One-Person Company Incorporation
A One-Person Company (OPC) is a business structure that enjoys the benefits of both forms of business, i.e., a sole proprietorship and a Private Limited Company. Thus, it eliminates the hassles of finding the right co-partner/s for starting a business as a registered entity.
This form of company is appropriate for small businesses and is used to conduct regular commercial businesses with the purpose of the owner making a profit, whilst providing limited liability protection.
Upon completing the order, you’ll be redirected to submit your information to process your registration.
OPC Incorporation Pro
Here are some of the features to expect from our One-Person Company Incorporation Packages.
Accredited Consultants: Our consultants are fully accredited by the Corporate Affairs Commission with several years of industry experience.
Private Company Limited by Shares: Your new company will usually be formed within 3 to 14 working days; when your new company gets approved by the corporate affairs commission (CAC), you can start trading immediately.
Corporate affairs commission (CAC) Filing Fee Included: CAC charges a filing fee for company incorporation. This is included in the package price, so what you see is what you pay – there are no hidden costs.
FREE Business Bank Account from one of our banking partners: We provide a choice of up to 8 business bank or payment institution accounts including; GTB, UBA, First Bank, Access Bank, Standard Chartered, etc.
Digital delivery of documents: As soon as your company is registered at CAC, we will deliver a full set of company documents to you by email, including; Certificate of Incorporation, Memorandum & Articles of Association, Share Certificate, and Minutes of First Board Meeting.
Digital storage of Documents: We store your documents safely online and can be requested for free whenever you need them. Unlike on CAC portal, where you’ll pay to get your documents after 7 days of registration.
Support for the drafting of MEMART: Memorandum of Association and Articles of Association are the two basic documents required in the process of Private Company Incorporation. Our drafting service can provide either a whole new set of company articles or clauses to be inserted into existing articles of association for particular purposes.
Tax Identification Number: Tax identification number (TIN) is included on the certificate of incorporation by default. In a few cases when CAC omits, we’ll apply to the Federal Inland Revenue Service (FIRS) for TIN after incorporation.
VAT Registration: Allow our highly trained staff to handle the formalities of your VAT registration. VAT registration also enables deals with suppliers and customers who are not willing to deal with businesses that are not VAT-registered.
PAYE Registration: PAYE registrations are compulsory for all businesses that employ people and pay them monthly salaries. Avoid potential complications by allowing our highly trained staff to take care of the registration and administration on your behalf.
Free .com or .com.ng Domain Name: We have partnered with one of Nigeria’s leading domain name providers to offer you a free .com or .co.ng domain name for 1 year, and help establish the online presence of your new business.
Frequently Asked Questions (FAQs)
You can find some of our most frequently asked questions on Sole Proprietorship Registration below;
One-Person Company (OPC) has the blended features of a sole proprietorship and a private company. OPC is also known as a one-man company.
Like a sole proprietorship allows you to own the firm completely, an OPC also has just one shareholder. But unlike a sole proprietorship, in an OPC the owner has limited liability and the burden of outstanding debts does not fall on the owner, as an OPC is treated as a separate entity.
OPC as a Private Limited Company has to obey specific rules and regulations that are mentioned in the Memorandum of Association (MoA) and Article of Association (AOA) which provides the guidelines for mutual rights and duties (We’ll provide both MOA & AOA for free).
The minimum share capital to incorporate a One-Person Company in Nigeria is; 100,000 Naira and the name shall end with the word, “Limited” or “Ltd”.
Here are some general features of a one-person company:
- Private company: A single person can form a company for any lawful purpose. It further describes OPCs as private companies.
- Single-member: OPCs can have only one member or shareholder, unlike other private companies.
- No perpetual succession: Since there is only one member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member. This does not happen in other companies as they follow the concept of perpetual succession.
- Minimum one director: OPCs need to have minimum one person (the member) as director. They can have a maximum of 15 directors.
- Special privileges: OPCs enjoy several privileges and exemptions under the Companies Act that other kinds of companies do not possess.
- Limited Liability: The creditors can sue only the Company and not the Director nor member for Company’s debt.
- Property: OPC can acquire, alienate and own the property in its name.
- Share Capital: The minimum capital share requirement for the incorporation of OPC is 100,000 naira (One hundred thousand naira only).
- Age Requirements: An applicant whose age is less than 18 years (Minor) cannot become a member or director of such a company.
Following are some of benefits of One Person Company.
- It has separate legal entity.
- The liability of shareholder/ director is limited
- Legal status and social recognition for your business.
- It gives suppliers and customers a sense of confidence in business.
- The director and shareholder can be same person
- On the death/disability company can be succeed by nominee.
- Exemption available from various provisions under Company law.
- They do not have to hold annual general meetings.
- Their financial statements need not include cash flow statements.
- A company secretary is not required to sign annual returns; directors can also do so.
- Provisions relating to independent directors do not apply to them.
- Several provisions relating to meetings and quorum do not apply to them.
- They can pay more remuneration to directors than compared to other companies.
- It is unchallenging to manage a One-Person Company as it Provides complete control of the company to a person.
- This type of company is regarded as a corporate entity that draws in various venture capitalists and angel investors that support and help the company to raise more funds and to expand its business.
- When you register a company name, it is protected and cannot be used by any other limited company or LTD, nor can another company register a name that is similar to your own company name.
- Small businesses with an annual turnover of less than N25 million are exempted from paying Company Income Tax in Nigeria.
To complete the Registration of Your One-Person Company in Nigeria, you’ll have to provide the following details upon Submission;
- Proposed Name of the Company (2 Names).
- The objectives and nature of business of the company.
- Address of the company.
- The share capital and shareholding formula among shareholders.
- Memorandum of Association and Article of Association (MEMART) – We’ll provide both MOA & AOA for free.
- Details of Shareholder and Director(s). Details such as; names, occupations, residential addresses, email addresses, mobile phone numbers, and means of identification (National Identification Card, Data Page of International Passport, Driver’s Licence, or Voter’s Card).
At least one nominee is required to start an OPC who can act as a shareholder as well as a director. The company can have only one shareholder but can have up to 15 directors, and the number can be increased with a resolution.
It usually takes 3-14 business days for the OPC Registration in Nigeria. Name Search: 6 – 24 hours from submission. Grant of Certificate of Registration: 2 – 10 Days from filing. Total time: Approximately 3 – 14 days.
Sole proprietorship and One-Person Company are two different forms of ownership. In a sole proprietorship, a business is managed and controlled by a person.
However, in the case of an OPC, an individual can commence the operation as per the rules and regulations of laws. Moreover, an OPC is registered under the Registrar of the Company.
A limited liability company (LTD) provides the business owner with liability protection and tax advantages, while sole proprietors bear personal liability for their business. Additionally, an LTD can be owned by investors, while a sole proprietorship is usually owned and managed by an individual.