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One Person Company

The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

One Person Companies are helping tremendously in increasing the overall economy of India. More and more Entrepreneurs are coming up and setting up their business. Since, no intervention from any third party is seen, it makes it more beneficial.

The One Person Company (OPC) was introduced as a strong improvement over the sole proprietorship. It gives a single promoter full control over the company while limiting his/her liability to contributions to the business. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). So there’s no chance of raising equity funding or offering employee stock options. Furthermore, if an OPC hits an average three-year turnover of over Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it must be turned into a private limited company or public limited company within six months.

One Person Company Registration Process

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COLLECT INFORMATION

You are required to give some information for Company Registration and email documents.


ONLINE PAYMENT

We draft your application for Name of One Person Company and file it with the MCA office on your behalf.

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APPLICATION SUBMIT

We will create all the required documents and file them with ROC on your behalf.


COI & DSC SENT BY COURIER

Once your Company registration is completed we will send DSC and other relevant documents by courier.

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Required Documents for One Person Company

What You Need To Know

SEPARATE LEGAL ENTITY

Private Limited Company is a legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. The members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company’s debts.

BORROWING CAPACITY

Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.

LIMITED LIABILITY

Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors’ personal property would be safe.

PERPETUAL SUCCESSION

Private Limited Company has ‘perpetual succession’, meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.

OWNING PROPERTY

Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company – as long as the company is a going concern.

FAQs on Solo Proprietorship Registration

Who can be a director in a company?
Any person over the age of 18 years can become a director in a company. Also, there are no conditions on residency or citizenship hence, NRIs and Foreign Nationals can easily start and manage a private limited company in India.
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
Limited liability is the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorship’s and partnerships, in a private limited company the liability of the shareholders in respect of the company’s liabilities is limited. In other words, the liability of the shareholders of a company is limited only to the value of shares taken up by them.
Minimum of two people are required to act as directors and shareholders for registration of private limited company. The directors must be natural persons, while the shareholders can be natural persons or corporate entities. In addition, a registered office address in India is also required for company registration.
On average, private limited companies are registered by HerambIndia in 10 to 15 days. The processing time would vary on a case to case basis based on the time taken by our clients to submit the necessary documents and government processing time.
Company incorporation certificate is provided as a pdf document by the Ministry of Corporate Affairs (MCA). MCA does not provide hard or printed copy of incorporation certificate.
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