One person company is a single person company, which is owned by a single person only, the company cannot share its ownership with any other person during its life. The company is registered with MCA through the registrar of companies, to promote the sole proprietor company. The government introduced the concept of OPC company under the companies act, 2013, so that a single person can also register his private limited company. There can be 15 directors in the company but the limit of the shareholder is restricted to one person. After the registration of one person company, it has to do the annual compliances every year like any other company has to do; compliances are ITR filing, KYC of director, preparation of balance sheet, profit & loss a/c, ROC filing etc. the company also has to pay 25% tax on the profit of the company.
Features Of One Person Company
- There is no minimum capital requirement to start the OPC company
- A single person is required as a director or member (both can be the same as well as a different person) to start the company registration process
- The company has a separate legal entity which makes it different from its director and member. The company can buy, sell any property by its name and the property includes, any land, machine, trademark, copyright, etc.
- Due to single ownership, the profit is earned by the single person only
- Less chance of management dispute, if there is one director in the company
- Enjoy better status in comparison to the sole proprietorship.
- The death of the director and the member doesn’t affect the life of the company
- The company operate any business activity except banking, insurance, NBFCs, or other finance related activity.
Eligibility For One Person Company
- Only a natural person who is an Indian Resident can be a member of the company
- At least one director should be an Indian resident if there is more than one director in the company
- One person shall be appointed as a nominee of the company and that person should be a natural person and Indian citizen and Indian resident
- The registered office of the company must be located in India only.
- The OPC can register for any purpose except for finance and insurance business.
- The director and member must have a digital signature before starting the company registration process.
Documents Required For One Person Company
Documents Required For Director/ Member
- PAN card
- Aadhar card
- Id proof (voter id/ passport/ driving license); anyone
- Address proof (electricity bill/ bank statement/ telephone bill/ mobile bill); anyone but should not be older than 2 months
Documents Required For Office Address Proof
- Sale deed or tax receipt if the property is owned, or
- Rent agreement or lease deed if rented
- Utility bill (electricity bill/ mobile bill/ gas bill/ telephone bill); anyone but should not be older than 2 months
- NOC from the owner of the property
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