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We believe that the simplest solution is the best one.
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About
Affluence
Basic Concept
The concept of a One Person Company is newly added in the Companies Act, 2013. Before the enactment of the Companies Act, 2013 there was no concept of One Person Company. It can be summarized that OPC is a company that is owned by a single person.
Highlights of the Article
Basic Concept
Objectives
Preliminary conditions & Eligibility
Mandatory Annual Compliances
Benefits cum Exemptions for OPC
Hindrances for the OPC
Comparative Analysis among OPC, Sole Proprietorship LLP & Private Limited Company
Conclusion
Objectives
Following were the objectives behind introducing the concept of One Person Company:
Less Compliance burden
Promote the individual having resources to form a company
Reducing the complications and challenges in incorporating the legal entity
Cost Saving in all aspects
The single entrepreneurs are in the need of a speedy mechanism to get incorporated into the company form of a business
The possible solution where the entrepreneur is not required to fritter away their Time energy and sources.
Preliminary conditions cum Eligibility which are to be fulfilled
According to it only a natural person who is an Indian Citizen whether resident in India or otherwise.
Is eligible to incorporate One Person Company.
Shall be the nominee for the sole member of OPC
“Resident in India” means a person who has stayed in India for a period of not less than 4 [one hundred and twenty days] during the immediately preceding financial year.
A natural person shall not be a member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.
Minor shall not become a member or nominee of the One-person company or can hold shares in the beneficial interest in such OPC.
One-person companies are restricted to do business in Non-Banking Financial Investment activities including investment in securities of any other body corporate
OPC can be incorporated as a Private Limited Company only.
OPC cannot be incorporated or converted into section 8 company.
OPC cannot be converted to any form of Company before the expiration of two years of incorporation
Mandatory Annual Compliances for the OPC
Disclosures from the Directors: In each financial year in form DIR-8 and MBP-1
DIR-3 KYC: Before 30th September every year.
MSME-1: in respect of pending payments to MSME vendors as at the end of half-year. April to Sept- 30th October
October to March- 30th April
DPT-3: Every year on or before 30th June in respect of return of deposit and particulars of transaction not considered as deposits as on 31st March of every year.
ADT-1: Within 15 days of the Annual General Meeting and thereafter for every re-appointment of auditors for a further term of five years.
AOC-4: Along with the Board’s Report and Auditors Report within 180 days from the closure of the financial year.
MGT-7 A: OPC will file its ROC Annual Return within 60 days of entry of ordinary resolution in Minute Book.
Benefits cum Exemptions for OPC
Exemptions for the annual general meeting: As per section 96(1), OPC is not required to hold an annual general meeting. As we are all aware there are various compliances for the Annual general meeting for the companies here, we are having exemption from this compliance.
Exemptions for Rotation of company auditors: It is not necessary for OPC to follow the condition laid in Section 139(2) of the Company Act 2013, which mandates the rotation of auditors every 5 years (individual auditors) and every 10 years (firm of auditors).
Exemptions for Signing of Financial statements: In the case of One Person Company, only one Director can sign financial statements for submission to the auditor for his report thereon.
Board Meetings: OPC doesn’t have a wide range of business so it’s not required for OPC to hold 4 board meetings in a year, OPC may hold only 2 board meetings in a calendar year. Which is actually very relaxing for the owner.
Shareholder and director can be the same: Shareholder being a member of the company can also be the director of the company.
Limited Liability & perpetual succession Concept: Members aren’t personally liable for the actions of the company and members may come and go however the company will still be a going concern. This would encourage entrepreneurial persons to take the challenge of doing business without bothering about liabilities getting to the personal assets.
Easy to get a loan from banks and manage finance: To manage finances is easy as compared to other forms of business. Because usually it is preferred by the bank to finance a company rather than a partnership and other forms of business.
Hindrances for the OPC
Tax Slab: OPC would have to pay 30% tax on all profits. There are no exemptions.
Only suitable for small businesses: An OPC will only support small businesses, and after a prescribed turnover criterion, it is required to be converted into companies.
Complications in management at the time of any emergencies: There will be no apparent line between ownership and management because the only member can also be the company’s director. All decisions must be made and approved by the lone member. The barrier between ownership and control is becoming increasingly blurred, it might be leading to unethical commercial activities.
Restriction on certain business activities: OPC cannot carry out the Non-banking financial investment activities.
