A new concept of One Person Company (OPC) is introduced in Ahmedabad, Gujarat by the Companies Act 2013. In the case of a private limited company, there is the requirement of at least 2 members and 2 directors and in the case of a public limited company, there is the requirement of at least 7 members and 3 directors are required but in the case of One Person Company only single person is required to incorporate a company in Ahmedabad, Gujarat.

Before the introduction of such a concept, a single person was not eligible to create a company in Ahmedabad, Gujarat but now he can start a business in the name of a company.This concept is introduced with the intention to promote the micro business. The One Person Company in Ahmedabad, Gujarat contains the features of a company and the benefits of a sole proprietorship. The concept of One Person Company is very useful for small businesses in Ahmedabad, Gujarat.

In this article, we will discuss the following points in the respect of a One Person Company in Ahmedabad, Gujarat

  • What is One Person Company?
  • Features of One Person Company.
  • Advantages of One Person Company.
  • Disadvantages of One Person Company.
  • Documents required for the registration of One Person Company.
  • Procedure for the registration of a One Person Company.

What is the One Person Company in Ahmedabad, Gujarat?

As per section 2 (62) of the Companies Act 2013, “One Person Company means a company which has only one person as a member”.

One Person Company in Ahmedabad, Gujarat can be formed with 1 director and 1 member. As per the provision of Companies Act 2013, a single person can act as a member as well as a director in a company so in the case of a One Person Company only a single person can start its business in Ahmedabad, Gujarat and be registered as a One Person Company (OPC).

In the case of One Person Company, there are lesser legal and statutory requirements in Ahmedabad, Gujarat in comparison to the private limited company.

Features of One Person Company in Ahmedabad, Gujarat

The features of a One Person Company (OPC) in Ahmedabad, Gujarat are as follow–

  • Single Member– In the case of One Person Company (OPC), there is only a single member or shareholder.
  • Private Company-As per section 3 (1) (c ) of the Companies Act 2013, a single person can create a company for a lawful purpose and as per this section One Person Company (OPC) is also considered as a private limited company.
  • Minimum One Director– In the case of One Person Company (OPC), there is the requirement of at least one director and the maximum number of directors will be 15.
  • Nominee– In the case of One Person Company (OPC), there is a unique feature is that when the member of such One Person Company (OPC) is registering the One Person Company (OPC), he will mention the name of a nominee.
  • No Minimum Paid Up Share Capital– In the case of a One Person Company (OPC), there is no prescribed amount of minimum paid up share capital as per the Companies Act 2013.
  • No Perpetual Succession– In the case of One Person Company (OPC), there is only a single person who will perform all the business activities, in the case of death of such person if the nominee rejects to become the sole member of such One Person Company (OPC) then such company will be closed.
  • Special Privileges– In the respect of One Person Company (OPC), there are several privileges and exemptions are provided under the Companies Act 2013.
  • Annual Return– As per section 92 of the Companies Act 2013, the annual return is required to be filed annually and it should be signed by the company secretary and the board of directors of the company. But in the case of One Person Company (OPC), the annual return is required to be signed by the director of the company.

Advantages of One Person Company in Ahmedabad, Gujarat

The benefits or the advantages of the One Person Company (OPC) in Ahmedabad, Gujarat are as follow-

