Structured Biiz

ONE PERSON COMPANY

Who must go for an One Person Company & Why?

One Person Company (OPC) is a Company with a single Shareholder. A nominee for the Shareholder is compulsory (in case of death of a Shareholder, the nominee becomes the Shareholder of OPC).

Benefits of having an One Person Company is similar to a Private Limited Company. It gives suppliers and customers a sense of confidence in business. Large organizations prefer to deal with private limited companies instead of Proprietorship Firms or Partnership Firms. Private Limited business structure enjoys corporate status, which helps the Entrepreneur to attract quality workforce and helps to retain them by giving them Corporate Designations like Directorship. These designations cannot be used by Proprietorship Firms.

The most significant reason for shareholders to incorporate the ‘single-person company’ is certainly the desire for the limited liability. While doing business as a proprietorship firm, the personal assets of the proprietor can be at risk in the event of failure, but this is not the case for a One Person Private Limited Company, as the shareholder liability is limited to his shareholding. This means any loss or debts which are purely of business nature will not impact personal savings or wealth of an entrepreneur.

No cash flow is required to be maintained, no Annual General Meetings need to be conducted. OPC’s are required to conduct 2 Board Meetings in a year with a minimum gap of 90 days.

OPC can raise funds either through self funding or through Venture Capital or Private Investors by converting it into a Private Limited Company.

Cons

OPC cannot be converted in Section 8 Company (i.e. Not for Profit Company) or a Non-Banking Financial Company

Only a resident (who has stayed in India for 182 days in a year) could be a shareholder of OPC. Non-residents can not form a One Person Company.

Only 1 OPC per individual or 1 Nominee per OPC. Hence, one person can not be a shareholder or nominee in more than 1 OPC.

Not recommended, in case the Entrepreneur is planning to seek investment from an Investor. For bringing investors on board, an OPC needs to convert itself into a Private Limited Company.  

Requirements

  • Minimum 1 Director and Shareholder, being a resident
  • Minimum 1 Nominee
  • Authorised Capital – No minimum Authorised Capital requirement
  • No Minimum Paid Up capital requirement. However, minimum 1 share is required to be subscribed by 1 subscriber (Shareholder)

Compliances

Post Formation Compulsory Compliances

Compliances & Registrations After Formation

  • MCA Filings
  • Accounting & Auditing
  • IT Filing
  • GST Compliances, if registration already obtained
  • MCA Filings that includes filing of forms for:
    Commencement Certificate
    Appointment of Auditors
    DIR-3 KYC of Director
    Preparation of Statutory Register
    Issue of Share Certificates
    Printing & Payment of Stamp Duty on Share Certificates
    Conducting First Board Meeting within 30 days of incorporation Conducting 2 Board Meetings in a year
    Conducting 1 Annual General Meeting
    Annual Disclosures of interest / non-disqualification by Directors
    Filing of Financial Statements & Returns with the Registrar of Companies
  • Trademark Registration to register Brand name and logo of the Company
  • GST Registration & Compliances
  • Professional Tax filing, in case the Company has hired any employees
  • Trade License, in case of requirement
  • Employees Provident Fund Organisation Registration / Compliances will be applicable once the Company crosses the threshold no of employees i.e., 20 employees
  • Employee State Insurance Corporation Registration / Compliances will be applicable once the Company crosses the threshold number of employees i.e., 10 employees in Other states & 20 in Maharashtra
  • & Many More…

OPC Formation Package

Rs. 6,899/-

All inclusive*

  • Company Formation with Rs. 1 Lac Authorised Capital;
  • 1 Class III Digital Signatures for a Director & Subscriber;
  • Director Identification Number for 1 Director;
  • Application for the availability of name of OPC;
  • Drafting of Memorandum & Articles of Association of OPC;
  • Preparation and filing of formation documents of OPC;
  • Payment of registration fees to the Registrar of Companies;
  • Obtaining Certificate of Incorporation from the Registrar of Companies;
  • PAN and TAN of OPC
  • GST Registration (Optional)
  • Employees Provident Fund Organisation Registration (Compliances will be applicable once the Company crosses the threshold no of employee i.e., currently 20 employee)
  • Employee State Insurance Corporation Registration – (Compliances will be applicable once the Company crosses the threshold Limit – 10 employees in other states & 20 in Maharashtra)
  • Shops & Establishment Certificate Registration
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Timeline: 10-20 Days
(*Inclusive of Govt. Fees on Form filing. Govt Fees is as applicable in Maharashtra. Govt Fees will vary as per the State and any amount over and above the Govt. Fee mentioned herein above shall be payable by the Client.

Request you to provide 2 Unique Names of the Company. In case the name approval is not granted in the first instance, Govt Fee of Rs. 1,000/- and Our Fee of Rs. 999 shall be charged separately for re-application of name.

Post Formation Compliance Package

Rs. 9,999/-*

inclusive of GST

  • Preparation of documents for opening a Current Account;
  • Filing of Certificate of Commencement of Business;
  • Appointment of First Auditor & filing of document in regard to the same;
  • Obtaining Statutory Declaration from a Director;
  • Filing of DIR-KYC of a Director;
  • Preparation of Statutory Registers;
  • Preparation of First Minutes of the Board Meeting;
  • Issue of Share Certificates;
  • Post Formation Compliance Guidance!!
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(* Excluding Govt. fee and reimbursements, if any.
and any penalty levied due to delay from the Client's end.)