What is One Person Company (OPC)?
A One Person Company (OPC) is a type of company that can be formed with only one owner/member under the Companies Act, 2013. It combines the benefits of a sole proprietorship and a private limited company.
An OPC is a separate legal entity from its owner and provides limited liability protection.
Benefits of Forming One Person Company
- Limited Liability Protection
The owner’s personal assets are protected. Liability is limited to the amount invested in the company.
- Separate Legal Entity
The company has its own legal identity separate from the owner.
- Single Owner Control
One person has complete control over management and decision-making.
- Better Business Credibility
An OPC appears more professional and trustworthy compared to an unregistered proprietorship.
- Perpetual Succession
The company continues even after death or incapacity of the owner through a nominated person.
- Easy Fund Management
Banking and financial transactions are more organized.
- Lesser Compliance Compared to Pvt Ltd
OPCs enjoy certain exemptions and reduced compliance requirements.
Eligibility for One Person Company Registration
To register an OPC in India:
- Only one person can be the member/shareholder
- Minimum one director required
- The member and nominee must be:
- Natural persons
- Indian citizens
- Registered office address in India is required
- A nominee must be appointed at the time of incorporation
Important Conditions
- One person cannot incorporate more than one OPC at the same time
- Certain businesses like NBFC activities cannot be carried out through OPC
Process of OPC Registration
Step 1: Obtain Digital Signature Certificate (DSC): Required for online filing on MCA portal.
Step 2: Apply for DIN: Director Identification Number for the director.
Step 3: Name Approval: Apply for reservation of company name through MCA.
Step 4: Prepare Incorporation Documents
Draft:
- MOA (Memorandum of Association)
- AOA (Articles of Association)
- Nominee consent
Step 5: File Incorporation Forms: Submit SPICe+ incorporation forms along with documents.
Step 6: Certificate of Incorporation: After approval, MCA issues:
- Certificate of Incorporation
- CIN
- PAN & TAN
Documents Required for OPC Registration
Documents of Owner/Director
- PAN Card
- Aadhaar Card
- Passport size photograph
- Email ID and mobile number
- Address proof
(Bank statement, electricity bill, passport, etc.)
Documents of Nominee
- PAN Card
- Aadhaar Card
- Consent form
Registered Office Documents
If Rented Property:
- Rent agreement
- Utility bill (electricity/water bill)
- NOC from owner
If Owned Property:
- Ownership proof
- Utility bill