One Person Company

What is a One Person Company (OPC)?

A One Person Company (OPC) is a type of business entity in India that allows a single individual to operate a company with limited liability protection. This structure provides a simpler way for individuals to start and manage their own business while enjoying the benefits of a corporate framework.

Key Features of an OPC

1. Single Shareholder:
   
   
   • Only one person can be the shareholder of the OPC.
   
   
   • The shareholder can also be the sole director or appoint others as directors.
   
   


2. Limited Liability:  The shareholder’s liability is limited to the amount of capital they have invested in the company.


3. Separate Legal Entity:
   
   
   • The OPC is a separate legal entity distinct from its owner.
   
   
   • It can own property, enter into contracts, and be sued in its own name.
   
   


4. Perpetual Succession:   The OPC can continue to exist even after the owner’s death, provided a nominee is appointed.


5. Less Compliance:   OPCs have fewer compliance requirements compared to other types of companies.
   

Benefits of an OPC

1. Limited Liability Protection:   The personal assets of the owner are protected in case of business liabilities.


2. Ease of Management:   Simplified decision-making process as there is only one owner.


3. Separate Legal Entity:   The OPC is a distinct entity from its owner, providing legal protection and easier access to credit and invest.


4. Continuity:   The OPC continues to exist even after the death of the owner, ensuring business continuity through the nominee.

Eligibility Criteria for OPC Registration

1. Individual Ownership:  Only an Indian citizen and resident (residing in India for at least 182 days in the preceding financial year) can incorporate an OPC.


2. Nominee:  The owner must appoint a nominee who will take over the business in case of the owner’s death or incapacity.


3. Non-Eligibility for Certain Activities:   OPCs cannot carry out Non-Banking Financial Investment activities, including investment in securities of any body corporates.


4. Minimum and Maximum Paid-Up Capital:   The OPC should have a minimum paid-up capital as prescribed by the Companies Act, 2013, with no specific upper limit.




Required Documents for OPC Registration

1. Identity Proof:   PAN card of the owner and nominee.


2. Address Proof:  Aadhaar card, voter ID, passport, or driving license of the owner and nominee.


3. Office Address Proof:
   
   
   • Rent agreement and utility bill (electricity bill, water bill, etc.) if the registered office is rented.
   
   
   • Property ownership documents and utility bill if the registered office is owned by the owner.
   
   


4. Photographs:   Passport-sized photographs of the owner and nominee.


5. Nominee Consent:   Written consent of the nominee in Form INC-3.


6. Digital Signature Certificate (DSC):   DSC of the owner.


7. Memorandum of Association (MoA):   The MoA of the proposed OPC.


8. Articles of Association (AoA):   The AoA of the proposed OPC.





Conclusion

Registering an OPC is a straightforward process that provides significant benefits to individual entrepreneurs looking to start their own business with limited liability protection and simpler compliance requirements. By following the steps outlined above and ensuring that all required documents are in order, you can successfully incorporate an OPC and take advantage of its many benefits.For more detailed information or assistance with the OPC registration process, feel free to contact us at ATHWISE Services Private Limited. Our expert consultancy team can guide you through the registration process and help you establish your OPC efficiently.



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