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What is a one person company?

One person company (OPC) is a new form of business introduced by Companies Act, 2013. It is hybrid form of business where a sole proprietorship concern can get a corporate outlook.

An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder. Thus, it does away with the hassles of finding the right kind of co-partner/s for starting a business as registered entity. The best part is, legal and financial liability is limited to the Company and not the member.

What are the Documents required for Incorporation of OPC?

PAN card and Residence Proof of directors of the company
Copy of Rental Agreement / EB Card Copy of Registerd Office
Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
passport-size photograph
Specimen signature (blank document with signature [directors only])
Aadhar card [director only]

Advantages of Pvt Ltd Company


SINGLE SHAREHOLDER

A single shareholder who can also be the sole director can start an OPC.

SEPARATE LEGAL IDENTITY

OPC gets the status of a separate legal entity.

FEWER RULES AND COMPLIANCES

OPC has to comply with fewer rules and regulations when compared to other forms of companies.

LIMITED LIABILITY

The sole shareholder gets to enjoy the limited liability feature of a company.

What is the Process for Incorporation of One Person Company?
  • Digital signature for the director of the company to be obtained
  • 4-6 proposed names should be provided that should be unique and suggestive of company business.
  • Memorandum and Articles of Association should be drafted.
  • Sign and file various documents including MOA & AOA with the Registrar of Companies electronically
  • Once the application is duly filed and accepted by ROC, Certificate of incorporation is issued and the company is all set to start it’s operations.

FAQ's

A Director and a nominee are required to incorporate a OPC.
A nominee is a person who takes over the company in the event of death or incapacity of the promoter.
The OPC shall inform ROC in form INC-5, if the threshold limits is exceeded and is required to be converted into private or public company.
A person can be member in only one OPC.
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.