  • Legal Status– The One Person Company (OPC) in Ahmedabad, Gujarat contains a separate legal existence and it is a separate legal entity. It is separate from its member.
  • Limited Liability– In the case of One Person Company (OPC) in Ahmedabad, Gujarat, the liability of the member is limited up to the amount of the investment which is made by him in the form of shares i.e. the member will not use his personal assets for the payment ofthe dues or liabilities of the company.
  • Less Compliances– The Companies Act 2013, there are certain exemptions are provided to the One Person Company (OPC) in Ahmedabad, Gujarat just like in the case of One Person Company (OPC) there is no need to prepare a Cash flow statement, etc.
  • Easy to Obtain Funds-The One Person Company (OPC) is registered as a private limited company and it will be eligible to obtain the funds banks, financial institutions, venture capitals, incubators, and angel investors, etc. on the basis of this the One Person Company (OPC) can easily obtain the funds.
  • Easy Incorporation– The incorporation of aOne Person Company (OPC) is very easy because in the case of One Person Company (OPC) there is only a single person and a nominee and there is a very less legal and statutory requirement for the registration of One Person Company (OPC).
  • Easy to sale One Person Company (OPC)– If the person wants to sell it, can sell it very easily due to less documentation work.
  • Less Capital Contribution– In the case of One Person Company (OPC), to start the business there is the requirement of only 1 lakh as authorized capital but there is no minimum limit of the paid up share capital.
  • Easy to Manage– In the case of a One Person Company (OPC),there is only a single person who will perform all the business activities and he will take all the decisions independently and quickly as per the requirement.
  • Annual General Meeting– As per the provision of the Companies Act 2013, every company is required to hold an annual general every year but in the case of the One Person Company (OPC), there is no requirement to conduct an annual general meeting.
  • Provisions relating to the Independent Directors are not applicable on the One Person Company (OPC).
  • There are many provisions relating to the meeting and quorums are not applicable on the One Person Company (OPC).

Disadvantages of One Person Company (OPC) in Ahmedabad, Gujarat

There are some limitation or disadvantages in the case of One Person Company in Ahmedabad, Gujarat

  • Only for small businesses- The concept of One Person Company in Ahmedabad, Gujarat is suitable for small businesses only. If any person wants to grow his business and extend the business activities then the option of One Person Company (OPC) is not suitable for him.
  • The One Person Company (OPC) in Ahmedabad, Gujarat is not eligible to perform non-banking financial investment activities and the One Person Company (OPC) cannot be converted into a company with a charitable objective.
  • In the case of One Person Company (OPC), there is only one person who will work as a director of the company, member of the company and he will take all the decisions of the company so due to this there is no clear distinction between ownership and management.

Documents required for the registration of One Person Company (OPC) in Ahmedabad, Gujarat

There is a list of the documents which are required for the registration of a One Person Company (OPC) in Ahmedabad, Gujarat

  • Passport Size Photograph of the Member.
  • Copy of PAN Card of the Member.
  • Identity Proof of the owner (Copy of Aadhaar Card, Copy of Voter ID).
  • Address proof of the office address (rent agreement and NOC from the owner if it is rented property and sale deed if it is owned property).
  • The latest bank statement and any other bill which contain the name of the owner of such a company.

Procedure for the registration of a One Person Company (OPC) in Ahmedabad, Gujarat

The procedure for the registration of a One Person Company (OPC) in Ahmedabad, Gujarat is as follow-

  • Apply for Digital Signature Certificate (DSC)-Before making an application for the registration of a One Person Company (OPC), the proposed director will apply for Digital Signature Certificate (DSC)because now all the activities for the registration of a company are done online and digital signatures are required for making the application of registration so first, we will apply for the Digital Signature Certificate (DSC). For making the application for Digital Signature Certificate (DSC) the following documents are required-
    1. Address Proof of such person.
    2. Passport Size Photograph of the proposed director.
    3. Copy of PAN Cardof the proposed director.
    4. Email Id of the proposed director.
    5. Phone Number of the proposed director.
  • Apply for Directors Identification Number (DIN)-When the person obtains the DSC then he will apply for the Directors Identification Number (DIN) and such application is made in the Form SPICe and such person will provide all the required details and submit such form along with required documents.
  • Application for Name Approval- After obtaining the Directors Identification Number (DIN), the person will make an application for the approval of the name. The name of the One Person Company (OPC) will be in the form of “XYZ(OPC) Private Limited”. For the approval of name the person will file Form SPICe+ 32 application and he will submit such form along with the unique name.
  • Preparation of Required Documents- We will prepare and submit all these required documents to the register of the company within the specified time limit-
    1. The MOA (Memorandum of Associations) of the company will contain the objective of such a company and all the relevant details related to the company.
    2. The AOA (Article of Associations) of the company, which will contain rules and regulations of the companies.

