Meaning

A one person company is a company which contains exactly one member.It is a separate legal entity from its promoter and the promoter has limited liability.

Features

Corporate Body

It is a type of company that can be initiated and operated by a sole promoter with limited liability protection in the country. A One Person Company, considered as a legal entity, allows easy transferability of ownership and does not end until dissolved. Also in the event of any legal case, the company would be liable and not the individual.

Minimum Capital not require

In order to start a One Person Company, a minimum capital amount is not required. The company can be started as per the capacity of the sole promoter.

Seamless Procedure for Registration

• The procedure to register a One Person Company is very simple which consists of the following steps:
• The Sole Promoter and a nominee are required for registering a One Person Company.
• Documents of the sole promoter and the nominee which consists of PAN Card, Bank Statement and Aadhaar Card are required.
• The Electricity Bill and the No Objection Certificate of the location where the company is incorporated are required while incorporating the company.

Procedure

Requisite Documents for a One Person Company Registration

Following are the Documents Required for Registering a One Person Company:

• (a) Identity Proof of the Director and Nominee Director
  The Permanent Account Number of the Sole Promoter and the Nominee Director are required. In addition, both the Sole Person and the Nominee must be Indian Nationals.
• (b) Residential Address of the Sole Person/Director and Nominee Director
  Documents like Passport, Driver’s License, Bank Statement, Electricity Bill that are not older than 2 months are required in order to register a One Person Company.
• (c) Proof of the Registered Office in India
  Documents like Property Tax Receipt, Electricity Bill copy, Rental Agreement or Sale Deed, No Objection Letter form Landlord in order for using the premises as registered office.
• (d) Signed Documents of Company Incorporation
  The Signed Digital Signature Application Documents (hard copy), soft copy of signed incorporation documents need to be uploaded.
• (4) Requisite Documents
  The One Person Company also has to prepare the following documents which are required to be submitted to the Registrar of Companies:
• (i) The Memorandum of Association (MOA) – It is a document which is prepared during the formation and registration process of a company that states the relationship with the shareholders. It signifies the objectives for which the company has been formed.
• (ii) The Articles of Association (AOA) – It is a documents which mentions the by-laws of the company operations.
• (iii) A nominee is appointed on behalf of the sole director or promoter for performing his duties in case the sole promoter is incapacitated or dies. The sole director’s consent for the nominee to take his place at such a circumstance is considered along with his PAN Card and Aadhaar Card.
• (iv) To start a One Person Company, the sole director has to submit the Registered office proof of the proposed company along with the proof of ownership and a No Objection Certificate from the owner or the location/office premise.
• (v) The sole promoter’s affidavit and consent of Form INC-9 and DIR- 2 respectively.
• (vi) The sole promoter also has to submit a declaration from a professional authority which certifies that the company has met all the compliances.