Maximum Paid up share capital and turnover Criteria: OPC can have a maximum share capital limit, in excess of that limit or turnover there is a mandatory requirement to convert that OPC into a private company.
Comparative Analysis among OPC, Sole Proprietorship LLP & Private Limited Company.
Conclusion
The success of OPC is purely reliant on its implementation but the concept is a necessity in the changing business arena of the country where entrepreneurs are require taking risk & at the same time needs protection to cover up that risk.
The single entrepreneurs are in the need of a speedy mechanism to get incorporated into the company form of a business & OPC seems to be the possible solution where the entrepreneurs are not required to fritter away their time, energy & resources on procedural matters.
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
There are several compliances specified under FEMA for Indian Companies having FDI and ODI (Indian entities having investments in overseas Joint Venture
SEBI plays an important role in regulating all the players operating in the Indian capital markets. It attempts to protect the interest of investors and aims at
We provide advisory and support services to the corporates/other entities, devising and structuring solutions for stress mitigation in their enterprises/units.
We at Affluence, adopt a comprehensive approach for implementation and compliances related to the GST and with an object to offer seamless services to our clients listed below.
In the fast-changing environment, procuring and retaining skilled staff is a challenge. Specially in the case of SMEs, in the absence of accounting manual
Today’s businesses across the globe increasingly seek better decision-making and stronger internal controls in order to attain greater shareholder value.
‘Startup India’ is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and
Director stand in a fiduciary position with the Company and Director will be held liable if Director do not act diligently in discharging his/her duties.
The team at Affluence Advisory Services played an important role in helping us draft various applications, including that for applying to the RBI for registration as an NBFC. Ably led by you, the team has a thorough understanding of regulations and procedures. Their approach is very professional, proactive and they respond promptly to all queries. Our entire experience during the above process was seamless and solution oriented. Due to this pleasant experience, we continued to seek the guidance for all subsequent engagements wrt secretarial and regulatory compliances as well.We thank you and your team for the continued support and good wishes. We are happy to recommend you to organisations/ individuals seeking guidance on regulatory/ secretarial/ corporate affairs matters.
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Utpal Isser
Co-founder, MD and CEO of Sarvagram Fincare
We recently partnerd with Affluence Advisory for ESOP implementation and ongoing administration, and the experience has been very good. The team ensured a smooth and compliant setup, and their support in managing grants,vesting, and documentation has been promt and professional. Their expertise gave us confidence throughout the process.
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Dinshaw S. Irani
CEO, Helios Capital
As a listed entity, implementing and managing an ESOP requires not just technical expertise but also a deep understanding of regulatory compliance, stakeholder communication, and market expectations. We partnered with Affluence Advisory for end-to-end ESOP advisory, and their contribution has been truly exceptional.
Their team brought in-depth knowledge of SEBI regulations, Companies Act provisions, and best practices in structuring ESOPs for listed companies. From designing the scheme and obtaining necessary approvals to drafting documentation and aligning with investor expectations, their guidance was comprehensive, timely, and highly professional.
We particularly appreciate their ability to collaborate seamlessly with our internal teams and board members. Thanks to their support, we were able to implement an ESOP framework that is strategic, compliant, and aligned with our long-term value creation goals.
We would highly recommend Affluence Advisory to any listed company exploring equity-based compensation strategies.
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CS Sudha Didwania
Compliance officer, Autoriders International Ltd.
As an established listed entity with large number of employees, implementing and managing an ESOP requires not just technical expertise but also an understanding of structure, framework, regulatory compliance, stakeholder communication, and market expectations. We partnered with Affluence Advisory for end-to-end ESOP advisory, and their contribution has been valuable.
We appreciate their knowledge of Structuring the Scheme, SEBI regulations, Companies Act provisions, and Market Best practices in structuring ESOPs.
We particularly appreciate their ability to collaborate seamlessly with our internal teams and would recommend Affluence Advisory for exploring equity-based compensation strategies
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Jaidip Chatterjee
(CHRO) Group Human Resources,RELIANCE
We met Affluence when they were advising Mumbai Oncocare (our portfolio company) on their fund raise. During the course of this investment journey, we were exposed to the 360 degree approach that Affluence and CA Nimish Khakhar brought to the table which was not merely limited to due diligence and modelling but went way beyond in terms of regulatory compliances, MIS development, Finance and Account support, secretarial support and so on. We were extremely relieved and pleased with the post investment support that they continue to give to Mumbai Oncocare. We actively encourage our portfolio companies to evaluate Affluence’s service offerings and have already co-opted them with some of our other portfolio companies. Affluence does a great job of identifying gaps and help bridge the same with its committed and professional approach to the tasks that they undertake. I look forward to building on this partnership with Affluence.
