Registration of One Person Company

What is a One Person Company?

One Person Company is a new form of business entity. A private limited company requires minimum of two directors and two shareholders. The directors and the shareholders can be same individuals. One Person Company does not require two persons as director. It allows a single entrepreneur to get his business registered as a company and enjoy limited liability protection.

What is the Capital required to start an OPC?

One Person Company can be started with a minimum authorised capital of Rs. 1 lakh. There is no mandatory requirement for minimum capital with which an OPC should be started. Hence, you can start as an OPC with a capital contribution as low as Rs.10.

Why should I form an OPC?

OPC is a Private Limited Company for all the legal purposes with only one member.

Is there any threshold limits for an OPC to mandatorily get converted into either private or public company?

In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.

What is the eligibility criteria to form an OPC?

A person who is a resident in India and is also an Indian Citizen, is living in India for a period of 182 days is eligible to become a member and nominee of an OPC. A person can be a member of only one OPC. If you are the member of more than one OPC, then you will have to withdraw the membership from one of the OPCs and carry on with only one.

Is there any tax advantage on forming an OPC?

There is no specific tax advantage to an OPC over any other form. The tax rate is flat 30%, other tax provisions like MAT & Dividend Distribution Tax applies as they apply to any other form of company.

What are the mandatory compliance that an OPC needs to observe?

The basic mandatory compliance are:

• Maintenance of proper books of accounts
• Statutory audit of Financial Statements
• Filing of business Income tax return every year before 30th Sep
• Filing Annual ROC return which includes form MGT-7 - Statement of Disclosure of ShareHolders and Directors.

Do I need to be physically present during this process?

The Ministry of Corporate Affairs (MCA) has made the new OPC registration a completely online process. All the document flow happens in electronic form and there is no need of any physical presence.

Is stamp duty payable during incorporation process?

Yes, Stamp duty charges are imposed by the state in which the registered office is proposed to be located. The charges are on MOA, AOA & form INC 32. These charges are covered under the plan for all the states except Punjab , Kerala & Madhya Pradesh. Our experts will guide you on additional charges if any for Punjab , Kerala & Madhya Pradesh.

Our company would like to bring a non-resident Indian as a director in the company. Is this included in the package?

To bring in additional director, you need to secure DIN & digital signatures (DSC). Filing of form with ROC is also a requirement for appointment of director.

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If the individual is residing outside India at the time of the application, then he or she needs to get the PAN, Aadhaar, current address (in the country of residence), permanent address attested by Indian embassy in that country. Any incidental charges here is not covered in the package.