ONE PERSON COMPANY (OPC)

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One Person Company

One Person Company is a new type of company that was introduced as a refinement of the structure of a sole proprietorship firm in the Companies Act, 2013 to support entrepreneurs who can start their own business by creating an economic entity for one person and limits his liability for his participation in the company. Only an individual resident in India can be a member of the One Person Company. As the name suggests, this company is owned by one single person. Under section 3 of the Companies Act, 2013, rule 3 and 4 of Companies (Incorporation) Rules, 2014, define One Person Company’s applicability in the Indian market.

Benefits of One Person Company

Limited Liability
The personal property of a director is always safe in a private limited company, regardless of commercial debt.
Continuous Existence
The sole proprietorship expires with the death of the owner. One person companies have a separate legal status and therefore survive when transferred to a nominee director.
Limited Liability
The personal property of a director is always safe in a private limited company, regardless of commercial debt.
Continuous Existence:
The sole proprietorship expires with the death of the owner. One person companies have a separate legal status and therefore survive when transferred to a nominee director.
Greater Credibility:
One person companies are gaining more and more trust from suppliers and lenders as their books are audited every year.

Procedure of One Person Company

1
Documentation

Check eligibility and documentation

2
DSC and DIN

Apply DSC and DIN of all directors

3
Name Reservation

Name reservation request application

4
File SPICe+ Form

File SPICe+ Form for company incorporation

5
Apply PAN and TAN

Apply PAN and TAN for your new company

6
RoC issues

RoC issues a certificate of incorporation with PAN and TAN

7
Bank Account

Open a Bank Account and start the operation.

Documents Required for GST Registration

List of Documents that are required to proceed with this service package is:

  • PAN Card or Passport
  • Passport for NRIs and foreigners
  • Scanned copy of your Driver's License or Voting Card
  • Specimen Signature or Impression
  • Passport size photo
  • Scanned copy of Current Bank Statement / Phone or Mobile Invoice / Gas or Electricity Bill
  • Scanned copy of the Rental Agreement written in the English Language
  • Scanned copy of the No-objection Certificate from the property owner of the affected property
  • A scanned Property or Sale Deed in English (if the property is owned).

Eligibility Criteria of One Person Company

Indian Citizen
A natural person who is an Indian citizen and resident in India for at least 182 days during the immediately preceding financial year.
Member or Nominee
He/she cannot be a member or nominee of more than one OPC.
Minors not allowed
Minors are not allowed as members or nominees.

FAQs

Q. What is the role of a Nominee in an OPC?
A nominee is an individual who becomes a member of the company in case of the promoter's death or incapacitation.
Q. How much capital is required to start an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of Rs 1 lakh to begin with, but none of this actually needs to be paid up. This means that you don’t need to invest any money into the business.
Q. Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.
Q. Is a Private Limited Company better than OPC?
OPC is a Company that has a separate existence and is owned by one single member. One person happens to be a mixture of proprietorship and company forms of business.
Q. Is GST mandatory for OPC?
GST registration for a One Person Company is necessary if the supply of goods or services is in another state irrespective of annual turnover.

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