If you are a solo entrepreneur looking to establish a corporate identity, One Person Company Registration (OPC) is the perfect choice for you. It allows a single individual to operate as a company with the benefits of limited liability and corporate recognition. At Sharmila Mahesh Babu & Associates, we specialize in seamless One Person Company Registration in Chennai, guiding you through every step of the process to ensure compliance with legal requirements.
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What is One Person Company (OPC)?
A One Person Company (OPC) is a business structure introduced under the Companies Act, 2013, designed for single entrepreneurs. Unlike sole proprietorships, OPCs offer limited liability protection, ensuring the personal assets of the owner remain secure. This model is ideal for small businesses, freelancers, consultants, and startup owners who wish to operate with corporate credibility.
Key Features of One Person Company:
- Single ownership with corporate benefits
- Limited liability for the owner
- Separate legal entity status
- Perpetual succession
- Minimal compliance requirements
Benefits of One Person Company Registration
1. Limited Liability Protection
Your personal assets remain safe as the liability of the company is restricted to the business investments.
2. Separate Legal Entity
An OPC has a distinct identity, making it eligible to enter contracts and own property in its name.
3. Perpetual Succession
Even in the event of the owner’s demise, the nominated director ensures business continuity.
4. Minimal Compliance Requirements
Compared to private limited companies, OPCs have fewer regulatory requirements, making them easier to manage.
5.Tax Advantages:
An OPC is eligible for various tax deductions and benefits compared to sole proprietorships.
6.Simplified Compliance:
OPCs face fewer compliance requirements than private limited companies.
7. Complete Control:
With only one shareholder, you have full control over business decisions.
Eligibility Criteria for One Person Company Registration
Before proceeding with One Person Company Registration, ensure you meet the following criteria:
- Only a natural Indian citizen and resident can register an OPC.
- The owner must appoint a nominee who will take over in case of incapacitation.
- The company cannot engage in non-banking financial investment activities.
- An individual can incorporate only one OPC at a time.
Why OPC is Perfect for Entrepreneurs and Startups
The One Person Company model is revolutionizing how small businesses operate in India. It bridges the gap between sole proprietorships and private limited companies, offering entrepreneurs the freedom to run their business independently while enjoying the benefits of a corporate structure.
Ideal for:
- Freelancers and consultants
- E-commerce startups
- Small traders and manufacturers
- Professionals like designers, photographers, and IT developers
Documents Required for One Person Company Registration
To ensure a smooth One Person Company Registration process, you must provide the following documents:
For the Director & Nominee:
- PAN Card
- Aadhaar Card
- Address Proof (Bank Statement/Electricity Bill/Telephone Bill)
- Passport-size Photograph
For Registered Office Address:
- Rent Agreement (if rented)
- NOC from the property owner
- Latest Utility Bill (Electricity/Water)
Step-by-Step Process of One Person Company Registration
Digital Signature Certificate (DSC) Application
Since OPC registration is done online, obtaining a DSC is the first step to signing electronic documents securely.
Director Identification Number (DIN) Application
The director must obtain a DIN, a unique identification number issued by the Ministry of Corporate Affairs (MCA).
Name Approval
We assist in applying for your company’s name approval through the RUN (Reserve Unique Name) service of the MCA.
Filing Incorporation Documents
Once the name is approved, we prepare and submit incorporation documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), along with required declarations and affidavits
Certificate of Incorporation Issuance
After verification by the Registrar of Companies (ROC), a Certificate of Incorporation is issued, marking the official registration of your One Person Company.
PAN & TAN Application
We assist in obtaining the company’s PAN and TAN, which are essential for tax compliance and transactions.
Opening a Business Bank Account
With the Certificate of Incorporation, PAN, and other necessary documents, you can open a corporate bank account for your OPC.
Post-Registration Compliance for One Person Company
Once One Person Company Registration is complete, the following compliance requirements must be fulfilled:
- Annual Filing with ROC: OPCs must file annual financial statements and returns with the MCA.
- Income Tax Return Filing: An annual tax return must be filed with the Income Tax Department.
- Statutory Audit: If the annual turnover exceeds ₹50 lakh, an OPC must undergo a statutory audit.
- GST Registration & Returns: If turnover exceeds ₹20 lakh, GST registration and periodic returns are mandatory.
Why Choose Sharmila Mahesh Babu & Associates for One Person Company Registration?
At Sharmila Mahesh Babu & Associates, we offer professional and efficient One Person Company Registration services in Chennai. Here’s why we are the preferred choice for business owners:
- Experienced Company Secretaries – Our team ensures compliance with all legal and regulatory requirements.
- End-to-End Support – From documentation to final incorporation, we handle the entire process.
- Affordable Pricing – Transparent and competitive pricing with no hidden charges.
- Fast & Hassle-Free Process – We streamline the registration process, reducing paperwork and time delays.
- Post-Registration Guidance – We provide continued support for compliance and business growth.
Frequently Asked Questions (FAQs)
1. How long does One Person Company Registration take?
Typically, it takes 7-10 working days to complete the registration process, provided all documents are in order.
2. Can I convert an OPC into a Private Limited Company?
Yes, an OPC can be converted into a Private Limited Company voluntarily or mandatorily when turnover exceeds ₹2 crore.
3. Is it necessary to appoint a nominee in an OPC?
Yes, appointing a nominee is mandatory to ensure business continuity in case of unforeseen circumstances.
4. What are the tax implications for an OPC?
An OPC is taxed at a flat rate of 25% (as per corporate tax laws), plus applicable cess and surcharges.
5. Do I need a commercial space to register an OPC?
No, you can register an OPC using your residential address as the registered office.
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