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One Person Company registration is essentially a one-man show. In accordance with the Companies Act, 2013, a company can be incorporated and run by a single person. An OPC has features of a company with the advantages of a sole proprietorship. OPC registration is easier than that of a private company and comprises lesser compliances. As per Section 2 (62) of the Companies Act, a one person company registration can be done with only one director and one member. Please note that the director and the member can essentially be the same individual.
One Person Company registration is a company run by a single person wherein he/she may or may not be the director and the member. An OPC registration was formed as a refinement of the structure of a sole proprietorship firm. The director in an OPC has liability limited to his/her extent of investment in the firm whereas he/she is the sole shareholder.
If a One Person Company has an annual turnover of Rs 20 crores (w.e.f. 2021-22 passed in the Union Budget, 2021). three times in a row or it acquires a paid-up fund of Rs two crores and above, it has to be converted into a private or a public limited company within a period of six months.
Given below are a few advantages of one person company registration:
Let us see how to register one person company:
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The basic mandatory compliance for one person company registration comprises the following:
A one person company registration must include one person as ‘Nominee’ in the event of death, incapacity, etc. who will do the following-
(a) become a member and Director of OPC;
(b) be entitled to all shares of the OPC, and
(c) bear all liabilities of OPC.
However, written consent of the individual to act as the nominee must be obtained and filed with the Registrar of Companies at the time of incorporation along with MoA and AoA to commence the business effectively.
Please note that a nominee may withdraw his/her consent by giving a notice in writing to the member of the OPC. The member then nominates another person within 15 days of the receipt of the notice of withdrawal.
In case of an individual, being a member in One Person Company becomes a member in another OPC registration by virtue of his/her being a nominee in that OPC, he/she shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days as prescribed in the Companies Act.
If an OPC infringes the provisions of Companies Rules, 2014, such contravening party will be liable to pay a fine up to Rs. 10,000. This may further extend by Rs. 1000 every day during which such contravention continues.
All OPC registration needs to do Annual Compliance every year
The Due Date for filling of Annual Return one person company registration is within 180 days from the end of the FY.
There are multiple Forms required to be filled. For more details contact us.
Statutory Audit under Companies Act 2013 is mandatory for OPC Annual Compliance.
Every OPC is required to do Statutory Audit irrespective of Turnover, Share Capital, etc.
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