One Person Company

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One Person Company (OPC)

One Person Company (OPC) is a type of company where only one person is required to constitute
the company, it has the features of private limited company with very less compliances and
requirements.

It is the company in India for the individuals who wants to register their business and want all the benefits of a company but does not want to loose the control or just want to manage the business individually. This structure is particularly suited for small businesses and startups, combining the simplicity of a sole proprietorship with the liability protection of a private limited company.

This concept was introduced by Companies Act,2013, With passage of time, the OPC mode of business organisation is all set to become the most preferred form of business organization specially for small entrepreneurs. The One Person Company concept holds a bright future for small traders, entrepreneurs.

Ministry of Corporate Affairs vide its G.S.R. Notification No. 250(E) dated 31st March, 2014 notified the Companies (Incorporation) Rules, 2

Difference Between Opc And Proprietorship

BASIS	ONE PERSON COMPANY	PROPRIETORSHIP
SEPARATE LEGAL ENTITY	The owner and the company are separated and have separate legal entity.	Here the owner and the company are same and has no separate legal entity.
PERPETUAL SUCCESSION	It has perpetual succession.	No perpetual succession.
LIABILITY	The liability of the owner is limited.	Here the liability is unlimited for the owner.
REGISTRATION	Registration is mandatory to do under Companies Act, 2013.	No mandatory registration is required.

Benefits Of One Person Company(Opc)

Minimal paper work and compliance as compare to private limited company
The individual person can get separate legal entity starting business with only one
member
This company can easily convert in other legal entities by adding more members and
amendment in Memorandum of Association
Simple and easy annual return filings
Exemption from holding
Annual general meetings (AGM)
Loans are easy to take from banks and financial institution due to limited liability
The sole owner and director, the individual has complete control over the company’s
operations and decision

Eligibility Criteria for OPC Registration in India

Single shareholder: Only one person is required to register an OPC who must be an Indian
citizen
Nominee: The sole owner must nominate one Nominee who can take care of the company in
case of his death or incapability
Minority: The owner who will be the sole owner cannot be a minor

Documents Required to Register an ONE PERSON COMPANY

PAN Card: Copy of the PAN card of the owner and nominee director.
Identity Proof: Aadhar card, Driving License, voter ID, or passport of the owner and nominee
director.
Address Proof: Latest utility bills, such as water or electricity bill, Mobile Bill or bank
statements (Not more than 2 months) of the sole shareholder and nominee director.
Registered Office Address Proof: Rent agreement and a no-objection certificate (NOC) from
the property owner (If rented), or utility bills if the property is owned.
Passport-Size Photographs: Recent passport-sized photographs of the sole shareholder and
nominee director.
Memorandum of Association (MOA): A document outlining the company’s objectives and
business activities.
Articles of Association (AOA): A document detailing the rules and regulations governing the
company’s internal management.

One Person Company