One Person Company

Lawgical Guru, helps in Registration of One Person Company from anywhere in India. Our experts have incorporated 50+ One Person Company and have huge experience in setting up such form. We also provide all sorts of legal assistance in Starting and Setting up of New Business.

One Person Company (OPC) this concept is new in India, it has been very popular abroad, including in Singapore, USA, even Europe. One Person Company or OPC registration requires a minimum of one Director which may extend to a maximum of 15 directors, and with only one subscriber.

Both the Director and Subscriber may or may not be the same person, with no minimum paid-up capital limit. As per provision of section 2(62) of the Companies Act, 2013 defined (62) “one person company” means a company which has only one person as member. – shall be eligible to incorporate a One Person Company; – shall be a nominee for the sole member of a One Person Company.

What is the tax rate for one person company OPC?

“OPC would typically be taxable at 30% (plus surcharge and cess). Separately, on distribution of profits by OPC to its sole member, OPC would be subject to dividend distribution tax at 20.56%

OPC Companies that supply goods or services via an e-commerce platform must apply for GST Registration.

Penalty:-

If an OPC or any officer of such company contravenes the provisions of Companies Incorporation Rules, 2014, such contravening party will be punishable with fine which may extend to Rs. 10,000/- and with a further fine which may extend to Rs. 1000 for every day after the first during which such contravention continues.

Conversion of one person company into private company or public company by attaching documents:-

(a) Altered MOA and AOA;

(b) Copy of resolution;

(c) The list of proposed members and its directors along with consent;

(d) list of creditors; and

(e) The latest audited balance sheet and profit and loss account.

On being satisfied that the requirements stated herein have been complied with, the Registrar shall approve the form and issue the Certificate.

Advantages:

Separate legal entity – A One Person Company is registered under the Companies Act with an entity distinct from its owner and Directors, i.e., Separate Legal Entity.

Ease Of Compliance – Compliances for Meetings & E-returns filling as per the Companies Act 2013 are less in number as compared to that for a Private Limited Company.

Single Hand Ownership – A One Person Company can be incorporated with a single person who may act as a director and a shareholder at the same time. However, a nomination is additionally required.