The Companies Act of 2013 created a new type of company registration known as a one-person company. Standard legal compliance, optimum tax compliance, only one director required for incorporation, director liabilities are limited, boost brand image, and is advised for solitary business promoters are the major benefits of a one-person company.
What is a One-Person Company?
One Person Company is a new concept in India, introduced with the Company Act 2013. In India, a one-person company is formed by a single person. Prior to the implementation of the Companies Act 2013, a single person did not form a company. An OPC combines the characteristics of a corporation with the advantages of a sole proprietorship. Previously, if a person needed to start a business, he or she could only do so as a sole proprietorship.
A company can be formed with just one director and one member, according to Section 2 (62) of the Company's Act 2013. In India, a One Person Company registration is a type of entity with fewer compliance requirements than a Private Limited Company.
Under the Companies Act 2013, a One Person Company Registration in India can be obtained with only one member and one director. The Director and a member may be the same person. An individual, whether a resident or non-resident Indian, can register an OPC in India here.
Requirements for Company Registration:
- One Nominee and One Director
- Copy of proposed Director's PAN card (Attested by Bank Manager or Gazetted Officer)
- ID proof (Passport/License/Voters Driver's ID) of proposed Director [Obtain Attestation from Bank Manager or Gazetted Officer]
- All directors must provide proof of current residence (bank statement/electricity bill/mobile bill) (Self-attested)
- Proof of the proposed Registered Office's address (electricity bill/property tax receipt, if it is a residential property)
- NOC from the owner of the above-mentioned property.
- 4 passport-sized photographs of the proposed Directors
Process of Creating a Company:
- Registration of Digital Signatures
- Obtaining a Director Identification Number (DIN)
- Obtaining a Name from the Registrar of Companies
- Drafting of the Memorandum (MOA) and Articles of Association (AOA).
- Filing of MOA and AOA
- Obtaining an Incorporation Certificate
Why register a One Person Company?
- It is an improved version of a sole proprietorship.
- Best way to build an expandable business.
- It improves brand recognition for solo promoters.
- Because liabilities are limited, it can protect your personal assets.
- Recommend for solo promoters.