One Person Company (Pvt Ltd)
The Corporate One-Man Army
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Clear Facts on One Person Private Limited Company
As Per Section 2(62) Of The Company’s Act 2013, the concept of One Person Company empowers single entrepreneurs to create a business entity with limited liability protection.
With OPC, you become the sole shareholder, ensuring complete control over your venture. This unique legal structure offers the following features:
Only Indian citizens and Residents of India are eligible for OPC.
One-Person Companies are restricted to doing business in Non-Banking Financial Investment activities, including investment in securities of any other corporate body.
An OPC must write OPC in brackets after the name of the Company.
OPC cannot be incorporated or converted under Section 8 of the Act.
OPC can only be converted to any form of company after the expiration of two years of incorporation.
The annual general meeting is optional in OPC.
The OPC must conduct at least two board meetings in a calendar year and one meeting in each half of a calendar year.
One Person Company (OPC) must nominate a nominee who will become the owner of OPC in case the sole member is disabled.
If your annual turnover crosses ₹2 crores, OPC must convert into a Private Limited Company.
Benefits of OPC
Easy Transferability
The ownership of an OPC can be transferred to any other legal entity or person in India or abroad easily - in part or whole. Directors can also be replaced to ensure business continuity.
Separate Legal Entity
One Person Private Limited Company is recognised as a separate entity legally with perpetual existence. It has PAN numbers, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.
Limited Liability
One Person Private Limited Company provides limited liability protection to its shareholder. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholder.
Perpetual Succession
One Person Private Limited Company, once registered, keeps on existing in the eyes of the law even in the case of any member's death, bankruptcy, or insolvency.
Funding
OPC can raise equity capital from persons or entities interested in becoming shareholders. Entrepreneurs can raise money from angel investors, venture capital, private equity, and hedge funds.
Borrowing Capacity
Due to more debt options, Indian OPCs can borrow more than LLPs. Since debenture issues and convertible debentures are always available, banks help OPCs more than LLPs.
Greater credibility
OPCs must provide the company registrar with a lot of structure, operations, and financial information for the Public domain. Thus, vendors, lenders, and employees can find company information like authorised capital, directors, registered office, etc. Businesses with this information are more credible.
Better governance
OPCs are more organised at creating value because the Companies Act 2013 requires them to follow strict procedures, disclose norms, and comply with legal requirements. To avoid issues, experts should register an OPC.
Key Registration Services: Tailored to Your Needs
MSME Registration
MSME or Udyog Aadhaar registration is to be obtained in the business’s name to establish that the partnership firm is registered with the Ministry of Micro, Small and Medium Enterprises.
Import Export Code
Import Export Code or IE code is obtained from the DGFT in case Pvt Ltd firm business do export /import from India.Import Export Code or IE code is obtained from the DGFT in case Pvt Ltd firm business do export /import from India.
TAN Registration
TAN registration must be obtained for Pvt Ltd firm from the income tax department if the partnership firm is required to deduct any TDS while making any payments as per Income Tax Act 1961.
FSSAI Registration
In case a partnership firm is involved in selling food products or handling food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of Pvt Ltd firm.
GST Registration
GST registration must be obtained if the Pvt Ltd firm sells goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers with annual revenue of more than ₹20 lakhs and traders-annual revenue of more than ₹40 lakhs.
Current Account
A current account can be opened for a partnership firm in any bank in India. We offer exclusive partnerships through which zero-balance current accounts can be opened.
Shop & Establishment License
We will register for Shop & Establishment license if needed as per the criteria.
Applicable Taxes and Annual Compliance
Income Tax Filing
Companies registered in India must file income tax returns each year in Form ITR-6 by 30th September.
DIN KYC
The DIN KYC procedure must be completed each year by the company's directors by 30th April.
Annual Return
Companies registered in India must file MCA annual returns each year in forms AOC-4 and MGT-7 by 31st October.
Statutory Auditor Appointment
Within 30 days of incorporation.
Financial Statement Preparation
Annually Require
GST Filing
GST must be filed if registration taken.
Commencement of Business
The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank, and a commencement certificate must be obtained from MCA within 180 days of Incorporation.
Documents To Be Uploaded
- PAN Card and Address Proof: Submit the PAN card and address proof of all partners involved in the partnership.
- Proof of Principal Place of Business: Provide the necessary documents establishing the principal place of business for your partnership firm.
- Application for Registration of Partnership (Form 1): Complete and submit the application form for partnership registration.
- Certified Original Copy of Partnership Deed: Include the certified original copy of the partnership deed, outlining the terms and conditions agreed upon by the partners.
- Affidavit: Submit a specimen of an affidavit certifying the accuracy of the partnership deed and accompanying documents.
Indian Business Structure Requirments Comparison
| Criteria | Private Limited Company | One Person Company | Sole Proprietorship | Limited Liability Partnership | Partnership Firm |
|---|---|---|---|---|---|
| Ideal for Business | Startup & Growing Companies | Single Promoter | Small Traders & Manufacturers | Professionals Service Firms | Small businesses & Home Businesses |
| Requirements | 2 Directors/Shareholders | 1 Director/Shareholder | 1 Proprietor | 2 Partners | 2 Partners |
| Initial Investment | Not Required | Not Required | Not Required | Not Required | Not Required |
| Tax Advantages | Few benefits | Few benefits | Minimal | Most efficient | Minimal |
| Compliances | High | High | Minimal | Low | Minimal |
| Limited Liability Protection | Yes | Yes | No | Yes | No |
| Investment Options | Very easy to accommodate | Possible but unlikely | Not possible | Possible but unlikely | Not possible |
| Managing Cost | High | High | Very Low | Moderate high | Very Low |
| Paper Work | High | High | Very Less | Moderate high | Less |
| Perpetual Existance | Yes | Yes | No | Yes | No |
| Time Taken | 5-10 days | 5-10 days | 5-7 days | 5-10 days | 5-10 days |
Pay as You Grow
Flexible Payment Options
Choose the package that aligns with your needs and watch your dream take flight:
Note: Fees are subject to change based on turnover and income tax requirements. For accurate and up-to-date information, please contact our experts.
How to Get Started with Sole Proprietorship?