What is One Person Company Incorporation Overview
A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC).
Earlier, In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. This prevented a single person from running a company. But now as per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser as compared to a private company.
Process for One Person Company Incorporation
01
Step 1
Check eligibility and documents
02
Step 2
Apply for DSC &DIN of all the Directors
03
Step 3
File RUN Application for Name Reservation
04
Step 4
File Spice Plus Form for Company Incorporation
05
Step 5
Apply PAN and TAN for Your New Company
06
Step 6
Issuance Of Certificate Of Incorporation By The Authorities
07
Step 7
Open Bank Account and Start Operation
Documents Required For One Person Company Incorporation
- Copy of PAN Card of shareholder
- Passport size photograph of the owner
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Benefits Of One Person Company Incorporation
- Limited Liability Protection to Director’s personal assets
- Better image and credibility in Market
- Easy to raise funds and loans
- Helps for Testing of Business Model and Enables Funding
- Complete Control of the Company with a Single Owner
- Easy to Sell OPC
- Reduce compliance as compared to other corporate forms of operation
Checklist /Minimum requirement for One Person Company Incorporation
- Minimum 1 Shareholder
- Minimum 1 Directors
- Minimum 1 Nominee
- The directors and shareholders can be same person
- Only Indian residents can be Shareholder & Nominee
- Minimum 1 Director must be Indian Resident
- Minimum Authorised Share Capital to be Rs. 1 Lac
- DIN (Director Identification Number) for all Directors
- DSC (Digital Signature Certificate) for 1 Promoters & 1 witness
