One Person Company 

Overview

A One Person Company (OPC) is a unique business structure in India, introduced to encourage individual entrepreneurs to venture into business without the burden of forming a full-fledged company. OPC allows a single individual to own and manage a business while enjoying the benefits of a corporate entity. This structure provides limited liability protection, meaning the owner’s personal assets are protected from the business’s debts and liabilities.

An OPC also offers the advantages of perpetual succession, ensuring business continuity even in unforeseen circumstances. Ideal for small business owners, solo entrepreneurs, and startups, an OPC simplifies decision-making and reduces compliance burdens compared to other corporate forms. At Legal Corner, we assist you in navigating the OPC registration process, ensuring all legal requirements are met seamlessly, so you can focus on growing your business.

Eligibility

• Single Shareholder:
  An OPC can have only one shareholder, who must be a natural person and an Indian resident. This individual will be the sole owner and director of the company.
• Nominee Requirement:
  A nominee must be appointed in the event of the owner’s death or incapacity. The nominee must also be an Indian resident and is crucial for ensuring business continuity.
• No Minimum Capital Requirement:
  There is no minimum capital requirement to form an OPC, making it accessible to individual entrepreneurs with varying financial capacities.
• One Person Only:
  The owner of an OPC cannot be part of more than one OPC at a time, ensuring that this structure remains a truly singular entity.
• Registered Office:
  The OPC must have a registered office within India, which serves as the official address for all legal communications and correspondence.

Benefits

• Limited Liability Protection:
  The owner’s personal assets are protected from the liabilities of the business, ensuring financial security even if the business faces debts or legal issues.
• Simplified Compliance:
  OPCs enjoy simplified compliance compared to other corporate structures, with fewer regulatory requirements and easier management.
• Perpetual Succession:
  The business continues to exist even after the owner’s death or incapacity, thanks to the mandatory nominee who takes over the reins.
• Full Control:
  As the sole shareholder and director, the owner has full control over the business, making decision-making quicker and more streamlined.
• Separate Legal Entity:
  The OPC is a separate legal entity from its owner, allowing it to own property, enter contracts, and sue or be sued in its own name.

Procedure

• Obtain Digital Signature Certificate (DSC):
  The first step is to obtain a DSC for the sole shareholder, enabling secure and legally compliant electronic document filings.
• Apply for Director Identification Number (DIN):
  The sole shareholder must apply for a DIN, which is mandatory for legal recognition as the director of the OPC.
• Reserve OPC Name:
  File an application to reserve a unique name for the OPC, ensuring it meets the naming guidelines under the Companies Act, 2013.
• Draft and File Memorandum of Association (MOA) and Articles of Association (AOA):
  Prepare the MOA and AOA, which outline the company’s objectives and internal governance, and file them with the Registrar of Companies (ROC).
• Appoint a Nominee:
  The nominee’s consent must be obtained and filed with the ROC, ensuring that the business has a designated successor in case of the owner’s death or incapacity.
• File Incorporation Forms:
  Submit Form INC-32 (SPICe) along with the MOA, AOA, and other necessary documents to the ROC for approval.
• Obtain Certificate of Incorporation:
  Upon approval, the ROC will issue the Certificate of Incorporation, officially recognizing the OPC as a legal entity.
• Apply for PAN and TAN:
  Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) to comply with tax regulations.
• Open a Bank Account:
  Set up a corporate bank account to manage the OPC’s financial transactions, ensuring smooth and regulated business operations.

Why Legal Corner

• Comprehensive Legal Expertise:
  Our team comprises seasoned professionals with deep knowledge of company law and business regulations, ensuring your OPC is set up in full compliance with legal standards.
• End-to-End Service:
  From initial consultation to post-registration compliance, we provide a complete suite of services, handling every aspect of the process so you don’t have to worry about a thing.
• Customized Advisory:
  We understand that every business is unique. That’s why we offer personalized advice tailored to your specific needs and objectives, ensuring your OPC is structured for success.
• Affordable Pricing:
  We believe in providing top-tier services at competitive rates, offering transparent pricing with no hidden fees. Our goal is to deliver maximum value without breaking your budget.
• Client-Centered Approach:
  At Legal Corner, our clients are our top priority. We’re committed to delivering exceptional customer service, with prompt responses and proactive support to ensure your satisfaction.

FAQ