Online One Person Company Registration in India - Process, Cost, Form & Procedure (2020)| Onfiling
For Indians

One Person Company Registration

Overview

What is One Person Company in India?

Companies Act 2013 has introduced a new concept of “One Person Company”(OPC). It is formed with only one person as its member. Such companies enjoy certain privileges or exemptions as compared to other companies. Under section 2(62) One Person Company is defined as a 

“One Person Company” means a company which has only one person as a member. This Company is suitable for small businesses where the turnover is not likely to cross Rs. 2 Crores and the maximum amount of capital to be invested is limited to Rs. 50 Lac. 

Can OPC have more than one director? 

An OPC can have more than one director. However one of them must be an Indian Resident. Limitation of OPC is that only an Indian Citizen can open an OPC Company and FDI is not allowed in One Person Company.

Mandatory Compliances of One person Company

It is necessary to maintain the required compliance according to the Income Tax Act and Companies Act. Following are the list of Compliances for OPC:
1. GST Filing
According to the GST laws, one person companies having GST registration would be required to file monthly, quarterly and annual GST returns.
2.  Income Tax and Annual Return
In the case of one person company all income tax filing and annual return filing must be completed before 30th September of each financial year.
3. ESI Return
ESI return for one person company having ESI registration must be filed. ESI registration is necessary to file once the one person company employs over 10 employees.
4. TDS Filing
One person company having TAN is required to deduct tax at source quarterly as per the rules of TDS.
5. Service TAX or VAT  
If the one person company has service tax or VAT registration, then it must file the service tax or VAT returns. Service tax returns are filed half-yearly and VAT return due date changes from state to state.

The salient features of One Person Company form of organization are as under:

Incorporation

It can be incorporated as a private limited company only.

One Member

It can have only one member at any point of time and the number of a shareholder cannot go beyond one.

Number of Directors

It may have only one director and a maximum number of directors is 15.

Name of the Company

“One Person Company” words must be mentioned in brackets below the name of the company.

Board Meetings

Holding Board Meetings is an exemption to this form of company.

Advantages

  • Separate Legal Entity
  • One Person Company holds a separate legal entity from it’s member.

  • Limited Liability
  • Limited liability since the liability of the OPC are limited to the extent of the value of the share held by Shareholder.

  • Minimum Requirements
  • • Minimum 1 Shareholder

    • Minimum 1 Director

    • The director and shareholder can be the same person

    • Minimum 1 Nominee

    • The Letters ‘OPC’ must be suffixed with the name of OPCs to distinguish it from other companies

  • Benefits of being a Small Scale Industries (SSI)
  • Various benefits are provided to OPC as it is included in Small Scale Industries

  • Receive Interest on any late Payment
  • It can avail all the benefits under Enterprises Development Act, 2006. As OPC is micro, small, or medium; hence they are covered under this act.

  • Increased Trust and Prestige
  • Business entity in the form of the company always enjoys an increased trust and prestige.

Disadvantages

  • Compliance Burden
  • OPC focuses on various functional and core areas, OPC have to face a little burden as compared to private limited companies.

  • Annual Return Filing
  • Annual return of OPC is compulsorily signed by a director. It is generally not allowed to receive mandatory requirement of company secretary signature.

  • High Tax Rate
  • In the case of One Person Company, Fixed Rate directly charged to the income tax. It is a big disadvantage of one Person Company.

  • Limited share capital & Turnover
  • Limited Share Capital and Turnover for One Person Company.

DIGITAL SIGNATURE

The application process starts with the issuance of the digital signature of class-2 for the sole promoter and the nominee for processing the incorporation.

COMPANY NAME APPROVAL

The Company must be incorporated with a unique and new name that should not be similar to an already registered company. This application for name reservation is submitted to the MCA and the name of the OPC must end or include the words OPC.

 INCORPORATION 

The next step after obtaining the name approval is incorporation application to be filed with MCA in Form INC-3. In this application signed MOA and AOA are to be attached and on filing, for incorporation application, the approval is granted by the Registrar of Companies (ROC).

 COMMENCEMENT OF BUSINESS

After completing the above step, the incorporation certificate is obtained and the one person company can now proceed for opening the bank account. Then the promoter must deposit the amount mentioned in the MOA of the company. Company can file for the commencement of business after depositing the amount in bank and the certificate for commencement of business must be obtained within 180 days of incorporation.

 
Shops & Establishment Registration

Every shop and the commercial establishment are required to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India.

Trade License

No one should be adversely affected by health hazard and nuisance by the improper carrying of trade a License is necessary from the municipality within 30 days of starting the business.

Professional Tax Registration

Specific legislation have been passed by majority state governments to impose a tax on profession, employment of calling of any nature, however, and the fees for it is Rs. 2500 per annum.

Goods and Services Tax (GST)

GST Registration is mandatory for each business engaged in providing services or supply of products, where the turnover exceeds Rs. 20 Lac or does even one transaction in an interstate trade.

Food License / FSSAI Registration

During a business of producing, trading, storing or dealing in any manner of food items, then the state level FSSAI registration or Central License is mandatory based on the turnover.

