Incorporate One Person Company (OPC) in India
One Person Company
One Person Company (OPC) in India was first introduced in the Companies Act, 2013. A single person who is capable enough and want to start a Company can now do it through OPC, thus we can say OPC is blend of Sole-proprietorship and Corporate form of business, with lesser compliance then a private limited company. However same is not possible in Private limited Company or LLP where minimum 2 person are required to start a company or LLP.
Individual enjoys some of the key characteristics of Private limited company that is a separate legal entity from that of a promoter unlike Proprietorship business where there is no separate legal entity. A single person is in different role of director, member and shareholder.
Why choose an OPC?
Across the world, One Person Company is very popular, but it was introduced in India in 2013. One Person Companies are preferred by Lenders and Capitalist over Proprietorship Firms. It gives a sense of confidence to suppliers, customers and workforce.
Unlike Private Company, LLP and Partnership Firm, OPC is the only form of registered business which requires single person. Thus no need to hunt for a good partner/associate
In case of proprietorship business the liability of the sole proprietor is unlimited. If due to any unfortunate event, the business lands up in crises, the personal assets of the proprietor can be at risk. But there is no risk of losing any personal assets in case of One Person Company as the Liability of the shareholder is limited.
One Person Company enjoys the recognition of Limited Liability like Private Limited Company and also at the same time the compliance which is to be done by OPC is very less as compared to Private Limited Company. For Example – There is no Requirement of Extra ordinary general meeting, notice of meeting, quorum,etc.
Small Scale Industries
OPC can avail many benefits available to like easy funding from bank without any security up to a certain limit, lower rate of interest, and many other schemes made by government for SSI.
An OPC being a registered business, enjoys better credibility than proprietorship business and thus can easily raise funds through Venture Capital, Financial Institutions, Angel Investors and so on.
Process for Registering OPC
Digital Signature Certificate
Apply for digital signature for proposed directors
Reserve Unique Name
Reserve Unique LLP name using RUN services with the Ministry of Corporate Affairs. Click here to check name availability
Drafting MOA & AOA
Drafting MOA and AOA for the company for specifying objective, registered address and other rules of the company
Filing all the documents, MOA and AOA with Registrar of companies along with a prescribed fees, on approval Incorporation Certificate will be issued
Documents Required for Incorporating OPC
1. Photograph of all the Directors and Nominee
2. PAN Card of all the Directors and Nominee
3. Passport of Foreign Directors
4. Identity proof of all the directors & Nominee (Passport/Driving License/Voter ID)
5.Rent Agreement/Sale deed/NOC of a landlord and Electricity bill or any other utility bill for the address proof of the registered office of the company. (Not older than 2 months)
Details Required for Incorporating OPC
1. Email ID and Contact number of all directors and company
2. Qualification of Directors
3. Place of Birth of Directors.
4. Proposed Name of Company. (Check Name availability here)
5. Nature of business
1. Must have a registered office in India.
2. Declaration from directors