A One Person Company is a company with a single member.It was introduced by the Companies Act, 2013. OPC extends the concept of limited liability to a company run by a single person. It is similar in respects to a private limited company with certain differences like fewer compliances and relaxation of certain restrictions. Thus, an OPC is subject to all the provisions of the Act like a private limited company unless expressly excluded
Advantages and Benefits
1. Limited Liability Protection to Directors personal resources
In a one person private limited company, just interest in business is lost, personal resources of the chiefs are protected.
2. Better picture and validity in Market
In India, OPC is a Private limited company, which is a prevalent and understood business structure.
3. Simple to raise assets and advances
OPC is one of the least demanding types of companies. Not many ROC documents are recorded with the Registrar of Companies (ROC). No compelling reason to direct Annual General Meeting (AGM) and other normal compliances.
4. Aides for Testing of Business Model and Enables Funding
The OPC business causes Startup Entrepreneurs to effortlessly test their plan of action, and after structure an attractive item, they can approach Angel financial specialists, Venture industrialists for subsidizing and effectively convert their OPC into multi investor Private Limited company.
5. Unlimited authority of the Company with a Single Owner
This prompts quick basic leadership and execution. However OPC can select upwards of 15 executives for managerial capacities, without giving any offer to them.
6. Simple to Sell OPC
OPC Company is anything but difficult to sell, less documentation and cost is engaged with selling a One Person company.
Minimum Requirements…
→ Least 1 Shareholder
→ Least 1 Nominee
→ Least Authorized Share Capital to be Rs. 1 Lac
→ Least 1 Directors
→ Just Indian occupants can be Shareholder and Nominee
→ Commotion (Director Identification Number) for all Directors
→ The executives and investors can be same person
→ Least 1 Director must be Indian Resident
→ DSC (Digital Signature Certificate) for 1 Promoters and 1 witness
What All You Get…
→ DIN for 1 Director
→ MOA + AOA
→ Customized Incorporation Master File
→ Bank Account Opening Document Support
→ Digital Signature Token for 2 Promoters and 1 witness
→ Incorporation Certificate
→ Company PAN Card
→ Domain Name + Web Hosting
→ Company Name Approval
→ New Incorporation Kit
→ Company TAN/TDS Number
→ + 10 Email Ids for 1 year
1. What is a One Person Company (OPC)?
A One Person Company (OPC) is a type of business entity in India where a single person can establish a company with limited liability. It provides a unique opportunity for solo entrepreneurs to operate as a corporate entity.
2. Who can form an OPC?
Any Indian citizen residing in India can form an OPC. However, a person cannot incorporate more than one OPC or become a nominee in more than one OPC.
3. What is the significance of the nominee in an OPC?
The nominee in an OPC is appointed by the sole member to take over the management of the company in case of the member’s death or incapacity. The nominee ensures the continuity of the business and protects the interests of stakeholders.
4. Can the nominee in an OPC withdraw his/her consent?
Yes, the nominee in an OPC can withdraw his/her consent by giving a written notice to the sole member of the company. Upon receipt of such notice, the sole member must appoint another person as the nominee within 15 days.
5. What is the minimum and maximum number of members in an OPC?
As the name suggests, an OPC can have only one member. It cannot have more than one member at any point in time.
6. What is the minimum capital requirement for OPC registration?
There is no minimum capital requirement for OPC registration in India. You can start an OPC with any amount of capital, as per your business needs. However, we suggest to keep minimal capital of Rs.20,000 to take care of the formation expenses.
7. Is there a maximum limit for the paid-up capital in an OPC?
No, there is no maximum limit for the paid-up capital in an OPC. You can infuse as much capital as required for your business operations and growth.
8. Can a minor be a member or nominee in an OPC?
No, a minor cannot become a member or nominee in an OPC. Only individuals who have attained the age of majority can form or be associated with an OPC.
9. Can an OPC have a foreign national as a nominee?
No, a nominee in an OPC must be an Indian citizen and resident in India. Foreign nationals or non-resident Indians (NRIs) are not eligible to be nominees in OPCs.
10. What are the key benefits of forming an OPC?
The key benefits of forming an OPC include limited liability protection, separate legal entity status, ease of formation and compliance, opportunities for disciplined growth, and enhanced credibility in the market.
11. What is the process of OPC registration in India?
The process of OPC registration involves obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), filing of documents with the Registrar of Companies (ROC), and obtaining the Certificate of Incorporation.
12. Can a foreign national form an OPC in India?
No, only Indian citizens residing in India can form an OPC. Foreign nationals or non-resident Indians (NRIs) are not eligible to incorporate an OPC in India nor become a nominee of an OPC.
13. Can an OPC be converted into a private or public limited company?
Yes, an OPC can be converted into a private or public limited company by following the prescribed procedures and fulfilling the eligibility criteria as specified under the Companies Act, 2013.
14. Is it mandatory for an OPC to hold annual general meetings (AGMs)?
No, OPCs are not required to hold AGMs. They have relaxed compliance requirements compared to other types of companies, making them suitable for small businesses and solo entrepreneurs.
15. What are the documents required for OPC registration?
The documents required for OPC registration include identity proof, address proof, PAN card, passport-sized photographs, and a No Objection Certificate (NOC) from the property owner (if the registered office is a rented premises).