One Person CompanyRegistration

If you're a single entrepreneur, then you can open a one-person company and enjoy liability protection for your personal assets. Good for new businesses and proprietors who are looking to get legal recognition with low-risk management flexibility.

Well, there isn't any specified amount for opening a one-person company. You can simply start your business with just INR 1 as your paid-up capital. Very comfortable option for startup founders. In practical situations, you need at least INR 1 lakh as an initial deposit.

Not just one, but there are several advantages of incorporating an OPC like 100% ownership, good credibility in the market, legal recognition, limited liability, and ease of compliance (not strict like a public limited company).

Of course, you can open a company in India as a non-resident if you are an Indian citizen; and have stayed for at least 120 days in the preceding financial year.

You can become a member of one OPC at a given time. Also, you cannot be a nominee in more than one entity. These rules are made to make sure that a flexible business structure is not misused as shell companies in India.

Unlike corporate tax registration (PAN), you don't need a GST number unless you're a goods supplier with over INR 40 lakhs (20 lakhs in some states) in taxable supplies, a service provider with INR 20 lakhs (10 lakhs in some states) and more in a year, an online marketplace or e-commerce operator, or a trader with interstate supplies in more than one state. Also, you can voluntarily register if you want to benefit from tax credits and business visibility, irrespective of your limits.

Not a problem- you can easily convert your one-person entity into a Pvt Ltd. All you need is one more member, most likely a director, a slight change/update in the MOA/AOA, and application filing via the INC-6 (now merged via the E-Con with the ROC). Also, the earlier mandatory threshold for company conversion of the paid capital exceeding INR 50 lakhs or INR 2 crore or more as annual turnover in the last three years is also removed by the MCA's proposal.

All in all, the authority has eliminated specific criminal liability provisions, removed the need for an affidavit for converting, simplified KYC paperwork, less compliance burden, and ease of filing through the SPICe+.

As per the new updates, as a company owner, you don't have to go through the hassle of Form DIR-12 because those details will be included via the SPICe+. The DIN application is increased to 5 from 3 directors. After signing the memorandum, the subscriber automatically agrees to be a director.

Not necessarily at the time of company registration. You have the option of applying for the EPFO/ESIC and opening a corporate bank account, but it's totally up to you if you want to complete these tasks separately.

You cannot get any foreign investment for your OPC as per the FDI policies, but if you are seeking investment/funds from foreign sources, then you can go for the old school private limited company by adding one or more shareholders/directors to your business. That being said, as an OPC, you can still engage in export and earn money through foreign exchange from your international clients.

All you need is just your Aadhaar card, PAN, address and photo ID of the director, lease/rental agreement of the registered office address, and an NOC from the owner if the office space is a rental.

Not just better, it's one of the best choices that you can make by choosing an OPC over a sole proprietorship because the former offers liability protection, meaning in case of a business loss, you don't have to worry about the seizure of your personal assets. Secondly, your business will have a perpetual existence- separate from you. Lastly, with better credibility via the ROC, you can get funds much more easily than a sole proprietorship.

Depends on what you opt for as a domestic company in the country: Most companies go for 22% with a 10% surcharge, given you can't claim any exemptions or deductions. Alternatively, you will have a 25% rate if your annual turnover is under INR 400 crore, and a 30% rate if it is over INR 400 crore.

Post one person company registration, there are a few filings that you need to complete each year. This includes submitting your AOC-4 financial statements, MGT-7A annual returns, ITR-6 income tax return, DIR-3 director's KYC, DPT-3 return of deposits, and some GST/TDS monthly and quarterly returns.