1999 Rs.
One Person Company (OPC) is a unique form of business entity introduced in India to enable entrepreneurs to establish and operate a company with only one person as its shareholder and director. OPC provides the benefits of limited liability while allowing sole proprietors to enjoy the advantages of a corporate structure.
Limited Liability: The liability of the owner is limited to the extent of their investment in the company, protecting personal assets from business liabilities.
Corporate Structure: OPC provides a separate legal identity, distinct from its owner, which enhances credibility and facilitates business transactions.
Sole Ownership: OPC allows sole proprietors to manage and control their business operations independently, without the need for external partners.
Easy Compliance: OPCs have simpler compliance requirements compared to other forms of companies, making it easier for entrepreneurs to manage regulatory obligations.
Continuity of Existence: OPCs have perpetual succession, ensuring continuity of business operations even in the event of the owner's demise or incapacitation.
Obtain Digital Signature Certificate (DSC): The first step is to obtain DSC for the proposed director and subscriber of the OPC.
Obtain Director Identification Number (DIN): Next, the proposed director needs to obtain DIN from the Ministry of Corporate Affairs (MCA).
Name Reservation: Apply for the reservation of the proposed company name with the Registrar of Companies (ROC). The name should comply with the Companies Act, 2013 guidelines.
Memorandum of Association (MOA) and Articles of Association (AOA): Draft the MOA and AOA outlining the objectives, rules, and regulations of the company.
Prepare Incorporation Documents: Prepare the necessary incorporation documents, including Form SPICe (Simplified Proforma for Incorporating Company electronically) along with MOA and AOA.
File Application: File the incorporation documents electronically with the ROC along with the requisite fees and stamp duty.
ROC Approval: Await approval from the ROC, which typically takes 7-14 days from the date of filing.
Certificate of Incorporation: Upon approval, receive the Certificate of Incorporation, officially establishing the OPC.
PAN and TAN Application: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with the Income Tax Department.
Bank Account Opening: Open a bank account in the name of the OPC and deposit the initial capital.
Compliance Requirements: Comply with ongoing regulatory requirements, including holding annual general meetings, filing annual financial statements and reports, and maintaining statutory registers.
OPCs can convert into Private Limited Companies once they exceed the prescribed thresholds for turnover or paid-up capital.
Follow the prescribed procedure for conversion as per the Companies Act, 2013 and seek approval from the ROC.