How to Start and Operate One Person Company in India?

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How to Start and Operate One Person Company in
India?
Today, many youngsters come forward to start
their own businesses because of the
simplification of OPC registration in India.
Starting a one-person company is more beneficial
than other forms of companies for an individual.
It is one of the safest options for those who
want to invest less capital and register a
company. Many individuals have no idea about
starting a new one-person company. This blog
explains the procedure of starting a one-person
company in India and the ways to operate it
smoothly. Meaning of One Person Company OPC or
One Person Company is a type of company
established by a single person. An individual
acts as a shareholder and director in the
company. OPC is a kind of
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• sole proprietorship involving only one person. It
  also gives sole authority to one person to
  control the whole business.
• The concept of One- Person Company came into
  existence a few years back. The main governing
  act of OPC is the Companies Act 2013. OPC has
  fewer compliance requirements than other types
  of companies. It also gives limited liabilities
  to the member.
• Who is eligible to form One- Person Company?
• There are some criteria to form a One- Person
  Company such as
• Individuals only from India can only start an
  OPC.
• One person cannot start more than 1 OPC in India.
• Minor can neither be a member nor a nominee in
  one Person Company.
• Requirements to start an OPC
• At least one shareholder and director and one
  nominee are required to start a One-Person
  company. The minimum authorized capital to start
  a private limited company is INR 1 lakh. You
  should also offer certain documents to start an
  OPC such as
• A hard copy of the Class-II form fully filled.
• If you are a foreign national, it is necessary to
  give a self-attested copy of any ID proof such
  as a Passport.
• You have to provide a self-attested copy of any
  address proof which includes a ration card,
  passport, Aadhar card, voter ID, utility bill,
  and drivers license.
• What is the procedure for one-person company
  registration?
• Today, a One- person Company Registration has
  become much simpler than before. It is also an
  affordable procedure to begin a one-person
  company through an online site. You do not need
  any other person to form a One-person Company.
  Any individual can start One Person Company by
  taking a few steps such as

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• The first step is to check eligibility for
  registering a one-person company and the
  documents required.
• Then you must choose the professional who will
  help to find a unique name for your company.
• The next thing you must do is apply for the DIN
  and DSC of every director.
• Now, the professionals will prepare all the
  important ROC forms like AOA, MOA, COB, DIR, and
  others. Then they will file these documents
  before the Ministry of Corporate Affairs (MCA).
• The next step is to apply for TAN and PAN for
  your new one-person company.
• Then ROC will issue an incorporation certificate
• Finally, you have to open a new bank account and
  begin business operations.
• Following these steps will help in creating One
  Person Company. You can also choose a
  professional to complete the process of
  registration for OPC.
• Benefits of registration of OPC in India
• One-Person company incorporation is good for
  individuals who want to start business
  activities with low capital. There are several
  advantages of One Person Company in India such
  as
• Simple administration
• A one-person company involves one person only. It
  is simple to handle OPCs because of their small
  size. Apart from that, it is also easy to control
  the full business in the case of a one-person
  company.
• Security
• As the name of your company is unique, no other
  company can copy your companys name. There are
  no chances of a security breach in the case of a
  one- person company.
• No complicated tax formalities

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• Companies such as Private companies and public
  companies have complicated tax formalities. So,
  it is easy for individuals to file income tax in
  the case of OPC. There are no tax complications
  in the case of One Person Company.
• Separate legal status
• Registering a one-person company gives a separate
  legal entity to the company. So, the member is
  not liable to pay for any loss to the company.
  Due to the limited liability of the members, one
  does not have to pay for losses. Personal
  security is not at stake in the case of a
  one-person company. Moreover, it is a safe
  option to start a one-person company as it has
  limited liability.
• Helps in getting loans for business
• After registration of OPC, it is easy to get bank
  loans easily. Apart from that, you will also get
  tax credit in the case of OPC. You can also
  expand and grow your small business in many
  other states with easy registration.
• No third-party
• Registration of a One-person Company involves
  only one person. There is no intervention of a
  third party or outsider in your business. So, it
  is easy to manage all the business operations
  without the interference of third-party or
  outsiders. Moreover, the registration of OPC
  gives authority to manage the whole company.
• Other reasons to choose OPC registration
• Many individuals go for One-person Company
  registration because of other reasons such as
• After the death of a member, another person will
  become a nominee. In the case of the death of a
  member, the nominee will manage the whole
  company and its operations.
• There is no requirement of holding an annual
  general meeting every year in a One-person
  Company.
• There is less paperwork involved in the formation
  of a one-person company.

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• There is no risk of putting personal property at
  stake in the case of loss in the company.
• Compliance in a One-person Company is less as
  compared to other forms of companies.
• You will enjoy a limited liability by registering
  OPC.
• You can also get loans easily to expand your
  business activities.