ONE PERSON COMPANY (OPC)

The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Advantages of OPC:

• Limited Liability
• Continuous Existence
• Easy to Sell OPC
• Full Control over the Company with a Single Owner.
• Easy to raise funds and loans

Checklists of documents required for Registration of OPC:

• Copy of PAN card for Indian Nationals;
• Notarized and/or apostilled passport copy for Foreign Nationals
• Passport/Voter ID/Driving license
• Passport size photographs of all individuals
• Copy of Telephone/Mobile/Electricity bill/Bank statements (less than 2months old) of Directors 
• Electricity/Gas bill (Less than 2 months old) for office premises       
• In case of rented premises a notarized copy of Rent Agreement with a No- Objection Certificate (NOC) for conducting business
• In the case of self-owned premises registered title document
• Mobile no, email id of each Director/shareholder
• Shareholding pattern 

OPC Requirements:

• Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
• Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
• Legal entities like Company or LLP cannot incorporate a OPC.
• The minimum authorised capital is Rs 1,00,000.
• A nominee must be appointed by the promoter during incorporation.
• Businesses involved in financial activities cannot be incorporated as a OPC.
• OPC must be converted to a Private Limited Company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.

Registration Process

1. Name approval:  

• Name for Company is applied through simple web based form.  
• Name is available for 20 days from the date of approval. 

2. Obtaining DSC: 

• After applying for name, next step is to apply for digital signature of all directors/shareholders. 

3. Preparation of Spice forms 

• After collection of all the necessary documents and signing them by directors, the next step is to fill the spice forms, attach all the attachments, affix DSC and submit it on MCA portal. 

4. Allotment of Certificate of Incorporation (COI) with PAN/TAN 

• The MCA will issue COI in 5-6 working days if all the documents are in order as required or else will raise objection requiring correction and resubmission. 
• However, PAN and TAN are issued with COI of Company. 

5. Certificate of Commencement of Business: 

• Every Company within 180 days of its incorporation has to file Certificate of Commencement of Business with MCA to commence business.