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Overview

One person company is where a company can be started with 1 director and 1 member or both. It is governed by the Companies Act 2013. This kind of company was introduced to encourage small businesses that can enjoy the benefits of both company and sole proprietorship features.

Advantages of One-Person Company

Fund Raising: It is easy to raise funds for OPC company as it is a private company and financial institutions would like to invest in these types of companies.
Limited Liability: As OPC is a private company, it enjoys separate legal status from its member, and liability is limited to the contribution of its member.
Simple Structure: To start OPC, you require just 1 member who can play both the roles of director and member, and the procedure for registration is simple and less time-consuming.
Absolute Control: Management of OPC is simple, as it is formed by a single person and there is no conflict in decision-making like in other companies.
Perpetual Succession: While registering, the member should appoint a nominee to continue business after his or her retirement or death.
Compliances Exemption: Compliances for OPC come with certain exemptions which are provided by the Companies Act 2013, for the benefit of OPC.

What You Get

Bronze Package: Appointment of Auditor within 30 days and filling ADT-1

Preparation and filing of INC-20A within 180 days from the date of incorporation

Preparation and filing of AOC-4 (Financial Statements) within 180 days of FY close

Preparation and filing of MGT-7 (Annual Return) within 180 days of FY close

Preparation and filing of DPT-3 (Outstanding Loans summary information)

Director KYC Through Form DIR-3 KYC or Web Based KYC, as Applicable

Process & Timeline

After incorporation of a business, the company should file form INC 20A with the ROC for commencement of business within 180 days.

The financial year for OPC company starts on the 1st of April and ends on the 31st of March every year.

Stamp duty should be paid within 30 days of issuing the share certificate.

Statutory Exemption: The company is not required to file an annual return within 60 days of AGM.

The company must conduct board meetings twice in the year [half-yearly once] and the gap between 2 meetings should not be less than 90 days.