One Person Company is a best option for those who runs a proprietorship firm and really like to get the identity and benefits of a company for their organization. Normally for a Private Limited Company, it requires minimum of 2 members (Directors) for incorporation, whereas OPC only requires an individual for the incorporation. One Person Company incorporates under the Companies Act, 2013.
The main attraction of One Person Company is that it has only one shareholder, who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of nominee is compulsory, who will take place of the owner in case of death or in his inability. One Person Company (OPC) resembles with a Private Limited Company.
A One Person Company (OPC) registered in India obtains the status of a separate legal entity, hence have an own identity rather than of the owner unlike a proprietorship firm. OPC can own assets on its own name and enter in to contract with the parties. The assets and liabilities of the company are independent form the owner which is the main advantage of the One Person Company.
A One Person Company (OPC) has lesser compliance compared to Private Limited Company. Compliances like holding General and Board Meetings are exempted for an OPC. In case of more than one director, Board Meetings are mandatory.
The best part in registering an OPC lies in the separate legal entity of the company where the liability and obligations are not charged over the personal assets of the sole member. The liability of the member is limited to the unpaid amount of capital subscribed by member. Except in certain specified cases, the personal assets of the member are protected even in the case of liquidation.
The owner can appoint a director owing up to the responsibility to operate and run a company even if the One Person Company is owned by a single person. The operational duties will be assigned to the director/s whereas the member would be able to fetch profits channeling efforts towards other businesses. The shareholder holds complete control over, being a stake holder in a One Person Company,
Identification plays an important role in making a business outstanding in competitive market, build an unique and distinctive name for your business hence enhance your brand’s trust and value. Consumers should identify activity of your business from the brand name so that they can relate your business with its offerings.
Even though it meets all the above criteria, once again make sure that the brand name to be short, easy to remember and simple to pronounce or spell.
The name of a registered One Person Company must end with (OPC) Private Limited as suffix. (Example: XYZ CONSTRUCTIONS (OPC) PRIVATE LIMITED)
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Your One Person Company (OPC) is incorporated
Only one person, who is a citizen and permanent resident of India and is 18 years or older, can be a member. A person can be a member of only one OPC at a time.
No, the requirement for minimum paid-up capital has been removed. However, the subscriber must hold at least one share, and a minimum of INR 1 Lakh must be kept as Authorized Capital.
An Indian citizen and permanent resident of India, aged 18 or older, can be a nominee. The nominee must provide consent for their appointment.
Any person above the age of 18, of any nationality, can become a director after obtaining a Director Identification Number (DIN). The application for DIN is now merged with the company formation application, with a limit of a maximum of three directors.
DIN is a unique number assigned by the Ministry of Corporate Affairs to individuals, allowing them to be a director in any company or a designated partner in an LLP.
A Digital Signature Certificate (DSC) is issued by Certifying Authorities and is required for online OPC registration. The nominee, shareholder, and directors will need a DSC for submitting e-forms and applying for a DIN.
Authorized capital is the maximum amount of capital a company can raise by issuing shares. Paid-up capital is the actual amount raised from shareholders. An OPC can be registered with any amount of paid-up capital, which can be less than but not exceeding the authorized capital.
Yes, an OPC can conduct multiple related businesses if they are mentioned in the company’s Memorandum of Association (MoA) and approved by the registrar. Unrelated activities cannot be registered under the same company.
Yes, a company can be registered at a residential or commercial place by providing the necessary proofs.
