A One Person Company (OPC) is a corporate business structure, introduced by the Companies Act of 2013, that allows a single individual to act as both the sole director and shareholder, offering limited liability protection. It provides a distinct legal entity separate from its owner, featuring perpetual succession and lower compliance compared to private limited companies, making it ideal for solopreneurs.

Key Points:

Structure: An OPC must have only one member (shareholder) and one director, who can be the same person. A nominee must be appointed during registration to take over in case of the owner's death.

Legal Standing: It is a separate legal entity, meaning the owner’s personal assets are protected from company liabilities.

Registration Requirements: Only natural persons who are Indian citizens and residents (or NRIs with specific conditions) can incorporate an OPC.

Capital & Turnover Limits: There is no minimum capital requirement. However, if the turnover exceeds ₹2 Crore or paid-up capital exceeds ₹50 Lakhs, it must convert into a Private Limited Company

Advantage:

Limited Liability: Owner risk is limited to the shares held.

Perpetual Succession: The company continues to exist even if the owner dies, through the nominee.

Easier Compliance: Fewer compliance requirements compared to private limited companies (e.g., no need for Annual General Meetings).

Credibility: Higher trust level than a sole proprietorship

Limitation:

Cannot Raise Equity: OPCs cannot raise funds from external investors or issue ESOPs.

Restriction on Activities: Cannot undertake Non-Banking Financial Investment activities or investment in securities.

Single-Person Limitation: A person cannot form more than one OPC.

Documents Required for OPC Registration

A. Owner’s (Shareholder Cum Director) Document:

• Aadhar Card or Election ID Card or Passport or Driving License (Any One)
• Photo
• Personal Saving Bank Account Statement/Passbook
• Mobile Number and Email Id
• Company Office Address – Latest Utility Bill (Electricity Bill/Telephone Bill, NoC)

B. Nominee Document:

• Any one ID Card of Nominee
• Address Proof of Nominee – Electricity Bill or Bank Statement/Passbook
• Photo
• Mobile and Email id

Package: 12,000/-

Package includes:

 

• OPC Company Registration
• MoA and AoA of OPC
• Name Reservation Charges
• Government OPC Fees and Stamp Duty
• PAN Card of OPC
• TAN Card
• MSME Registration
• DIN of One Director
• Digital Signature of Director and Nominee
• OPC Bank Account Opening
• INC-20A Business Commencement
• ADT-1 Auditor Appointment