One Person Company
The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a OPC is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.We at Tax Freedom assit our clients to create a company at ease.
Who can be eleigible for forming a OPC?
OPC: A natural person who is an Indian citizen and resident in India: â€“
(a) Shall be eligible to incorporate a One Person Company;
(b) Shall be a nominee for the sole member of a One Person Company.
How much time does it take to form an OPC?
With old route it takes around 12 to 16 days but With New form INC 29 the total time to register a One Person Companyis 8-10 working days. The documents requirements are as follows:
What are the documets required for forming an OPC?
For Directors and Nominee:
Â·Â Â Â Â Â Â Â Â Pan Card.
Â·Â Â Â Â Â Â Â Â ID proof- Any one (Voter ID/Aadhar Card/Driving License/Passport).
Â·Â Â Â Â Â Â Â Â Address Proof- Any one(Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement).
How many persons are required to form an OPC?
A minimum of one is required while starting a One Person Company, but you can have up to 15 Directors for your OPC
Who is nominee in case of OPC?Whether Nominee should be an Indian Rsident?
A nominee is a next of kin for an OPC. A nominee becomes the shareholder in case of death / incapacity for the original shareholder. A nominee has to be a resident Indian citizen.
Can an OPC be converted in a Private Limited Compant?And what are the ways for such a conversion?
Yes, One Person Company converts itself into a Private Limited Company as following:
When a One Person Company gets incorporated, it cannot convert itself to Private or Public company for a period of not less than two years from the date of incorporation. Means if you want to get converted voluntarily you have to wait for two years to over
When a One Person Company has a paid-up capital more or equal to Rs. 50 lakhs or, the Annual turnover for the relevant financial year exceeds Rs. 2 Crore, then in such conditions, the company has to compulsorily convert itself into Private Limited Company or Public Limited Company.
Can a person b rdirector in more than one OPC?
Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person 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 shall withdraw his membership from either of the OPCs within one hundred and eighty days.
What is minimum capital requirement for OPC?
One Person Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the OPC. There is no requirement to show proof of capital invested during the incorporation process.
Is a commercial space required to open an OPC?
You can open a company on your residential address there is no requirement to have a commercial place to open up a company.
What are the douments reuired for Registered Office Address?
For Registered Office Address
Â·Â Â Â Â Â Â Â Â Rent agreementalong with latest rent receipt (in case the premises are rented)
Â·Â Â Â Â Â Â Â Â House tax receipts (in case premises are owned)
Â·Â Â Â Â Â Â Â Â Electricity bill
Â·Â Â Â Â Â Â Â Â NOC from the Owner (Format will be shared once your company name approved)