Proprietorship Firm Registration

Proprietorship Firm Registration (One-Man-Show)

A Single owner business, commonly known as Sole Proprietorship, is a primary form of business entity that is owned, managed and controlled by one owner, i.e., the Proprietor.

Quite easy to start and manage, with minimal government regulation, proprietorship entity is one of the most common forms of business in India. It suits well for small businesses operating independently or in Business to Customer (B to C) model.

As there is no mandatory requirement for a small proprietorship business to get statutory registration, it’s existence is established through tax registrations and other business registrations.

Key Highlights

One-Man-show leading to fast decision making
Easy to Start and Close the business
Choice of Business Name
Lower Taxes and formalities
Minimum Regulatory Compliance.

Basic Registrations Required:

GST Registration
Udyam Registration

Documents & Details Required

PAN Card of Proprietor
Aadhaar Card of the Proprietor
Photograph of the proprietor
Email and Mobile number
Registered office proof
Bank Account Statements

FAQs on One Person Company (OPC)

What is the benefit of having an OPC?

OPC gives a corporate identity to a proprietary concern, with a limited liability. It is suitable for small to medium level business. Also the compliance requirements are lesser than a private limited company.

Who can be a member or nominee of an OPC?

Any individual being Indian citizen and resident in India can become member/nominee of an OPC.

What is the minimum capital required to start an OPC

OPC can be started with any amount of capital and the law has not stipulated any minimum amount to start with.

Can a single person become member in more than one OPC?

No, one individual can become member in only one OPC.

What is the time required for completing the registration process of an OPC?

Ideally time required is 15-20 days, but this is subject to the correct and prompt receipt of documents from clients side and the time taken at ROC office.

How many directors can an OPC appoint?

Though an OPC has a single owner, he/she can appoint as many as 15 directors for administrative functions, without any share being held by them.

How many persons are required to form an OPC?

OPC requires only one member cum director. It also requires one nominee of the director.

Is there any restriction as regards size or turnover of an OPC?

In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover exceeds during the relevant period exceeds two crore rupees, then the OPC has to mandatorily convert into private or public company.