One of the earliest and simplest business structures to establish in India is the sole proprietorship. A proprietorship is a form of business where the owner owns, runs, and controls the whole enterprise. There are extremely few compliance requirements because the proprietorship and proprietor are same, making it simple to start.

A proprietorship cannot have additional partners or shareholders since the proprietor and the business are one and the same. Furthermore, the proprietor's minimal responsibility from the business operations carried out under the sole proprietorship is unprotected. Therefore, small firms with no more than 5 workers are best served by this form of corporate structure.

We are able to help with OPC registration in Bangalore, India. If you want our assistance in Bangalore to launch a business, please email ca.malluby@gmail.com or call us @ +91 9916495890

Salient Features of OPC (One Person Company)

• Only One Shareholder: To incorporate an OPC, it is important that the person registering the company is an Indian citizen and a resident in India. Being a resident in India here means that the person registering the company must have stayed in India for at least 182 days (counting from the immediate calendar), or must have stayed for 60 days or more during that particular financial year and has lived in India for 365 days or more during 4 preceding years (counting from the relevant financial year).
• Shareholder’s Nominee: It is important for the shareholder to nominate another person who shall in case of initial shareholder’s death or insufficiency to handle the business, take charge of the business and become the shareholder. Also, the initial shareholder must keep in mind that the nominee too must be a citizen and resident of India.
• Director: The company must comprise of at least one Director. The shareholder can also become the sole Director. The maximum number of Directors a company can have is 15.

Procedure to Register a One Person Company

• Obtaining DSC - DSC application need to be filed along with ID and address proof duly attested by bank manager, gazetteer officer or post master.
• Obtaining DIN – It’s a unique number which is allotted to the Director of a company by the Ministry of Corporate Affairs (MCA).
• Name Approval – A minimum of one and maximum of six proposed name can be submitted to the MCA for name approval.
• MOA & AOA – MOA is a legal documentation which defines activity of the company. AOA is the rule book of company operations.
• Company Incorporation – After submitting the documentation the Ministry of Corporate Affairs will issue a certificate of incorporation.
• Application for PAN & TAN – Once the Ministry of Corporate Affairs issue the company incorporation certificate, we will apply for the TAN & PAN.

Benefits of a One Person Company

Separate Legal Entity : An OPC being a recognized as a corporate entity with equity shares, you can raise capital from others like venture capital, financial institutions etc., You will have to convert into a Private limited at this time. OPC need no hold general meetings every year.

Dual Relationship: A One-Person Company needs to have minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passing a special resolution as in case of any other company.

Limited Liability: Limited Liability, the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited.

Conversion into a private limited: If the average turnover in the last 3 financial years is more than Rs. 2 crores or if the capital is more than Rs 50 lakhs, then the OPC must be converted into a private limited. (Mandatory conversion) If you plan to add another shareholder in the OPC, it can be done only after 2 years has elapsed from the date of incorporation. (Voluntary Conversion). We take great pride in working with our clients to resolve their difficult and complicated cases. Our business is understanding your business. We look forward to working with you.