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Mr. Vamesh Chovatia
Partner, TATA CAPITAL Healthcare Fund
We are consulting Affluence Advisory for over 15 years for tax and compliance matters. We appreciate their competence and commitment to the engagements offered to them. Affluence’s simplified and solution-based approach is very unique and commendable. My personal best wishes to Team Affluence Advisory.
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Mr. K Ullas Kamath,
Joint Managing Director, Jyothy Labs Ltd, Chairman – FICCI Karnataka State Council
We have worked with Affluence and Nimish,for well over 9 years from.From creating our companies, to handling them when they are at a multi billion dollar stage, we have found them taking care of each aspect with as much attention & perfection.
I would go on to say, that they are one of the pillars and architects of our success and wish them the very best in everything.
“
Mr. Siddharth Shah
Co-founder, MD and CEO of Pharmeasy
We are incredibly grateful to Affluence and their team for their exceptional support in streamlining and helping us navigate the complexities of RBI and secretarial compliances. Their in-depth knowledge and clear guidance have not only made the process more understandable but also allowed us to stay fully compliant.
What truly sets Affluence apart is their unwavering support, even during challenging times. Whether it’s responding promptly to urgent queries or providing proactive advice, they’ve always been there when we needed them most. Their professionalism, expertise, and dedication have been invaluable to us, and we look forward to continuing our successful partnership with them.
Thank you, Affluence, for being a trusted and reliable partner in our growth!
“
Pooja Jain
AVP – Finance, Vivifi India Finance Private Limited
We are Professional
Our Team
People are our greatest asset and we believe in our people. Our multi disciplinary team would always go that extra mile to ensure that all the client deliverables are prepared within agreed time frame to technical standards and presentational quality. Our success is greatly dependent on quality and performance of our people.
He is a fellow member of the Institute of Chartered Accountants of India. He has over 23 years of experience in Transaction (M &A) and Transaction Support Services (Vendor and Buyer side Due Diligence). His Portfolio includes both Brick and Mortar and Modern Trade Businesses. He has played key roles in a few large M & A transactions and is also been actively involved in advising Unicorns since the commencement of operations.
CS S. N. Baheti
S. N. Baheti
He is an Associate Member of the Institute of Company Secretaries of India. He has 42 years of work experience in banking and financial services (including 34 years in IDBI group), with a diversified work profile having all-round exposure to activities of Development Financial Institutions, Infrastructure Debt Fund (NBFC), Mutual Funds, Commercial Banking, NBFC-HFC, and Company Boards including MD and CEO positions and Directorships in large corporates.
Presently handling assignments as Insolvency Professional. He has played a key role as RBI representative in the resolution of one of the largest NBFC transaction.
CA Dwiresh Oza
Dwiresh Oza
He is having 27 years of extensive professional experience in Corporate Finance, Project Finance, Private Equity, Public/Rights Issues, Due Diligence, Corporate Debt Restructuring (CDR), ERP implementation, 50:50 International Joint Venture, Closely held as well as Listed Manufacturing Accounting, Statutory/Internal/Tax Audit and knowledge of IFRS.
Have worked for more than 10 years in Infrastructure, viz. Ports and roads.
Have demonstrated the ability to work across teams and with the senior management and Board of Directors in achieving various strategic initiatives on a time-bound and structured approach.
Subhamoy Chatterjee
Subhamoy Chatterjee
He has experience of over 21+ years in the Banking and Financial Services Industry. He has essayed leadership roles across key functions of market advisory, treasury, relationship management, and product strategy. He expertise extends to inorganic growth through acquisitions, strategy development, and technology integration. He's successfully managed Profit and Loss centers, implemented cost-saving measures, and contributed to organizations like ICICI Bank, Standard Chartered, and Thomson Reuters.
Tushar Trivedi
Tushar Trivedi
He is an Operation and Digital Transformation Consultant with 31+ years of experience in working with MNCs and large corporate clients in India and overseas like Oracle India, PwC, Citi Bank, Kotak Mahindra Bank, and NBAD.
