One Person Company Registration - Online Process
It is a legal entity that offers limited liability protection to the owner while enabling them to have full control over the business.
In an OPC, the business owner is considered as both the director and shareholder of the company. This means that they have complete control over the company’s operations, and they are also responsible for its liabilities.
OPCs are a good option for individuals who are running a business on their own, and want to keep their personal assets separate from their business liabilities.They are also eligible for certain tax benefits and incentives that are offered by the government to promote entrepreneurship.
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One Person company registration starting from Rs.8,000/-
One Person Company Registration
One person company registration means where there is only one person who is a member of the company. A person who is a member of a company can’t be a member of another OPC. OPC has the same separate legal entity as other companies. A member whose name entered in AOA shall be the first director of a company.
An OPC can convert itself into another type’s company i.e. Private Company, Public Company except for section 8 company. An one person company registration can’t convert itself in another type of company up to 2 years from the date of incorporation except an OPC whose paid-up share capital increased from 50 lac and Annual turnover increased from 2 Crore then company must require to convert itself either in private and public company, as the case may be within 6 months from the relevant date.
One person company registration is not required to include a cash flow statement in its financial statement. OPC no need to hold any AGM. The financial statement can be signed by only one director. If CS does not exist in company then the Annual return can be signed by the director himself.
An OPC is required to hold at least one Board meeting in each half calendar year and the gap between two Board meetings should be at least 90 Days.
For incorporation of a one person company registration SPICe, SPICe MOA, SPICe AOA, INC-3 is to be a file with ROC.
Basic Features to Read before starting One Person Company Firm Registration:
About one person company registration
A.
Only One Shareholder:Only a natural person, who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company. Explanation: The term “Resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
B.
Nominee for the ShareholderThe Shareholder shall nominate another person who shall become the shareholders in case of death/incapacity of the original shareholder. Such nominee shall give his/her consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and resident in India shall be a nominee for the sole member of a One Person Company.
C.
DirectorMust have a minimum of One Director, the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15 directors.
Terms and Restrictions of OPC
- A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company.
- Minor cannot become member or nominee of the One Person Company or can hold share with beneficial interest.
- An OPC cannot be incorporated or converted into a company under Section 8 of the Act. [Company not for Profit].
- An OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
- OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except its paid-up share capital exceeds Rs.50 Lakhs or its average annual turnover during the relevant period exceeds Rs.2 Crores, i.e. if paid-up capital of the company crosses Rs.50 Lakhs or the average annual turnover during the relevant period exceeds Rs.2 Crores, then the OPC has to invariably file forms with the ROC for conversion into a Private or Public Company, within a period of six months on breaching the above threshold limits.
Steps to Incorporate One Person Company (OPC)
- Obtain Digital Signature Certificate [DSC] for the proposed Director(s).
- Obtain Director Identification Number [DIN] for the proposed director(s).
- Select suitable Company Name, and make an application to the Ministry of Corporate Office for the availability of name.
- Draft Memorandum of Association and Articles of Association [MOA & AOA].
- Sign and file various documents including MOA & AOA with the Registrar of Companies electronically.
- Payment of Requisite fee to the Ministry of Corporate Affairs and also Stamp Duty.
- Scrutiny of documents at Registrar of Companies [ROC].
- Receipt of Certificate of Registration/Incorporation from ROC.
Advantages
- One person company have a separate legal entity.
- In one person company, it is easy to increase capital by financial institutes and by investors.
- One person company have limited liability of members.
- In one person company, only one director is required to start a company.
Disadvantages
- In one person company no outsider can invest in company.
- A member of One Person Company cannot become a nominee of some other company.
- A minor cannot be a part of One Person Company.
- OPC cannot be converted into section 8 companies.
- File annual return of OPC in Form-MGT-7 within 180 days from the closure of the financial year.
- Form- DIR-8 required for disclosure of non disqualification file in each financial year.
- Every Director shall disclose their interest in any entity, MBP-1 required to submit if there is change in interest.
- All Directors shall file Form DIR-3 on or before 30th
- Return of deposit to be filed in Form DPT-3 on or before 30 June every year.
- In Form AOC-4, to file Financial Statements of company.
- Auditor appointed for five years in Form ADT-1 within 15 days from general meeting.
- ID Proof of the nominee and the member: The documents required for this evidence can be Aadhar card/passport/ Voter ID or Driving License.
- Latest (Last 2 months) Telephone bill/Electricity bill/Bank Statement of Member for Member’s Address Proof.
- PAN card copy of the nominee and the member.
- Passport size photo of member.
- Latest (Last 2 months) Telephone bill/Electricity bill of the Registered Office Address.
