FAQs on One Person Company

Q. How to convert sole proprietorship into One Person Company (OPC) in India?

By Paras Mehra 09 Feb 2017

If you are running a sole proprietorship firm and wants to convert it into One Person Company, then we need to convert it according to the Income Tax Act, 1961 so that you can save your tax on the conversion process.

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Q. How does taxation work over One Person Company (OPC) in India?

By Paras Mehra 09 Feb 2017

Taxation under One Person Company is very similar to the Private Limited Company under which tax is imposed on profits earned by the company @ 29%. Further, the tax rates is further reduced to 25% for Small and Medium Enterprises.

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Q. What are the documents required for bank account opening of One Person Company (OPC) in India?

By Paras Mehra 09 Feb 2017

The lists of documents required for opening the bank account of One person (OPC) includes Certificate of Incorporation, PAN Acknowledgement, MOA, AOA, Resolution, INC 3 of Nominee

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Q. Why startup should not choose One Person Company (OPC) as their form of business?

By Paras Mehra 09 Feb 2017

One Person Company lack this skill as there cannot be more than one shareholder in the company and hence it cannot raise funding by selling stake to the investors.

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Q. What is the minimum capital requirement for One Person Company (OPC) registration in India?

By Paras Mehra 09 Feb 2017

There is no minimum capital requirement to register a One Person Company (OPC) in India. You can register the One Person Company (OPC) as per your choice of capital.

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Q. Can a foreign individual/NRI’s start One Person Company in India?

By Paras Mehra 10 Feb 2017

No foreign individual/Non-resident Indian (NRI) can start the One Person Company (OPC) in India. As per law, only resident Individual person can start the One Person Company (OPC) in India.

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Q. How to convert One Person Company (OPC) into Private Limited Company?

By Paras Mehra 10 Feb 2017

Conversion of One Person Company into a Private Limited Company is done either voluntary or mandatory. It is done by filing two e-forms to the ROC, i.e. INC 5 and INC 6.

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Q. What is a total time taken to register One Person Company (OPC) in India?

By Paras Mehra 10 Feb 2017

The total time taken to register the One Person Company (OPC) in India is around 10 to 12 days. However, make sure you fulfils all the requirement for faster processing of application.

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