How to Start One Person Company in India? Thinking of starting your own business, but donβt want partners? A One Person Company β¦
Thinking of starting your own business, but donβt want partners? A One Person Company (OPC) is the best option for you! With just one person, you can enjoy the benefits of a private company without too many complications. In this blog, Iβll walk you through everything β who can start an OPC, what documents you need, the process, and more.
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If you are an Indian citizen and want to start a business on your own, you can register a One Person Company (OPC). Itβs perfect for solo entrepreneurs who want to enjoy the benefits of a private company without needing a business partner. Only a person who is an Indian resident can start a One Person Company. You must have lived in India for at least 120 days in the previous year.
There should only be one OPC on a person’s name. You will also need to choose a nominee β someone who will take over the company if anything happens to you.
If you’re planning for one person company registration in Rajasthan, this structure is great for small businesses or startups that want to grow legally and professionally without sharing control with others.
If you’re thinking about one person company registration, donβt worry β the process is simple if you follow it step-by-step. First, you need to get a Digital Signature Certificate (DSC), which is like your online signature. Then, apply for your Director Identification Number (DIN).
After that, pick a unique name for your company and get it approved by the Ministry of Corporate Affairs (MCA). Once the name is approved, you prepare the MoA (Memorandum of Association) and AoA (Articles of Association) β these are just the basic rules and goals of your company.
Then, all documents are submitted through an online form (INC-32) to the Registrar of Companies (RoC). Once everything is verified and approved, you get the Certificate of Incorporation, along with your PAN and TAN.
You will need to submit some mandatory documents when going for one person company registration. These are simple papers that prove your identity, address, and the office location of your business. First, you need your PAN card and Aadhaar card or any ID proof like a passport, driving license, or voter ID. Next, youβll need a passport-size photo and a residential proof such as an electricity bill or bank statement.
You also need to provide proof of your business address. This can be a rent agreement or a No Objection Certificate (NOC) from the property owner, along with a recent electricity bill. Lastly, youβll need to prepare the MOA (Memorandum of Association) and AOA (Articles of Association), which explain your companyβs rules and objectives.
Many people often ask, “Is a One Person Company better than a Sole Proprietorship?” It depends on what your needs and goals are. But in most cases, an OPC gives you more safety and legal benefits.
In a sole proprietorship, your personal belongingsβlike your home or savingsβcould be at risk if the business suffers a loss. But in a One Person Company, your money stays safe. The company is treated as a separate legal person, so only your business investment is at risk β not your personal belongings.
Also, OPCs are more trusted by banks, clients, and investors because they follow proper company laws. This can help you grow faster.
So, if you want to start smart and safe, one person company registration in Rajasthan might be the right step for you.
Still confused? Book your appointment today, and weβll guide you through the entire process step by step. Or you can watch this video – π
Feature | One Person Company (OPC) | Partnership Firm |
---|---|---|
Ownership | Only one person | Minimum two partners |
Legal Identity | Treated as a separate legal entity from the owner | Not considered a separate legal entity from the partners |
Liability | Limited to the ownerβs investment | Partners have unlimited liability |
Control | Complete control with the single owner | Shared control among partners |
Compliance | Follows moderate compliance as per the Companies Act, 2013 | Fewer compliance requirements compared to an OPC |
Tax Benefits | Taxed as a private company | Taxed as a partnership |
Funding Options | Easier to get loans and funding | Can be challenging for big funding |
Suitable For | Solo entrepreneurs who want limited liability | Small businesses with multiple partners |
Once your One Person Company (OPC) is registered, your work doesnβt stop there. There are some legal rules you must follow every year to keep your company active and safe from penalties. These are called compliances.
After your one-person company registration in Rajasthan, you need to:
β’ Submit annual returns and financial statements to the Registrar of Companies (RoC).
β’ Maintain proper records like company books and registers.
β’ Appoint an auditor within 30 days of incorporation.
β’ Conduct a minimum of one board meeting every six months.
β’ File income tax returns every year.
Even though OPCs have fewer rules than private limited companies, these compliances are still very important. If not followed, your company might face fines or even get struck off by the government.
Starting a One Person Company in India is a smart move if you want full control with legal protection. Itβs simple, safe, and perfect for solo entrepreneurs.
We make OPC registration easy, fast, and stress-free β guiding you every step, just like a trusted partner.
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CA Jitendra Agarwal, a Chartered Accountant, is an experienced Income Tax Advisor with a proven track record in tax planning and compliance.
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