An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.

One Person Company Registration India can be done only by Indian residents, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs. In this, there is only one person as the owner and manager.

All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC. For Directors and Nominee: Pan Card ID proof- Any one (Voter ID/Aadhar Card/Driving License/Passport) Address Proof- Any one(Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement).

There is no difference in capital requirement between an One Person Company Registration India and a private limited company. It needs an authorized capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.

No general advantages; though some industry-specific advantages are available. Tax is to be paid at flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate Tax.

The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.

An OPC has certain limitations. The person starting the business is both the director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too. Therefore, one person can’t be the nominee of two OPC’s simuntaneously.