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Incorporation of One Person Company

7450* Basic Package

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Overview

What is a One Person Company?

One Person Company is a company that is established with only one member unlike, the traditional manner of having two people.The concept of One Person Company was introduced in India through the Companies Act 2013 with a vision of escalation of entrepreneurs in the market place and making their contribution to the economy widely effective.

Nominee in a One Person Company :-

While incorporating a One Person Company, the sole member of the company has to provide a name to be the nominee of the company in the Companies MOA, who can undertake the working of the company, in case of death or incapacitation of the former. Also there should be written consent of the nominee filed along with the MOA and AOA of the company.

Consensual withdrawal :-

In any given point of time, a nominee can withdraw his/her consent, in this case the sole member is required to submit the notice of withdrawal of consent in form INC-3 and along with that the sole member has nominate a new nominee within 15 days and has to submit a notice in form INC-4.

Replacement of Nominee :-

The sole member of One Person Company has the rights to change the nominee of the company for whatsoever reason. In order to change the nominee the company has to file a written application in form INC-3 and company should file the notice of change with the consent of the nominee and the applicable fees within 30 days of receiving the intimation of change.

Appointing the Nominee :-

If there is incapacitation and death of the sole member then, the nominee of the OPC will take over the workings and he/she should appoint a new nominee within 15 days as a replacement.

Penalty :-

In case if the sole member doesn't compliant with specific regulations, then there would be a penalty of 10,000/- that needs to be incurred by the sole member, further with every default, the penalty will increase by a fine of 1,000/-

Advantages

1. Succession :-

The Companies Act also provides for a person, nominated by the stakeholder, to take over the reins of the company in the event of the death or inability of the said stakeholder.Hence, the OPC have a continuous life, beyond that of the founding director.

2. Easy Credit Facility :-

The easy credit facility provided to this type of business and also the perpetual succession clause only makes it popular among the entrepreneurs.

3. Easier return Filing :-

While it is mandatory for an OPC to get its accounts audited and filing annual returns, the same can be easily done with the signature of the Director and there is no requirement for company secretary’s signature.

Disadvantages

1. Tax rate :-

The One Person Company is treated in the same way as a private company, Hence there are no exemptions, the tax slab applicable is the same. That would mean an OPC would have to pay 30% tax on all profits.

2. Need for compulsory conversion to Private Limited Company :-

An OPC will only support small businesses. If turnover crosses Rs. 2 crore in the previous year, the OPC must be converted to a private limited company, public limited company or LLP.

If paid up capital crosses Rs. 50 lacs, the OPC must be converted to a private limited company, public limited company or LLP.

Document Required

1. Documents from Director / Shareholder /Nominee:-

  • A) IDENTITY PROOF:-
    • Permanent Account Number (PAN) Card
    • Aadhaar Card / Passport / Driving License / Voter Identity Card
  • B) ADDRESS PROOF:-
    • Telephone Bill / Mobile Bill
    • Electricity Bill / Water Bill
    • Bank Statement /Bank Passbook with latest transactions (Any one of the Document not older than 2 months)
  • C) Passport size Photographs – 3 each

2. Documents to be Signed by all DIRECTOR(S):- 

  • A) Consent to Act as Director: Form DIR-2
  • B) Details for DIN
  • C) Declaration of DIN (If DIN is not available)

3. Documents to be Signed by Shareholder:-

  • A) Application for Digital Signature Certificate (DSC)
  • B) Affidavit by Subscribers & Director: INC-9

4. Documents to be Signed by Nominee Shareholder:-

  • A) Details of Nominee Shareholder
  • B) Consent by the Nomination of Shareholder – Form INC-3

5. Documents from Company / LLP / Trademark Owner, if any:-

  • A) Board Resolution / Formal authorization for use of Name / Trademark
  • B) Authorization for execution Documents from Company / LLP

6. Registered Office – Address:-

  • No-Objection letter from the Owner of Address to use the address as the Registered Office of the Company.
  • Address Proof - In the name of the Owner of Addres:-
    • A) Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months) Or
    • B) Tax Paid Receipt or Copy of Registered Sale Deed

Time Lines

  • (20 to 30 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • DSC Application
  • Reservation of Company Name
  • Filing of application with registrar authorities
  • Receipt of Registration Certificate
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

7450*
  • Expert Consultation
  • 1 DIN Application (if DIN of director is not available)
  • 1 DSC token
  • Authorised Capital Rs. 1 Lakh 1
  • Incorporation Fee and Stamp Duty Fee 2
  • Open a Current Account 3
  • PAN and TAN
  • Registration with GST

Business

9900*
  • Expert Consultation
  • 1 DIN Application (if DIN of director is not available)
  • 1 DSC token
  • Authorised Capital Rs. 1 Lakh 1
  • Incorporation Fee and Stamp Duty Fee 2
  • Open a Current Account 3
  • PAN and TAN
  • Registration with GST
  • Registration with MSME
  • Share Certificate

Enterprise

13450*
  • Expert Consultation
  • 1 DIN Application (if DIN of director is not available)
  • 1 DSC token
  • Authorised Capital Rs. 1 Lakh 1
  • Incorporation Fee and Stamp Duty Fee 2
  • Open a Current Account 3
  • PAN and TAN
  • Registration with GST
  • Registration with MSME
  • ESI and PF Registration
  • Share Certificate Hard Copy
  • 3 months GST return filing upto 50 invoice per month
  • 3 months account upto 75 entries per month
  • 10 MOA / AOA
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.
  • 1. Additional authorised capital can be increased any time after paying additional stamp duty and other charges.
  • 2. Stamp duty additional required Rs. 7,500 in case of Madhya Pradesh, Rs. 3,000 in case of Kerala and Rs. 10,000 in case of Punjab state incorporation.
  • 3. Current Account will be choosen as per your preference.

FAQ's

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