He has also been the recipient of prestigious awards from several institutions and publications.
CA Payal Gada
Payal Gada
She is a fellow member of the Institute of Chartered Accountants of India and has 18 years of post-qualification experience. She is a registered valuer with IBBI as Valuation Professional and for the last 8 years, she is working on financial modeling and fair value analysis across different industries for diverse purposes, including regulatory/compliance, investment, and financial reporting. Fair valuation across asset classes including but not limited to business valuation, intangible, ESOPs, convertible instruments, and other complex instruments.
CA Rashmi Dubey
Rashmi Dubey
She is an associate member of the Institute of Chartered Accountants of India. Over 6 years of post-qualification experience she has specialized in Risk Advisory. Her Risk Advisory experience includes internal audit, ICFR, designing of SOPs, corporate governance, enterprise risk management, internal audits.
CA Anand Shroff
Anand Shroff
He have experience of over 22+ years in Strategic Advisory and Corporate Finance.
As a finance head, Anand has demonstrated the ability to work across functional teams and with the senior management and Board of Directors and achieved the organizational goals within a scheduled time through his structured approach. During his stint in the industry, Anand shouldered the responsibility of business expansion through M&A and raised capital through debts and equity.
Anand has closely worked with the Promoters and took up the responsibility of execution of the entire project by coordinating with the multiple advisory agencies involved in the project. He carried this experience and assisted the Promoters with family offices set up and further advised the Promoters on domestic and overseas investments.
CA Hujefa Karjatwala
Hujefa Karjatwala
He is an associate member of the Institute of Chartered Accountants of India having experience of more than 12 years in profession. He specializes in Indirect Taxation & Internal audits. His area of interest includes Goods and Service Tax practice for SME clients and Internal audits.
CS Sachin Kotian
Sachin Kotian
He is a fellow member of the Institute of Company Secretaries of India. With Over 18 years of experience, he has expanded his advisory and compliance services for Private Equity, Venture Capital, Portfolio Companies Compliances, NBFC Registration & Compliance, Due Diligence, Mergers & Amalgamations, FDI & ODI Compliances, and ESOPs. He is also handle Client Relationships and provides guidance on FEMA / NBFC / Compounding / and other Corporate Laws related Matters.
CS Vinesh Mestry
Vinesh Mestry
He is an associated member of the Institute of Company Secretaries of India. His horizon for more than 7 years in the field of Corporate Law and adjudication-related matters before Regional Directors, NCLT. His LLB qualification gives an additional advantage in matters relating to Compounding, Mergers & Amalgamations before Regional Directors, NCLT & Other Regulatory Authorities.
CS Bhavesh Chheda
Bhavesh Chheda
He is an associate member of the Institute of Company Secretaries of India. He has experience of more than 10 years and specializes in the areas of Listing Compliance, SME & Mainboard IPO, Preferential Issues, Capital Structuring in Listed Companies, SEBI Intermediary Registration & Compliances, ESOP, Mergers & Amalgamations, Implementation of Resolution Plans after NCLT Approval, and other related matters. He also provides guidance and support to the compliance team in respect of Companies Act / RBI / FEMA / Corporate law.
CS Tanvi Shah
Tanvi Shah
She is an associate member of the Institute of Company Secretaries of India. Over 5 years of post-qualification experience, she focuses on Compliances of Companies Act/RBI/ and NBFC.
CS Raina Shah
Raina Shah
CS Raina R.Shah Corporate Governance & Compliance Specialist, with over Nine plus years of expertise in Company Secretary. She brings a strong foundation in corporate law and compliance, backed by a Bachelor of Legislative Law degree and membership with the Institute of Company Secretaries of India. Her professional focus spans Private Placement, Corporate Demergers, Foreign Acquisitions, Incorporation of International Entities, Debt Transactions, CSR, and Strategic Fundraising. Known for driving seamless corporate operations, she ensures rigorous due diligence and robust risk management, empowering organizations to grow responsibly and sustainably.
