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One Person Company is a revolutionary concept and is a refinement of the structure of a sole proprietorship firm. Incorporation of OPCs encourages corporatization of micro businesses and entrepreneurships. Prior to the Companies Act, 2013 coming into effect, at least two shareholders were required to start a company. But, now the concept of One Person Company would provide tremendous opportunities for small businessmen and traders to do business as an enterprise and give them an opportunity to start their own ventures with a formal
Section 3(1)(c) lays down that one person company is a kind of private company and incorporated for any lawful purposes by a natural person. One person company shall have a minimum of one director. Therefore, a One Person Company will be registered as a private company with one member and one director. By virtue of section 3(2) of the Act, an OPC may be formed either as a company limited by shares or a company limited by guarantee; or an unlimited liability company.
Welcoming Moves in Union Budget 2021-22 for OPCs
Separate Legal Entity
OPC has a separate legal entity that distinguishes between the promoter and the company and is capable of doing everything that an entrepreneur would do.
The promoter’s liability is limited in an OPC, in the event of a default or legal issues, to the extent of the value of shares owned.
Easy Availability of Funds
OPC is a form of Private Company which can raise funds through venture capital, financial institutions, angel investors, etc. which Proprietorship will not be able to.
The Companies Act, 2013, provides certain privileges to the OPC pertaining to compliances, such as, an OPC need not prepare the cash flow statement. Further, the company secretary need not sign the books of accounts and annual returns and be signed only by the director. Minutes can be passed by the member easily by entering them into the minute book and signed by the sole member
Minimum Incorporation Requirements
One Shareholder Minimum One Director The director and shareholder can be the same person Minimum One Nominee
The proposed name selected by you should be unique and should not resemblethe name of an existing Company or Limited Liability Partnership. The words ‘‘One Person Company’’ shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved.
Share capital of a company is divided into four parts:
Director is a person appointed to the Board of a company. Board of Directors of a company are entitled to exercise all such powers and to do all such acts and things as the company is authorized to exercise and do except those which are specifically required to be exercised by a company in general meeting. One person company can appoint one director as the minimum number of directors in its Board.
Member and Nominee
Only a natural person who is an Indian citizen whether resident in India or otherwise:-
(a) shall be eligible to incorporate a One Person Company;
(b) shall be a nominee for the sole member of a One Person Company.
A natural person can be a member of only one “One Person Company”, at any point of time and the said person shall not be a nominee of more than one “One Person Company”. The subscriber to the memorandum of a One Person Company shall nominate a person, after
obtaining prior written consent of such person, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.
No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest
It is mandatory for every company to have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Registered office of the company must be situated in India.
Note 1: *Draft will be provided by our team
Note 2: In case of NRI Directors/subscribers, all the aforesaid documents should be notarized and apostilled or consularized. In case documents are not in english, translated copy in english should be notarized and apostiled or consularized. Please read the attestation requirements of documents below in FAQs
At Companies Next, we have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide a complete transparent and online platform for registration of One Person Company.
Our One Person Company Registration include:
No, As per Companies Act, 2013, only natural person who is an Indian citizen whether resident in India or otherwise shall be eligible register a One Person Company.
A person caanot incorporate more than one (1) One Person Company.
A subscriber to Memorandum of a One Person Company is required to nominate a person who shall become the member of the OPC in case on subscriber's death or his incapacity to contract. The person shall be appointed subject to his prior written consent to become a nominee.
Duly Adopdet Financial Statements of One Person Company needs to be filed with the Registrar of Companies (ROC), within 180 days of the closure of financial year.