One Person Company Registration in India
Before the Companies Act of 2013 was enacted, forming a company in India required at least two individuals. However, this changed with the introduction of the Act, which encourages the creation of One Person Companies (OPCs). The Companies Act of 2013 allows for the formation and operation of OPCs, enabling a single person to lead such a company. Unlike traditional private companies, which require at least two directors and two members, an OPC can be established by just one person. The legal framework for OPCs is defined in Section 262 of the Companies Act of 2013. The OPC registration process only requires one director and one member to represent the entire company. OPCs also benefit from a simplified compliance structure, with fewer obligations compared to traditional private companies. This provision provides an easier way for individuals to set up and run a business independently in India.
Minimum Requirement
- Membership standards must be met at both the maximum and minimum levels
- Before incorporation, a nominee should be picked
- Form INC-3 should be used to request the nominee’s approval
- Companies (Incorporation Rules) 2014 require that the OPC name be selected
- Digital Signature Certificate for Potential Director
- Proof of the One Person Company’s registered office
Documents Required
- A scanned copy of a current bank statement
- A phone bill, an electricity or gas bill and a mobile bill.
- Rental agreement in English, digitally transcribed.
- A digital transcription of a landlord’s no-objection certificate.
- A scanned copy of the property or sale deeds in English (if the property is owned).
Procedure for One Person Company Registration
Following is the procedure for One Person Company Registration in India:- 1. Although the day-to-day operations of an OPC are managed by a single individual, it provides the possibility of perpetual succession. In the event of the owner's death, the nominated person can take over and continue managing the business.
- 2. A one-person company (OPC) offers limited liability to its member. As a registered corporation, an OPC is considered a separate legal entity, providing its members with enhanced protection. The member's liability is confined to their shares, meaning they are not personally responsible for the company’s losses. In the case of bankruptcy, creditors can pursue the company itself, not the director, for any outstanding debts.
- 3. In a One Person Company, the sole member acts as the director and is responsible for managing the company’s daily operations. There is no requirement for an additional executive director, as the single member also serves as the shareholder, taking on full responsibility for the company.
- 4. Since the OPC is recognized as a separate legal entity, the individual can hold company assets and property in the company’s name. Others cannot claim ownership of these assets, which may include machinery, factories, residential properties, buildings, and more. The OPC also has the legal right to directly acquire land in its own name.
- 5. The ROC issues a certificate of incorporation with a PAN and TAN.
- 6. Open a bank account and get your business started. The entire OPC registration process can be completed in just 20 days. Simply get in touch with RegisterKaro and we’ll help you finish the process quickly.
