One Person Company Registration
A One Person Company is a company which contains exactly one member. It is a separate legal entity from its promoter and the promoter has limited liability.
Entrepreneurs who are capable of starting a venture on their own can make use of One Person Company (OPC) in India. In one person company, there is only one shareholder who is an Indian citizen and Indian resident i.e. stayed in India for at least 182 days in the preceding year.
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Benefits of One Person Company Registration
Limited liabilities
Better than Sole Proprietorship
Easy transfer of ownership
Ability to own property
Documents Required for One Person Company
- Identity proof of director and nominee(PAN card)
- Address proof of director and nominee(Aadhar card, Driving Licence, Electricity bill, Passport)
- Address proof of office (Rent agreement or sale deed, electricity bill, property tax receipt)
- NOC from landlord
- DSC and DIN of director
- Passport photo of director
One Person Company Registration Package
Procedure to Register One Person Company
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What People Frequently Ask…
What function does a nominee perform in a One Person Company?
A nominee is a person who joins the business in the event that the promoter passes away or is rendered incapable.
How much is the permitted capital fee?
The total number of shares that a company may issue to its shareholders is known as its authorised capital. A Company must pay the authorities an issued capital fee before issuing shares.
What does it cost to maintain a One Person Company?
Slightly less money is spent on an OPC than on a private limited company. You'll spend about ₹12,000 to incorporate, followed by about ₹15,000 per year in compliance fees and the cost of an auditor to review your financial records.
What exactly is a dead company?
If the annual compliances are not met, the company becomes dormant and can eventually be struck off. It takes upto 20 years to be revived.
What is a DSC?
While submitting the document online, the DSC electronically confirms the sender's or signer's identity. Some of the application documents must be signed by the directors using their digital signatures, as per the MCA.
Can I launch multiple OPCs at once?
No, a person can only form one OPC at once. In an OPC, the nominee is also covered by this rule.
What tax benefits are available to an OPC?
There are no general benefits, but some benefits that are industry-specific. In addition to the minimum alternative tax and dividend distribution tax, profits are subject to a flat tax of 30%.
What is the difference between a one person company and sole proprietorship company?
Even though both an OPC and a sole proprietorship have only one person or member, they operate in very different ways. OPC is treated as a company with limited liability and the ability to own assets and property. A sole proprietorship, on the other hand, lacks these characteristics. As a result, there is no perpetual succession in the business, and the sole proprietor bears infinite responsibility.
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