director is disabled. Also a one person company must be converted into a private limited company if it crosses an annual of ₹2 crores and must file the audited financial statements with ministry of corporate affairs at the end of each financial year like all types of companies.

Benefits

  1. Single Promoter:
  2. A corporate form of legal entity in One Person Company ensures that the business has perpetual existence and easy ownership transferability.
  3. Uninterrupted Existence:
  4. A company being a separate legal entity is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
  5. Easy Transferability:
  6. In One Person Company the ownership can be transferred by altering the shareholdings, directorship, and nominee director information.
  7. Borrowing Capacity:
  8. Banks and financial institutes prefers to provide funding to a company rather than partnership firms or proprietary concerns, however, a One Person Company cannot issue different types of equity security, as it can only be owned by one person at all times.
  9. Owning property:
  10. A company being an artificial person can acquire, own, enjoy and alienate, property in its name. the property owned by the company could be anything but the nominee director cannot claim any ownership of the company while serving as a nominee director.

Documents Required

The documents required from the director and shareholders are:

  1. Pan Card/Aadhar Card
  2. Voter ID/Passport / License
  3. Two passport photo
  4. Bank Statement- latest 3 month(Bank Pdf)
  5. Email, Mobile No, Profession , Qualification and Duration of stay at present address

Documents required of the proposed registered address are as follows:

  1. Electricity bill/Other Utility Bill of the proposed registered address
  2. NOC or rent agreement from the owner of the premises
  3. Even if the director is owner of the property NOC is needed from him
  4. Bank Statement- latest 3 month(Bank Pdf)
  5. Email, Mobile No, Profession , Qualification and Duration of stay at present address
  6. Note: Same document must requied for OPC nominee and All document must be scan from scanner with good quality.

Time

One Person Company registration process can be completed in around 10-14 working days after all document receive completely from customer as follows :-

  1. Preparation of documents – 2 days
  2. DSC Application – 1 day
  3. Name Approval through RUN – 1-2 days
  4. Filing of form – 2 days
  5. Approval – 8-10 days

FAQ's

No. As per the Act, Only Indian born citizens can form a One Person Company. Non-resident Indians or individuals who 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, Nominee of one OPC, cannot be a nominee of another OPC. In this event, the Nominee has to withdraw his membership from either of the OPCs within one hundred and eighty days.

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.

The Act has not made any restriction for a One Person Company to become a member of another Private Limited Company.

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

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

  • Obtain NOC from members and creditors of the Private Limited Company
  • Pass a Special Resolution for conversion
  • File Special Resolution in Form No. MGT.14 with ROC
  • File fees and application in Form No. INC.6 and supporting documents with ROC

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Address

B-4/193, Chitrakoot Scheme, Vaishali Nagar, Jaipur, Rajasthan-302021

Phone

+91-9119112929

E-mail

info[@]zumosun(dot)com