This can be termed as an amendment to the sole proprietorship registration. In this setup, an individual promoter gets complete control over the company and its operations while the liability is limited to the contributions to the business. The individual acts as the only director and shareholder of the company. There is a provision to nominate a nominee director but he has no power until and unless the director fails to perform his duties. This limits the ability of the OPC to raise funding through equity or offering employee stock options.
It enjoys continuous existence:In case of sole proprietorship, the death of the proprietor is the end of its existence. However, being a legal entity, OPC is transferred to the nominee director.
It offers limited liability:The director does not have to bear the business debts as a personal liability. His liability is limited to the investment of the company which is not available in sole proprietorship company.
It is more credibleAn OPC is more credible, it has to get its books audited annually by a registered auditor and lenders easily trusts books of LLP.
Conversion & Taxation:OPC can be converted to Private limited Company with certain terms & conditions. Registration under OPC is considered as Private limited registration. Hence, taxes are applicable in a similar way as applicability on Private limited company.
- OPC registration is easy and all registration formats will work under e-filing options. Hence, it’s the most transparent registration option.
- Partners personal assets are totally protected in this model, if in any case business becomes bankrupt personal assets of directors are not charged.
- Proper Digital Signatures & DIN are created in OPC, without digital signatures nothing will start.
- You can start your OPC company by your home address too; there is no need to have commercial space for registration in OPC format.
- OPC registration compliance and procedures are simple and the entire process can be completed in 7-15 days.
1. Obtain Digital Signatures
2. Reserve your Company Brand Name
3. Submission of MOA & AOA of Company
4. Get your Business Incorporation Certificate
5. Get Company’s PAN & TAN
- You have to apply with unique name of LLP, previously registered brand names would not allow you to take even resembling words. It should be non-offensive or not related to any business name. We will help you by taking up your name of the company.
- Its creation & maintenance cost is slightly higher than creation of sole proprietorship firm. Ministry of Corporate affairs is the authority of handling OPC Matters.
- There is no specific capital requirement to register your One Person Company in India. You can start it with just Rs. 10,000. Though you have to take authorized capital of Rs. 1,00,000.
- You have to fulfil all compliance of MCA, Income Tax & GST Authorities if applicable.
- As per the MCA guidelines, OPC should mandatorily converted into private limited if it crosses 2 crore turnover for 3 consecutive years or paid-up capital of more than 50 lakhs.
- There is flat rate of 30% of income tax in OPC companies, rather than 25 % in Private Limited company.
- One can create one OPC at a time in India; there is no permission to pen multiple OPC’s with the same pan card.
Documents depend on whether the business is on lease or owned, and if there is any necessity of license or registration in your business model. Though some basic documents are always required for registering a One Person Company in India.
Passport Size Photograph of all Directors & Shareholders
PAN Card of all Directors & Shareholders
Self-Attested ID Proof of all the Directors
(Driving License/Passport/Voter ID)
Passport Copy of Directors & Shareholders (If they have)
Residence Proof of Shareholders
Electricity Bill or Other Utility Bill for Address Proof
Rental Agreement or Sale Deed of Business Place
- We deliver end to end consultation before you accept this model of creation for your start up. How taxes impact you, etc. We will absolutely guide you on registration & licenses which are required with this option, for example, MSME & Trademark prominence in registering an OPC company in India.
- We are specialised in MCA Matters and we will draft the matters & terms in most legal form. FDI & Foreign partner investment are the difficult approval procedures in LLP, we will consult you on every step of it.
- Also, we handle all the compliance work beginning from managing accounting work, GST return filings, income tax matters and annual audits if applicable.
- We will constantly support you on all monetary needs of the organisation and assist you according to the requirement.
- Generally, it takes 10 to 15 days procedure for registering this kind of business model & further it depends all on the Authorities & requirements of client.