One Person Company (OPC) Registration Online | Admond World

One Person Company Registration

Under the Companies Act, One Person Company in India was introduced in 2013 to support entrepreneurs who are capable of starting a venture by allowing them to create a single person economic entity. One of the massive 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 maintaining and incorporating a Limited Liability Partnership (LLP) or a Private Limited 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.

Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For example, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company - who will become the owner of the OPC in case the sole Director is disabled. One Person Company must be reconstructed into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of every Financial Year like all types of Companies. Therefore, it is important for the Entrepreneur to precisely consider the features of a One Person Company prior to incorporation.

Admond World is the market leader in company name registration services in India, offering a variety of company registration like one person company registration, private limited company registration, Nidhi Company Registration, Indian Subsidiary registration, Producer Company Registration and Section 8 Company Registration. It takes around 10-15 working days to complete a one person company, subject to government processing time and client document submission. Get a free consultation for business setup and one person company registration in Delhi by scheduling an appointment with an Admond World Advisor.

What is One Person Company Registration ?

A new approach has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Limited Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single human could not incorporate a Company previously.

But as per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member. It is form of a company where the compliance requirements are lesser than that of a private company.

Members of a company are nothing but subscribers to its, shareholders or memorandum of association. So, an OPC is effectively a company that has only one stockholder as its member.

Such companies are generally created when there is only one founder for the business. Entrepreneurs whose businesses lie in early stages prefer to build OPCs instead of sole proprietorship business because of the several advantages that OPCs offer.

Required documents for One Person Company Registration