One Person Company

The One Person Company is a new and unique concept introduced by Companies Act 2013.

One Person Company

The One Person Company is a new and unique concept introduced by Companies Act 2013.

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OVERVIEW

One person company is a new and unique concept introduced by Companies Act 2013 to encourage small traders and business persons. OPC provides the benefits of a company form of business, even to a single person. Statistics show OPC is set to become one of the most preferred forms of business organizations by small traders. OPC is a boon for the entrepreneur and low-risk service providers. As per Companies Act 2013. Section 2(62) OPC is defined as a company which has a person as a member. It’s a special type of company which allows the only one owner to start a business under Private limited structure without any other co-founder.   

To form an OPC, a person who is a citizen of India and he/she has stayed in India for 182 days during the immediately previous financial year. However, one person can’t form more than one OPC or become the nominee of more than one for such a company. Foreign nationals cannot register an OPC in India.

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DOCUMENTS REQUIRED FOR ONE PERSON COMPANY

Pan Card

PAN of director

Identity Proof 

Identity proof of all the partners such as Passport or Driving license or Voter’s ID card at the time of incorporation

Address Proof 

Address proof such as the latest mobile or telephone bill or bank statement

 

For registered office

  1. NOC from the owner of the premises.
  2. Electricity bill of premises.

 

 

WHY ONE PERSON COMPANY (OPC)?

1.  Requires only one person to incorporate a company

2.  Easy to start as a single entrepreneur

3.  Corporate entity

4.  Limited Liability

5.  OPCs are a separate legal entity similar to that of any registered corporation in spite of being run by individuals

6.  It must have only one member and only one director

   

 

STANDARD PROCEDURE

1.   Apply for name reservation

2.   Apply for Digital Signature

3.   The name of the company must end with OPC Limited

4.   Preparation of incorporation documents

5.   Filing of incorporation application

6.   Grant of registration

    

FREQUENTLY ASKED QUESTIONS

At least one nominee is required to start an OPC who can act as a shareholder as well as a director.
Any individual/organization can become a member of One person company, including foreigners/NRI’s.
It is an online process, and you don’t have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail.
Only an Indian resident can register an OPC, and that, too, only one at a time, as per the rules of the Ministry of Corporate Affairs.
One Person Company is most suitable if you are a single promoter/ single entrepreneur. It is a form of legal entity, and this gives your company benefits such as perpetual existence and easy ownership transferability. A single person has the facility to have 100% shareholding in case of One Person Company.
OPC is best for single entrepreneurs; however, there are some limitations such as NRI or foreigners cannot be part of OPC. Unlike in Private limited company which allows Foreigner to become director of the private limited company. OPC must be mandatorily converted into the private limited company if its annual turnover exceeds Rs. 2 crores or the paid-up capital of one Person Company exceeds 50Lakhs. Also in certain licenses, only Pvt limited are allowed to take.
In annn OPC, the director and shareholder is one and the same person. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.
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