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

Compliances

Post Formation Compulsory Compliances

Compliances & Registrations After Formation

OPC Formation Package

Rs. 6,899/-

All inclusive*

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

(* Excluding Govt. fee and reimbursements, if any.
and any penalty levied due to delay from the Client's end.)