What is One percent Company Registration ?
One Person Company (OPC) Registration is a legal process through which a single individual can establish a company with limited liability in India. An OPC allows a solo entrepreneur to own and manage a business without needing to share control or ownership with others. This structure combines the benefits of a sole proprietorship and a private limited company, providing the entrepreneur with limited liability protection while maintaining full control over the company.
Key Features of LLP
Single Shareholder
Limited Liability
Separate Legal Entity
Nominee Director
No Minimum Paid-Up Capital
Perpetual Succession
Less Compliance
Requirements for (OPC) Registration
Start Small, Dream Big
Only one person can act as the shareholder and director of the OPC. The same individual cannot incorporate more than one OPC or be a nominee in more than one OPC.
The shareholder must appoint a nominee who will become the shareholder in case of death or incapacitation of the original owner. The nominee must provide their consent in writing.
The shareholder must act as the sole director or appoint other directors, but the total number of directors cannot exceed 15.
The OPC must have a registered office in India where official correspondence can be sent.
The shareholder must obtain a DSC for signing electronic documents during the registration process
The sole director must have a DIN, which can be applied for during the registration process if not already obtained.
Documents Required for OPC Registration
Pave The Way of Legal Pprotection
Aadhar & Pan
One Directors
Education
Education Qualification of all DIrectors
Company Name
Minimum Two Name of Company for Name approval
Residence Proof
Rent agreement and NOC for last 30 Days if Rented
Digital SIgnature
Personal DSC for all Director
Director Identification Number (DIN)
DIN is Required
Advantages
The Way of Sustainable Growth and Resilence
Limited Liability Protection
Separate Legal Entity
Tax Benefits
Full Control
Ease of Compliance
Tax Benifits
Disadvantages
Company Carries Risks
Ownership Restrictions
An OPC can have only one shareholder, limiting the ability to raise capital by bringing in partners or investors.
Limited Growth Potential:
OPCs may face limitations in scaling due to restrictions on ownership and investment.
Higher Compliance Costs
While compliance requirements are lower than for other companies, they are still higher than those for sole proprietorships.
Conversion to Private Limited Company
If an OPC’s paid-up share capital exceeds ₹50 lakh or its average annual turnover exceeds ₹2 crore, it must be converted into a private limited company.
Not Suitable for Large Scale Operations
OPCs are best suited for small businesses and are not ideal for large-scale operations due to restrictions on expansion.
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