A one person company (OPC) is a company incorporated under the Companies Act, 2013 with only one person as its member and one director. The member and director can be the same person. An OPC has all the features of a private limited company, such as limited liability, perpetual succession, and a separate legal entity.
The following are the key features of an OPC as per the Companies Act, 2013:
- Only a natural person who is an Indian citizen and resident in India can be the member or nominee of an OPC.
- The authorised capital of an OPC must be at least ₹1 lakh.
- An OPC must have a registered office in India.
- An OPC must appoint a nominee who will take over the management of the company in the event of the death or incapacity of the member.
- An OPC is not allowed to carry on the business
Who can Eligible to register OPC company
According to the Companies Act, 2013, only a natural person who is an Indian citizen and resident in India can be eligible to act as a member and nominee of an OPC. The term “resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
Here are the eligibility criteria for registering a one person company (OPC) in India:
- The member of an OPC must be a natural person who is an Indian citizen and resident in India.
- The member of an OPC must be at least 18 years old.
- The authorised capital of an OPC must be at least ₹1 lakh.
- An OPC must have a registered office in India.
- An OPC must appoint a nominee who will take over the management of the company in the event of the death or incapacity of the member.
Advantages of open OPC company
There are many advantages to opening a one person company (OPC) in India under the Companies Act, 2013. Some of the key advantages include:
- Limited liability: The liability of the member of an OPC is limited to the extent of their shareholding, which means that the member’s personal assets are protected in the event of the company’s debts.
- Separate legal entity: An OPC is a separate legal entity from its member, which means that the company can own assets, enter into contracts, and sue or be sued in its own name.
- Lower compliance requirements: OPCs have lower compliance requirements than private limited companies. For example, OPCs are not required to have a board of directors or to hold annual general meetings.
- Ease of set-up and management: OPCs are easier to set up and manage than private limited companies. This is because there is only one member and one director, which reduces the need for paperwork and meetings.
- Flexibility in decision-making: The member of an OPC has the sole authority to make decisions about the company, which gives the member greater flexibility in running the company.
Disadvantages of open OPC company
Here are some of the disadvantages of opening a one person company
- Limited scalability: OPCs are limited to having only one member, which can restrict their growth potential. If the business outgrows the capacity of a single person to manage it, the owner will need to either bring in a partner or convert the OPC into a private limited company.
- Lack of separation of ownership and management: In an OPC, the owner is also the director. This can lead to a blurring of the lines between ownership and management, which can make it difficult to make objective decisions about the business.
- Limited access to capital: OPCs may have limited access to capital, as they are not able to raise capital through public offerings. This can make it difficult to finance the growth of the business.
- Increased risk: The owner of an OPC is personally liable for the debts of the company. This means that the owner’s personal assets could be at risk if the company is unable to repay its debts.
How Can I register OPC company
Here are the steps on how to register a one person company (OPC) in India as per the Companies Act, 2013:
- Check your eligibility: You must meet the eligibility criteria to form an OPC. You can check the eligibility criteria here.
- Choose a name: You need to choose a unique name for your OPC. The name must not be similar to any other existing company or trademark. You can check the availability of a name here.
- Get a Digital Signature Certificate (DSC): You need to get a DSC to sign the documents required for the incorporation of an OPC. You can apply for a DSC here.
- Get a Director Identification Number (DIN): You need to get a DIN for the director of your OPC. You can apply for a DIN here.
- File the SPICe form: You need to file the SPICe form with the Ministry of Corporate Affairs (MCA) to incorporate your OPC. You can file the SPICe form here.
- Get the Certificate of Incorporation: Once the MCA approves your application, you will receive the Certificate of Incorporation for your OPC.
Best And Cheap Way to Register OPC company
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- Experience: Auriga Accounting Private Limited has over 10 years of experience in the accounting industry, which means they have a deep understanding of the Indian tax and regulatory environment.
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One Person Company registration Complainces
Here are some of the compliances that a one person company (OPC) must follow in India:
- Annual Filing: Every OPC must file an annual return with the Ministry of Corporate Affairs (MCA) within 30 days of the close of its financial year. The annual return must be filed in Form MGT-7.
- Financial Statements: Every OPC must prepare and file its financial statements with the MCA within 30 days of the close of its financial year. The financial statements must be audited by a chartered accountant.
- Statutory Audit: Every OPC with a turnover of more than ₹50 lakh must get its financial statements audited by a chartered accountant.
- Board Meetings: Every OPC must hold at least two board meetings in every financial year. The board meetings must be held at least 30 days apart.
- Nominee Agreement: Every OPC must have a nominee agreement in place. The nominee agreement is a document that appoints a person to take over the management of the OPC in the event of the death or incapacity of the member.
Auriga Accounting Private Limited offers a completely online OPC company registration process, allowing you to register your entity without leaving the comfort of your home. Our experts can complete the entire incorporation process
FAQs On One Person Company (OPC) Company Registration Online In India
Company What Are The Requirement To Open One Person
There must be only one shareholders and only one directors. ✔ An OPC must have only one directors and must be an Indian citizen. ✔ There is no minimum capital requirement. ✔ There is no continued existence allowed in One Person Company Registration.
Can I Register OPC Company Myself?
One Person Company (OPC) can have only 1(One) Shareholder. The first shareholder should execute the Memorandum and Articles of Association for registering the Company. Only an individual who is an Indian Citizen and resident in India can register a Limited Company under the provisions of Companies Act, 2013
Can The Limited Liability Partnership (LLP) Be Converted To A One person Company
Yes, LLP can be converted into Company pursuant to Section 366 of Companies Act, 2013. You need to file Form URC-1 for the same
Which Form Is To Be Filed For The ITR Filing Of A OPC Company?
The e-form MGT-7A is applicable to only One Person Companies (OPCs) and small companies. Other companies established under the Companies Act, 2013 (‘Act‘) must file e-form MGT-7 with the Registrar of Companies
Why Is The OPC Company Best Option For Start-Ups?
An OPC is a sole proprietorship, which means that the business is owned and operated by one individual. This gives the owner complete control over the business and its operations. Limited Liability: One of the biggest advantages of an OPC is that it offers limited liability protection to its owners ..
Minimum Turnover Of One Person Company?
A One Person Company must be mandatorily converted into a Private Limited Company if the annual sales turnover exceeds Rs. 2.00 crores or the paid up capital of the One Person Company exceeds Rs. 50 lakhs.
Is OPC registration mandatory
Presume the supply of goods and services is conducted across the state, regardless of annual turnover. In that case, a one-person company must register for GST. GST registration is required and is broken down into five simple steps for easy comprehension
OPC Company Full Form
ONE PERSON COMPANY
How to close OPC company
A closure of an one person company can be filed when the company is not active and wants to shake hands off its liabilities and compliances. It has to repay or extinguish all their liabilities and receive a No Objection Certificate (NOC) from the creditors before filing the closure application
