Company Registration Made Easy
Start your business journey with our streamlined company registration process. We offer comprehensive packages to suit your needs and budget.
Our expert team ensures a smooth and hassle-free registration experience.
Start your business journey with our streamlined company registration process. We offer comprehensive packages to suit your needs and budget.
Our expert team ensures a smooth and hassle-free registration experience.
The enactment of the Companies Act, 2013 brought some very good and revolutionary changes in the system. It laid down the very necessary rules and regulations for the merging companies and gave them the power and the freedom to do their businesses in a suitable manner.
Among the various reforms of the company act, 2013, one very important was the incorporation of One Person Companies. Before the enactment of this act, if an entrepreneur wished to start a business solely in his name, it was not possible. He or she had to go for a sole proprietorship form of company. This act laid the foundation of single-owner companies where only an owner and a director were required to run the business.
One-person companies are blissful for people who wish to start their business with only one person and don't want many people to get involved. This freedom has given rise to many budding entrepreneurs and has given them the courage to stand up for themselves.
One-person companies have a separate identity and thus provide safety to the shareholder or the founder. The founder is only liable for up to their contribution in the shares of the company and is not bound to pay for any losses.
One-person companies are attractive investment opportunities for angel investors, financial institutions, and banks. These companies can raise funds through venture capital by allotting shares, making them appealing compared to bigger companies or proprietorship firms.
One-person companies require only one member (who can also be the director) and one nominee. With a minimum capital investment requirement of Rs 1 lakh, they are simpler to establish.
One-person companies, being single-member firms, are exempt from generating cash flow statements or requiring a company secretary for account approvals. The director can manage accounts independently without the need for annual general meetings.
One-person companies benefit from quick, effective decision-making, as there is no hierarchy of professionals. The director’s role is central, allowing prompt resolution of conflicts and issues.
One-person companies adhere to the policy of perpetual succession, ensuring continuity even in cases of bankruptcy or the owner's death. In such events, the nominee takes over the director’s responsibilities and runs the business.
Limited Liability companies provide more protection to the partners and there is no liability on them. These firms make the partners immune from facing any personal liability in cases of debts, misconduct, or any wrongful acts, and the owners are held liable only up to their investments.
There are two ways in which an OPC can be registered-
The procedure of registration on the government portal can be quite lengthy and cumbersome. Filing Lounge has a distinctive section for different types of registration. Hence, You can opt for Registration of One Person Company with us. Here are the steps to be followed:-
Apply for One Person Company Registration
If the paid-up capital exceeds Rs. 50 lakhs and the annual turnover of a One Person Company exceeds Rs. 2 crores, it must be converted into a Private Limited Company. Therefore, an OPC is not suitable for large-scale businesses.
One Person Companies are subject to a 30% income tax rate and do not benefit from the tax slab advantages available to other types of firms, making them potentially less profitable.
Compared to partnership firms or similar structures, One Person Companies face higher compliance costs.
OPCs must include "One Person Company" in their name, which can suggest that the company is solely managed by one person, potentially creating a perception of limited credibility.
The owner of an OPC cannot own another OPC simultaneously, restricting them to one such company at a time.
In an OPC, all decisions rely solely on the owner. If the owner lacks decision-making skills, the company may face significant challenges.
If an OPC anticipates high turnovers, it’s advisable to convert to a Private Limited Company. However, under the Companies Act, 2013, an OPC cannot convert to a Private Limited Company within the first two years of incorporation.
Only an Indian citizen who is a resident (has stayed in India for a period of 182 days) of India can become a member as well as the nominee of an OPC.
Yes, the nominee’s consent form can be withdrawn or his or her name can be changed by filing the form INC-4.
If the annual paid-up capital of the company exceeds Rs. 50 lakhs and if the annual turnover exceeds Rs. 2 crores, the OPC should be converted into a private or public limited company by filling up Form INC-6.
No, as per the company act, 2013, a foreign national cannot set up an OPC in India.
No, a nominee only needs to have a PAN card in his or her name.
In cases of change of membership due to the sudden demise of the owner or incapacity to manage, Form INC-4 needs to be filed with the details of the new member.
The time limit for filing the form is within 30 days in case of voluntary conversion and within six months of mandatory conversion.