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ONE PERSON COMPANY (OPC)

The concept of One Person Company (OPC) is an advance form of business organisation over proprietorship business, introduced by the Companies Act,2013, thereby enabling entrepreneur(s) carrying on the business in the Sole Proprietor form of business to enter into a corporate framework.

One Person Company (OPC) comprises with concessional/relaxed requirements under the Act., provides entrepreneur control over the company while limiting his/her liability, who could be the director of Such One Person Company and may also appoint any other person as a director, and limit of maximum number of directors is fifteen.

One Person Company (OPC) cannot raise equity shares and offer employees stock options to its employees. However, in case of exceeding its annual turnover above Rs. Two crore and Paid up share capital above Rs. Fifty lakhs, it is mandatory required to convert into private or public limited company within 6 months.

This concept is very popular in abroad, including in Singapore, USA and European countries, Currently it is new in India and only time will assess how well it works in India.

STANDARD REGISTRATION INCLUSIONS

*Incorporation in 3 working days

  • DSC for director
  • DIN for director
  • Name Reservatione
  • Drafting of Memorandum & Articles of Association
  • Filing of Form with ROC
  • Company PAN & TAN
 

* Prices are higher for registrations in Kerala, Madhya Pradesh and Punjab on account of higher stamp duty.

DOCUMENTS REQUIRED FOR INCORPORATION OF COMPANY:

  • Registered office address proof (rent agreement along with latest rent receipt and no objection certificate(NOC) from the landlord, where premises are rented);
  • In case the premises are owned by a Director and Promoters, any documents establishing the ownership such as sale deed/house tax receipt etc along with the no objection certificate
  • Copy of latest utility bill;
  • Scan copy of PAN and any one of the Identity Proof (Voter ID/Aadhar Card/Driving License/Passport);
  • Scan copy of passport is mandatory requirement for proof of identity in case of foreign nationals;and
  • Two passport size photo (can be send via whatsapp or mail).

COMPARISION WITH OTHER BUSINESS SET UP OPTION

Private Limited Company
Rate- 30% Surcharge- 7% / 12%* *(If income exceeds 1 cr- 7% If exceeds 10 cr- 12%) Cess- 3% of tax & surcharge AMT. Note- Above rate apply after allowing remuneration to director.
Limited Liability
Min no. of person required is 2
Max no. of person allowed is 200
Body corporate can be a member
Moderate Statutory Compliance
Perpetual Existence
LIMITED LIABILITY PARTNERSHIP
Rate- 30% Surcharge- 12% (If income exceeds 1 cr) Cess- 3% of tax & surcharge AMT Note- Above rate shall apply after allowing remuneration to partner.
Limited Liability
Min no. of person required is 2
No Limit
Body corporate can be a member
Less compliance in comparison to OPC and Private Limited Company
Perpetual Existence
ONE PERSON COMPANY (OPC)
Rate- 30% Surcharge- 7% / 12%* *(If income exceeds 1 cr- 7% If exceeds 10 cr- 12%) Cess- 3% of tax & surcharge AMT. Note- Above rate apply after allowing remuneration to director.
Limited Liability
Min no. of person required is 1
Max no. of person allowed is 1
Body corporate cannot be a member
Less compliance in comparison to Private Limited Company
Perpetual Existence
PARTNERSHIP FIRM
Rate- 30% Surcharge- 12% (If income exceeds 1 cr) Cess- 3% of tax & surcharge AMT Note- Above rate shall apply after allowing remuneration to partner.
Unlimited Liability
Min no. of person required is 2
Max no. of person allowed is 20
Body corporate cannot be a member
Very less Statutory Compliance
There's No Perpetual Existence

ADVANTAGES OF OPC REGISTRATION

Limits Director's Liability

Businesses often need to borrow money. In Sole Proprietorship structure, proprietors are personally liable towards business.Therefore, where he is unable to repay any debt from business returns, the proprietor would be personally liable and he might require to sell his/her personal property. Under OPC concept, liability would be limited only to the amount of investment made while starting the business, and there would be no personal liability.

Perpetual Existence

Under Sole Proprietorship there is lack of perpetual succession of business entity, there may be business would comes to an end on his/her death, whereas under OPC form of business organisation, entity enjoys perpetual existence as there is separate legal entity.

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