One person company(OPC)
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OPC stands for One Person Company, a unique form of business introduced in India to enable entrepreneurs to start and operate a company with a single member. The concept of OPC was introduced through the Companies Act, 2013, offering a business structure that allows a single entrepreneur to create a corporate entity.
Key Features of OPC:
Single Member: An OPC can have only one shareholder/promoter, distinguishing it from other types of companies that usually require at least two shareholders.
Limited Liability: Similar to other company structures, the liability of the owner in an OPC is limited to the extent of their contribution to the company. Personal assets are protected from business liabilities.
Separate Legal Entity: Like any other company, an OPC is considered a separate legal entity from its owner. It can enter into contracts, own assets, and sue or be sued in its name.
Nominee Director: A single-member of an OPC needs to nominate a person as a nominee director who will take over the company in case the original owner becomes incapacitated or deceased. This nominee director has limited powers unless needed to take over the company’s management.
No Minimum Capital Requirement: There’s no minimum paid-up capital requirement for an OPC at the time of incorporation.
Conversion: An OPC can be converted into a private limited company upon reaching certain thresholds in terms of turnover or paid-up capital.
Compliance Requirements: OPCs have lesser compliance requirements compared to other forms of companies, reducing the administrative burden on the single entrepreneur.
OPCs provide a viable option for solo entrepreneurs who wish to enjoy the benefits of a corporate entity, such as limited liability, while retaining complete control over the company. However, there are limitations on the number of OPCs a person can establish, and certain businesses (e.g., non-banking financial activities) cannot be formed as OPCs. It’s advisable to seek professional guidance to understand the suitability of OPC structure based on specific business needs and legal requirements.
Documents Required for OPC Company
To register an OPC (One Person Company) in India, the following documents and information are generally required:
Director Documents:
- Identity Proof: PAN card (mandatory) and any of the following: Aadhaar card, passport, voter ID, or driver’s license.
- Address Proof: Any of the following: passport, voter ID, utility bills (electricity, water, gas), or bank statement.
- Passport-sized photograph.
Registered Office Proof:
- Documents validating the registered office address, such as rental agreement, lease deed, electricity bill, property tax receipt, or NOC (No Objection Certificate) from the property owner.
Nominee Director’s Documents:
- Similar identity and address proof as required for directors.
- Passport-sized photograph.
No Objection Certificate (NOC):
- If the registered office is rented, a NOC from the property owner allowing the use of the premises for the company’s registered office.
Memorandum of Association (MoA) and Articles of Association (AoA):
- Drafted and signed by the director(s) and subscriber(s).
Consent and Affidavit:
- Consent from the director and the nominee director agreeing to their appointment in the company.
- An affidavit declaring compliance with the requirements and provisions of the Companies Act, 2013.
Board Resolution (if applicable):
- A resolution passed by the sole member of the OPC consenting to the appointment of the nominee director.
Bank Account Details:
- Details of the company’s bank account.
The documentation process might also vary based on the specific business requirements and the state in which the company is being registered. Seeking professional guidance or legal advice can be beneficial to ensure compliance with all necessary regulations and to gather the correct documentation for registering an OPC.