A one person company registration can convert itself in other type’s company i.e. Private Company, Public Company except for section 8 company. An OPC can’t convert itself in other type of company up to 2 years from the date of incorporation except an OPC whose paid-up share capital increased from 50 lakhs or average annual turnover increased from 2 Crores then company must require to convert itself either in private or public company, as the case may be within 6 months from the relevant date.
FREQUENTLY ASKED QUESTIONS ON ONE PERSON COMPANY
1. How many members are required to start a One Person Company?
Ans. In One Person Company only one member is required to start a company.
2. How much capital required to start a One Person Company?
Ans. There is no minimum capital required to start a One Person Company.
3. Is One Person Company convert into another companies?
Ans. yes, one person company mandatorily required to convert into private company/ public company (except section 8 company) when it has paid up share capital exceedsRs 50 lakh or average annual turnover exceeds Rs. 2 crore.On the other hand, OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company.
4. Differences between One Person Company V/S proprietorship?
Ans. There is separate legal entity in One Person Company whereas in proprietorship there is no separate legal entity. In one person company there is a limit of members whereas in sole proprietorship there is no limit of members. In one person company there is mandatory to have 1 nominee where as in sole proprietorship it is not mandatory to have nominee. One person company have compulsory to register whereas in sole proprietorship it is not necessary to register.
5. Why people start One Person Company?
Ans. A person start one person company because in one person company there is no minimum capital required. It is easy to form. For start a one person company only one person required, no need of partners. One person company have separate legal entity.
6. What is the limit of members to invest in One Person Company?
Ans. The member of one person company cannot invest exceed RS.50 lakh.
7. What are the important documents to start a One Person Company?
Ans. The important documents which are required for start One Person Company is MOA, AOA, AADHAR CARD, PAN CARD, ADDRESS PROOF.
8. How to register one person company?
ANS. It is very easy for register one person company, the process for register OPC is:
- A owner apply for Digital Signature Certificate(DSC)
- A owner apply for Director Identification Number(DIN)which is important to all the director of company.
- After these 2 steps, we apply for name of company.
- Upload all the documents to the MCA site for filling form with MCA
- After complete all these steps a registrar of company should be the instead of registrar company.
ONE YEAR PACKAGE FOR ONE PERSON COMPANY
Incorporation Company Fees only 8000/-
₹8,000/-
-Company Incorporation
-Memorandum and Articles
-DIN and DSC
-Consent of Directors
-PAN and TAN
₹18,000/-
-Company Incorporation
-Memorandum and Articles
-DIN and DSC
-Consent of Directors
-PAN and TAN
-First Board Minutes
-First ROC Annual Filing
-1 Year minutes
-1st Year IT Filing
-1st Year Director KYC
-MSME Registration
₹25,000/-
-Company Incorporation
-Memorandum and Articles
-DIN and DSC
-Consent of Directors
-PAN and TAN
-First Board Minutes
-First ROC Annual Filing
-GST Registration
-1 Year minutes
-1st Year IT Filing
-1st Year Director KYC
-MSME Registration
-12 Months GST Filing
-1st Year Directors Report
-1st Year GST Filing.
₹44,500/-
-Company Incorporation
-Memorandum and Articles
-DIN and DSC
-Consent of Directors
-PAN and TAN
-First Board Minutes
-First ROC Annual Filing
-GST Registration
-1 Year minutes
-1st Year IT Filing
-1st Year Director KYC
-MSME Registration
-12 Months GST Filing
-1st Year Directors Report
-1st Year GST Filing
-TDS return filing
-Financial Statements
-Appointment of Auditor/Director
Note for One person Company
- No hidden charges! Above fees are based on present regulations of State Government and Central Government if Capital of the company is up to Rs.15 lakhs. If Capital of Company is more than 15 Lakhs than Govt Fees, Stamp charges and MOA and AOA fees as per statutory laws will be applicable in addition to above price.
- Audit fees Charges will be applicable as the case may be in accordance of statutory law.
- Above prices is illustrative in nature and it will be very depends on the nature of business and number of transactions of business.
Following registered persons not required to file GSTR 1, 2 and 3 such as:
Goods and Services Tax (GST) is an indirect tax applicable on the supply of goods and services. It is a comprehensive, multistage, destination based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.
Documents attach in trademark application:-
A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.
Some basic information about Income tax
An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.
Basic Features to Read before starting private limited company
Private company is required to add the word “Private limited” or “Pvt. Ltd.” to end of its name. Private company should have at least two member and two directors. Private company have right to issue debentures to any number of persons.
Features of Public Limited Company
MCA provides the facility for incorporation of public limited company. For incorporation, firstly apply for name through RUN (Reserve Unique Name) on MCA portal. After availability of name from ROC we should file incorporation form i.e. Spice 32, INC 33(for eMOA), INC 34(for eAOA), .