Drug License

This location-based Drug License is granted by the State Government based on fulfilling certain norms and criteria. No entity can start or continue sale/trade of medicine without drug license.

Private Security Agency License

Private Security Agency may be a lucrative business with immense potential; however, it can be started or continued only after obtaining a license from the competent authority as designated by the state government.

Import Export Code (IEC)

IEC is a ten-digit pan based registration with the DGFT. IEC is a mandatory prerequisite to start a business of Import or Export in India. Only one IEC code can be issued against a pan.

FAQS

No, a One Person Company exempted from holding Annual General Meeting.
No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.
No, a One Person Company does not required to hold Board meeting like Private Limited Company, but it has to hold Board Meeting once in every half year calendar, the gap between two Board Meetings shall not be less than 90 days.
If the member dies, the nominee undertakes the affairs of the company and within 15 days of time, the company has to intimate the Registrar of Companies by filing Form INC-4 with prescribed fee.
A Nominee can be changed with the proper intimation and filing of necessary forms with Registrar of Companies.
One Person company can convert itself to Private Company, when the paid up capital exceeds Rs. 50 lacs or its average turnover exceeds Rs. 2 crores for the relevant period.
A Director is the person who manages and controls the affairs of the company. A Director is the brain of a Company. They occupy a pivotal position in the structure of the company. Directors take the decision regarding the management of a company collectively in their meetings known as Board Meetings.
The minimum capital requirement is Rs. 1,00,000/- but this amount may differ from your investment. Paid up capital can be less than Rs. 100000.
No, you are not allowed to form more than one OPC and nominee in your company cannot be appointed as nominee in any other One Person Company.
Minimum one person is required while starting a One Person Company, but you can have up to 15 Directors for your OPC.
Yes, it can be converted into Private Limited Company, if the One Person Company has exceeded the threshold limit by filing necessary forms.
One Person Company is a new company structure, contains the benefits of sole proprietorship and corporate status. It has only one member, who acts as the Member cum Director and a nominee.
Name reservation: Form INC-1 shall be filed for name availability. Incorporate OPC: After name approval, form INC-2 shall be filed for incorporation of the OPC within 60 days of filing form INC-1. Form DIR-12 shall be filed along with (linked) form INC-2 except when promoter is the sole director of the OPC. The company shall file form INC-22 within 30 days once form INC-2 is registered in case the address of correspondence and registered office address are not same.
A Minor, Foreign citizen, Indian Non-resident, a person incapacitate to contract are restricted from forming a One Person Company.
One Person Company can be registered like Private Limited Company, where all the rules and regulation are laid down by the Ministry of Corporate Affairs.
Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.

List of Documents

  • Address Proof of Promoter and Director (Bank Statement / Electricity, Mobile, Telephone Bill)
  • Scanned Photographs of Director and Promoter
  • PAN Card of Promoter and Director
  • NOC from the owner of the premises of Registered Office
  • Identity Proof Promoter and Director (Voter ID / Driving License/ Passport)
  • Utility Bill as proof must be Latest not later than 2 months

Pricing Plan

BASIC ₹6899
One Time

  • DSC for 2 Directors/Promoter
  • DIN for 2 Directors/Promoter
  • Name approval of the company
  • MOA & AOA for the Company
  • Certificate of Incorporation (COI)
  • PAN & TAN Number for the Company
  • Bank Account Opening Support
  • Filing of INC-20A & GST Registration
Get Plan

SILVER ₹5000
Quarterly

  • INCLUSIVE OF BASIC PACKAGE
  • MSME Registration
  • GST E-way Bill & Accounting Software
  • Annual & Director's Report
  • MCA Annual & Income Tax Return Filing
  • 1 Year Dedicated Compliance Manager Support
  • Financial Statement and Board Resolution Preparation
  • Bookkeeping & Accounting upto 350 entries
Get Plan

GOLD ₹10000
Quarterly

  • INCLUSIVE OF SILVER PACKAGE
  • 12 Months GST Return Filing (GSTR-1 and 3B)
  • TDS Returns
  • Book Keeping & Accounting upto 800 entries
  • -
  • -
  • -
  • -
Get Plan

PLATINUM ₹15000
Quarterly

  • INCLUSIVE OF GOLD PACKAGE
  • Payroll outsourcing upto 50 employees
  • Book keeping and Accounting upto 2000 entries
  • -
  • -
  • -
  • -
  • -
Get Plan

Disclaimer : 1) In case of Rs.10 lakh authorised capital, stamp duty of Rs.5120 (on actuals) will be chargeable extra for the state of Gujarat. Rs.5510 will be the additional stamp duty charges for state of Rajasthan. 2) In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7550 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.15025 will be applicable. In case of Kerala, an additional stamp duty of Rs.3025 will be applicable. 3) Package 4 is applicable upto 2000 entries 4) Class 2 digital signatures with 2 year validity on secure USB token. 5) Upto 3 name options can be given in 1 RUN name approval request. 6) Authorized capital is the amount of shares a company can issue at any time and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2 . 7) Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. Onfiling will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company. 8) Additional authorised capital can be purchased if required at time of incorporation.

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