Chaital Vas Advocate & Solicitor
Chaital Vas Advocate & Solicitor
She is a member of the Bombay Incorporated Law Society (BILS). She is a seasoned corporate lawyer with over two decades of experience. She excels in corporate advisory matters, SEBI regulations, and has a rich expertise spanning industries like Banking, Real Estate, IT, and more. She is renowned for her skill in drafting legal documents and guiding clients through complex regulatory landscapes
Bhakti J. Thakker Advocate & Solicitor
Bhakti J. Thakker Advocate & Solicitor
She is a member of the Bombay Incorporated Law Society (BILS). She has handled Real Estate Transactions such as the sale of land/ flats, leave and license, leases and Wills, Testamentary Matters, and general corporate matters such as giving legal opinions including drafting the concerned relevant deeds and documents.
CS Atharva Kale
Atharva Kale
He is an Associate Member of the Institute of Company Secretaries of India (ICSI), with a legal background and a focused interest in corporate and securities law. With a fresh perspective and strong academic grounding, he is actively involved in matters relating to company law, NBFC regulations, and SEBI compliance.
CS Grishma Malvankar
Grishma Malvankar
She is a qualified Company Secretary with over one year of experience in corporate and compliance laws. She has worked on various matters including secretarial compliance, drafting, and corporate governance, with a strong focus on accuracy and attention to detail.
She has been actively involved in key projects such as Employee Stock Option Plans (ESOPs) and fast-track mergers, demonstrating her ability to handle complex legal and regulatory processes.
CA Ambarish Sodha
Ambarish Sodha
He is a fellow member of the Institute of Chartered Accountants of India. Over 43 years in direct tax litigation and tax advisory services, he appears before first and second appellate authorities. Over and above Profession, he is actively engaged in several social causes including promoting girls’ education in rural areas.
CA Payal Khakhar
Payal Khakhar
She is a fellow member of the Institute of Chartered Accountants of India. She has experience with over two decades. She heads indirect tax practice that covers regular GST compliances, GST reviews, and advisory services across different sectors.
CA Tejas Sodha
Tejas Sodha
He is a fellow member of the Institute of Chartered Accountants of India. He handles Direct tax litigation and compliance for over 12 years and regularly appears before first and second appellate authorities. He advises NRI on direct tax and withholding tax matters. His involvement in complex tax structuring has been appreciated by the Clients.
CA Dipesh Sangoi
Dipesh Sangoi
He is a fellow member of the Institute of Chartered Accountants of India. He heads Assurance practice and handles listed as well as unlisted companies and MNCs over the last 15 years. He manages Statutory Audits, Bank Audits - Central Statutory and Branch Audits, and Certification work for obtaining Bank Finance and certificates required for Public Issues.
CA Payal Doshi
Payal Doshi
She is a member of the Institute of Chartered Accountants of India. Her 10 years of experience is channelized towards Statutory Audits of Listed as well as unlisted entities and Tax Audits and Certification work.
CA Viral Shah
Viral Shah
He is a member of the Institute of Chartered Accountants of India. He has experience of more than 7 years and he is involved in Statutory Audits of Listed as well as Unlisted entities and Tax Audits and Bank Audits.
CA Ritesh Jain
Ritesh Jain
He is a member of the Institute of Chartered Accountants of India. He is engaged in compliance and management support functions. His industry experience contributes significantly to his delivery.
CA Aakash Sarda
Aakash Sarda
He is a qualified Chartered Accountant having an experience of over 7 years in
Indirect Taxation. He has worked with Deloitte in the Indirect Taxation team for over 5
years. He has handholded clients with Service Tax, VAT/CST, GST compliances, advisory,
refunds, department audits, inquiries and investigations by intelligence wings of the
department and litigation matters. He also holds experience in conducting Anti-Profiteering
study. He has assisted in preparing a representation for Gems & Jewellery sector on GST
concessions sought by them. Further, he holds experience with SEZ related matters such
as setting up a unit in SEZ area, their monthly compliances and advising them on their
business transactions. His experience also covers the examination of agreements and
evaluates the GST impact of the transaction under consideration. He has provided various
opinions through Memo/Notes on issues specific to clients business and industry wide
issues. He has served clients like General Insurance, Internet Telecommunication,
Information Technology, Hospitality sectors etc. among others.
Adv Dhruti Shah
Dhruti Shah
She is an attorney practising in taxation matters. She had represented clients before High Court, Debt Recovery Tribunals, City Civil Court and various other forums.
She holds experience in handling GST advisory, compliances, returns, computation of tax & it's payment thereof and maintaining audit trials & reports for assistance with assessments.
She has served clients in various sectors viz-a-viz Banking, Information Technology, Education, Gaming & Entertainment.