A One Person Company (OPC) is a type of private company that can be formed by just one individual. It combines the benefits of a sole proprietorship and a private limited company, offering limited liability and perpetual succession.
One Person Company (OPC) Registration: Simplifying Entrepreneurship
What is a One Person Company (OPC)?
A One Person Company (OPC) is a type of private company that can be formed by just one individual. It combines the benefits of a sole proprietorship and a private limited company, offering limited liability and perpetual succession.
Why Choose OPC Registration?
- Limited Liability: The liability of the member is limited to the company’s shares, protecting personal assets.
- Separate Legal Entity: The OPC has a separate legal identity from its member, providing legal protection.
- Ease of Management: With fewer compliance requirements compared to other company structures, managing an OPC is straightforward.
- Fundraising: OPCs can easily attract venture capital, angel investors, and loans from financial institutions.
Steps to Register an OPC
- Name Approval: Reserve a unique name for your OPC using the RUN (Reserve Unique Name) service.
- Digital Signature Certificate (DSC): Obtain a DSC for the proposed director.
- Director Identification Number (DIN): Apply for a DIN for the director.
- Incorporation: File the SPICe (Simplified Proforma for Incorporating Company electronically) form (INC-32) along with eMoA (INC-33) and eAoA (INC-34).
- PAN and TAN: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
- Registered Office: File form INC-22 within 30 days of incorporation if the registered office address is different from the correspondence address.
Frequently Asked Questions (FAQs)
Can an OPC be converted into a private or public company? Yes, if the paid-up share capital exceeds ₹50 lakh or the average annual turnover exceeds ₹2 crore, the OPC must convert into a private or public company.
How long does it take to register an OPC? The entire process can take about 10-15 days, depending on the speed of government approvals3.
What is the minimum capital required for an OPC? There is no minimum paid-up capital requirement, but the authorized capital should be at least ₹1 lakh.
Can a foreign national register an OPC in India? Yes, a foreign national can register an OPC in India, provided they have a valid visa and the necessary documents.
What are the compliance requirements for an OPC? OPCs have fewer compliance requirements compared to private and public companies. They do not need to prepare a cash flow statement, and the company secretary need not sign the books of accounts and annual returns1.