In the case of One Person Company, the person will appoint a nominee and after the death of such person, the nominee will perform all the business activities on his behalf. In the respect of this, the person will file his consent in Form INC-3 along with PAN and Aadhaar card.

  1. Address Proof of the registered office along with the proof of ownership (in it is owned property) or rent agreement (in it is rented property).
  2. The person will submit the declaration and the consent of the proposed director by the Form INC-9 and DIR-12.
  3. He will also submit a declaration that is certified by a professional that all the compliances are compiled properly.
  • Filing of Required Forms with MCA– After the preparation of all the required documents he will submit the Form SPICe and upload all these required documents (discuss above) to the MCA site for approval.
  • TAN & PAN– In the case of a One Person Company, there is no need to make a separate application for the TAN & PAN of the One Person Company. The TAN & PAN generated automatically at the time of incorporation of the One Person Company.
  • Issue a Certificate of Incorporation– When the person submit all the required forms and upload all the relevant documents and after the investigation, the registrar of companies will issue a certificate of registration.

FAQs on the One Person Company in Ahmedabad, Gujarat

What is One Person Company (OPC) in Ahmedabad, Gujarat?

Answer- It is governed under the Companies Act 2013. As per section 2 (62) of the Companies Act 2013, “One Person Company means a company which has only one person as a member”.

Who is eligible to become a member of a One Person Company (OPC) in Ahmedabad, Gujarat?

Answer- The person, who is a citizen of Ahmedabad, Gujarat and resident of Ahmedabad, Gujarat will be eligible to become a member of a One Person Company (OPC).

How many persons are required for a One Person Company (OPC) in Ahmedabad, Gujarat?

Answer- To create a One Person Company, there is the requirement of a single person and such a single person will act as a director as well as a member of the company.

What is the role of the nominee in the One Person Company(OPC) in Ahmedabad, Gujarat?

Answer- In the case of one Person Company there is only a single person who will perform all the business activities of the business as a member as well as a director of the company but after his death who will manager all such business activities so for the purpose of this such person appoint a person who will become the member of such One Person Company after his death and perform all the business activities.

What is Annual Return?

Answer- Annual return is a document which contains all the details of the turnover of the company, profit earned by the company, members of the company, shareholding of the members in the company, and the composition of the company, etc. The annual return of the company is required to be file annually to registrar of the company and it should be signed by the directors of the company.

Whether the audit is compulsory in the case of One Person Company(OPC)?

Answer- Yes, in the case of One Person Company the audit is mandatory. For the audit, the company will appoint a chartered accountant as an auditor. The auditor will verify all the books of accounts of such One Person Company.

Whether registration under GST is mandatory for the One Person Company(OPC)?

Answer- If the One Person Company is supplying the goods or services or both in another state irrespective of the amount of turnover, it will require to be registered under GST. for further details, please refer to “GST registration process”

Can One Person Company in Ahmedabad, Gujarat can raise the funds?

Answer- The One Person Company (OPC) is registered as a private limited company and it will be eligible to obtain the funds banks, financial institutions, venture capitals, incubators, and angel investors, etc. on the basis of this the One Person Company (OPC) can easily obtain the funds.

How much capital is required to start a One Person Company (OPC) in Ahmedabad, Gujarat?

Answer- In the case of One Person Company (OPC) in Ahmedabad, Gujarat, to start the business there is the requirement of only 1 lakh as authorized capital but there is no minimum limit of the paid up share capital.

Who cannot incorporate a One Person Company (OPC) in Ahmedabad, Gujarat?

Answer – The following persons are not eligible to create a One Person Company (OPC)-

  1. Minor
  2. The person of an unsound mind
  3. Foreign citizen
  4. Ahmedabad, Gujaratn non resident

What are the benefits of incorporation of a One Person Company (OPC) in Ahmedabad, Gujarat?

Answer- The benefits/advantages of One Person Company are as follow-

  1. Legal Status
  2. Limited Liability
  3. Less Compliance
  4. Easy to Obtain Funds
  5. Easy Incorporation
  6. Easy to sale One Person Company
  7. Less Capital Contribution
  8. Easy to Manage
  9. Special Privileges, etc.