Overview of One Person Company Registration with Dhanvitt

A One Person Company (OPC) is an excellent choice for entrepreneurs who want to establish a business with complete control and limited liability. This structure allows a single individual to own and manage the company, offering the benefits of a private limited company while simplifying compliance requirements. An OPC provides the advantage of a separate legal identity, protecting the owner’s personal assets from business liabilities. Dhanvitt streamlines the registration process for One Person Companies, ensuring a smooth experience from start to finish. Our expert team guides you through the essential steps, including document preparation and filing with the Registrar of Companies (ROC), all while adhering to the legal framework outlined in the Companies Act. Upon successful registration, you will receive vital documents such as the Certificate of Incorporation, PAN, and TAN, enabling you to commence business operations with confidence.

Features of One Person Company in India

Following are some important features of One Person Company in India:

1. Continuous Succession:
   
   Although a One Person Company (OPC) is run by a single individual, it offers the advantage of perpetual succession. In the event of the owner’s demise, a designated nominee can take over and manage the business, ensuring its continuity.


2. Limited Liability:
   
   Members of a One Person Company enjoy limited liability protection. Since the OPC is recognized as a distinct legal entity, it provides its members with enhanced safeguards. Their financial responsibility is confined to their shares, meaning they are not personally liable for any debts or losses incurred by the company. In case of insolvency, creditors can pursue the company for recovery, not the individual director.


3. Sole Shareholder and Directorship:
   
   In a One Person Company, one individual acts as both the sole member and director, handling the company's daily management. There is no requirement for an additional executive director to oversee operations. The single member serves as both shareholder and director, taking on full responsibility for the company's affairs.


4. Ownership of Assets:
   
   As a separate legal entity, an OPC can own properties and other assets in its name. This allows the company to hold ownership of various types of assets, such as machinery, real estate, and buildings, without those assets being subject to claims by others. The OPC has the legal capacity to purchase land and other properties directly under its name.

LLP Compliance

Certain requirements are outlined in the Companies Act of 2013 and must be satisfied by the deadlines specified. These rules promote transparency and good governance while protecting the interests of all parties concerned, including the ROC, shareholders, directors, investors, and tax authorities. These compliances are classified as annual compliances, recurring compliances, one-time post-incorporation compliances, and event-based compliances. The first category of one-time compliances has already been thoroughly discussed.

Compliance

A one-person company must immediately comply with particular legal requirements established in the Companies Act of 2013 and, if necessary, secure local registrations in accordance with the state legislation of the state in which the One Person Company is conducting business. The full list of compliances, together with their timeframes, is shown below. Contact one of our startup advisors for more in-depth conversations.