LLC (One Person Company)

In India, you can start a business as a single individual by setting up a One Person Company (OPC). An OPC is a type of private company introduced under the Companies Act, 2013, which allows a single person to enjoy the benefits of a corporate structure while being the sole shareholder and director.

Here’s a brief overview of the key features and steps involved in setting up an OPC in India:

Key Features:

1. Single Shareholder: An OPC can have only one shareholder, who can be an individual resident in India.
2. Limited Liability: The liability of the shareholder is limited to the amount of unpaid share capital.
3. Separate Legal Entity: The OPC is a separate legal entity from its owner, which means it can own property, enter into contracts, and sue or be sued in its name.
4. No Minimum Capital Requirement: There is no minimum capital requirement to start an OPC.
5. Perpetual Succession: The OPC continues to exist even if the shareholder or director changes.
6. Ease of Compliance: OPCs have fewer compliance requirements compared to other types of companies, making them easier to manage.

Steps to Set Up an OPC:

1. Obtain a Digital Signature Certificate (DSC): Both the shareholder and the nominee (if any) need to obtain DSCs for online documentation.
2. Apply for Director Identification Number (DIN): Obtain DIN for the sole director of the OPC.
3. Choose a Company Name: Ensure the name complies with the naming guidelines under the Companies Act.
4. Draft Memorandum and Articles of Association: These documents outline the company's objectives and rules for its management.
5. File Incorporation Forms: Submit the necessary incorporation forms to the Ministry of Corporate Affairs (MCA) along with required documents.
6. Obtain Certificate of Incorporation: Once approved, the Registrar of Companies (ROC) will issue a Certificate of Incorporation, officially registering the OPC.

Key Documents Required:

• Proof of identity (Aadhaar card, passport, etc.)
• Proof of address of the shareholder and nominee
• PAN card of the shareholder and nominee
• Passport-sized photographs
• Utility bills (electricity bill, water bill, etc.) for the registered office address

It’s advisable to consult a company secretary or legal expert to ensure compliance with all legal requirements and to facilitate a smooth incorporation process.