ONE PERSON COMPANY
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One Person Company @ ₹
- Salary Income
- Rent Income From One Property
- Interest Income etc.
This pricing plan includes free consultation
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One Person Company @ ₹
- Salary Income
- Rent Income From Properties
- Capital Gains or Losses
This pricing plan includes free consultation
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One Person Company @ ₹
- All Income Covered in ITR-2
- Income From Business or Profession
- Interest Income etc.
- Income or Loss From Intraday Share Trading
- Income or Loss From Derivatives (F&O)
- Director/Patner in a Company/LLP
This pricing plan includes free consultation
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One Person Company @ ₹
- Salary Income
- Rent Income From Propeties
- Professional Receipts up to Rs. 50 Lacs
- Businesses Covered under Presumptive Taxation
This pricing plan includes free consultation
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Know More
One Person Company
An Overview
A One Person Company (OPC) is a type of business entity that allows a single entrepreneur to operate and run a corporate entity with limited liability. It was introduced in some jurisdictions to encourage solo entrepreneurs to start their own companies without the need for additional shareholders.
For an accounting firm, if it operates as an OPC, here are some key points:
Limited Liability: The primary advantage of an OPC is that the liability of the owner is limited to the extent of their investment in the company. This means personal assets of the owner are generally protected in case of any debts or legal issues incurred by the business.
Entity Status: Even though it’s a one-person entity, it is recognized as a separate legal entity from its owner. This distinction is important for accounting purposes as the firm’s finances and transactions are separate from the personal finances of the owner.
Accounting and Compliance: Just like any other business entity, an OPC is required to maintain proper accounting records and prepare financial statements in compliance with the applicable accounting standards and legal requirements. This involves keeping track of income, expenses, assets, liabilities, and preparing financial statements such as profit and loss statements, balance sheets, and cash flow statements.
Taxation: The OPC is taxed as a separate legal entity, and the owner will typically pay income tax on the profits drawn from the company. The firm needs to comply with tax regulations and file its tax returns accurately and on time.
Audit and Reporting: Depending on the jurisdiction and turnover of the company, there might be audit requirements. An OPC might need to undergo statutory audits, and the financial statements might need to be submitted to the regulatory authorities.
Ownership and Management: While it’s owned and managed by a single person, there might be restrictions on transferring ownership or converting it into another type of business entity.
Compliance with Laws and Regulations: As with any company, an OPC needs to comply with various laws and regulations related to accounting, taxation, labor, and more.
For an accounting firm operating as an OPC, the above points are essential to ensure smooth operations, maintain compliance, and manage financial matters effectively. Consulting with a professional accountant or legal advisor is recommended to ensure adherence to all legal and regulatory requirements specific to the jurisdiction in which the firm operates.
Information / Documents Required
General Documents / Informations Required from all assessees:
Director’s Identification Number (DIN) and Digital Signature Certificate (DSC): These are required for the proposed director of the OPC. DIN is obtained by filing Form DIR-3, and a DSC is required to sign electronic documents.
Name Approval: An application for the proposed name of the OPC needs to be filed with the Registrar of Companies (ROC). Typically, you need to provide a few name choices in order of preference.
Memorandum of Association (MOA) and Articles of Association (AOA): These are essential documents that define the company’s objectives, rules, and regulations for operation.
Registered Office Proof: Documents showing proof of the registered office of the OPC, such as rental agreement, lease agreement, or ownership documents of the property.
Identity and Address Proof: Identity and address proof of the director(s) and nominee (if applicable) such as PAN card, Aadhar card, passport, driver’s license, etc.
Passport-sized Photographs: Passport-sized photographs of the director(s) and nominee (if applicable).
Consent: Consent from the director(s) and nominee (if applicable) to act as such in Form INC-3.
Affidavit and Declaration: The director(s) and nominee (if applicable) may need to provide an affidavit and declaration confirming compliance with all requirements and provisions.
Board Resolution: In the case of an existing company being converted into an OPC, a board resolution authorizing the conversion is required.
Financial Statements: If the OPC is a conversion from another type of business entity, financial statements of the previous entity might be required.
Other Required Forms: Various forms prescribed by the Companies Act or local authorities need to be filled out and submitted for incorporation
Benefits
Yes, an accounting firm can be registered as an OPC if it fulfills the criteria of having only one director and adheres to other requirements laid down by the respective jurisdiction’s Companies Act or relevant regulatory authorities
The primary advantage is limited liability, meaning the owner’s personal assets are protected in case of debts or legal issues incurred by the accounting firm. Additionally, it’s a separate legal entity, providing credibility and ease of doing business.
Yes, by definition, an OPC can have only one director and shareholder. Therefore, an accounting firm registered as an OPC can have only one owner.
The compliance requirements include maintaining proper accounting records, filing annual financial statements, conducting audits as per regulations, adhering to tax obligations, and complying with other statutory requirements as mandated by the Companies Act or local regulatory authorities.
Yes, depending on the growth and expansion plans, an OPC accounting firm can be converted into a private limited company or other suitable business structures as allowed by the local laws. This often involves compliance with certain regulations and procedures for conversion.
Tax implications for an OPC accounting firm vary based on the jurisdiction and tax laws. Generally, an OPC is taxed as a separate legal entity, and the owner may be subject to corporate tax rates. It’s advisable to consult with tax professionals to understand the specific tax benefits or liabilities in a particular jurisdiction.
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