One Person Company (OPC) Incorporation

According to Section 2(62) of Companies Act a "One Person Company is a company which has only one person as a member". An OPC is the most contemporary form of business in India proposed by the Companies Act, 2013.

It is the simplest form of business organization to manage as you are the only owner. The OPC is suitable for small businesses where the turnover does not cross the threshold limit of ₹ 2 Crores.

One Person Companies are helping an increasing number of entrepreneurs to come up with their new business and initiate their growth and expansion which helps in building the general economy of India as well.

Moreover, OPC Incorporation appreciates the advantages in banking terms and organizations are more likely to be acceptable for Banking loans and credits. In India, One Person Company (OPC) can be incorporated with fewer compliance requirements than a Private Limited Company.

• A natural person who is resident of India is eligible to incorporate One Person Company (OPC).
• Only one member can form an OPC.
• An individual can incorporate only one OPC and can be a nominee in one OPC only.
• In case of an OPC, the turnover should not exceed ₹ 2 crores in the immediately preceding financial year and the paid-up capital should not exceed ₹ 50 lakh.
• It is important to include the name of the nominee during the registration of an OPC.

The following are the benefits your business and other other stakeholders like directors, creditors will receive after registering as a One Person Company (OPC)-

Sole Ownership

The Director of OPC is entitled to get all profits of the company as he is the single owner of the company.

Perpetual Existence

As an OPC gets all the benefits of a company it can continue perpetually for a foreseeable future.

Limited Liability

The liability of the sole owner of the OPC is limited to the extent of the value of the unpaid amount of shares. This also encourages new, young and innovative business start-ups.

Ease in funding

OPC can avail all the benefits of a legally registered entity from Banks and Financial Institutions.

Easy to Incorporate

Registration of OPC is extremely easy and 100% online.

Smooth Management

As the Decision making power is of the sole shareholder, the decisions can be taken quickly which helps in smooth functioning of the business.

Increase In Trust And Status

As OPC runs in a form of company it always enjoy benefits of increased trust and status.

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Here is the list of important documents required for registration of One Person Company (OPC) -

• Identity Proof
• Aadhar card of Director and nominee.
• PAN card of Director and nominee
• Passport, in case of NRIs and foreign nationals
• Latest utility bill such as gas/electricity bill/ Mobile/landline bill (For Director and nominee’s  address proof)
• Specimen signature of Director and nominee
• Passport-size photographs
• Latest Passport size photograph of Director and nominee.
• Latest Gas or electricity bill/ bank account statement/ mobile phone or landline Bill
• (For business address proof)
• Rent agreement, if the property is rented.
• A No objection Certificate (NOC) from the owner of the property, whether the property is rented or owned.

Note

In case of a non-resident Director, the documents must be notarized.

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