Key Features of One Person Company
- Single Owner – As the name suggests, only one individual can act as the sole member and shareholder of the company. However, a nominee must be appointed to take charge in case of the owner’s death or incapacity.
- Separate Legal Entity – OPC enjoys an independent legal identity distinct from its owner, allowing it to own property, enter contracts, and sue or be sued in its own name.
- Limited Liability – The owner’s liability is limited to the amount invested in the business, reducing personal financial risk.
- Lesser Compliance – Compared to private or public limited companies, OPC has fewer compliance requirements, making it ideal for small-scale businesses or startups.
Eligibility Criteria
- Only a natural person who is an Indian citizen and resident in India can incorporate an OPC.
- The nominee must also be an Indian citizen and resident of India.
- An individual cannot form or be part of more than one OPC at a time.
- OPC cannot be incorporated as a Section 8 Company (non-profit organization).
Process of OPC Registration
- Digital Signature Certificate (DSC) & Director Identification Number (DIN) – The sole promoter must obtain a DSC and DIN to sign electronic documents and act as a director.
- Name Approval – The company name must be unique and approved by the Ministry of Corporate Affairs (MCA) through the RUN (Reserve Unique Name) service.
- Filing of Incorporation Forms – Required documents, including Memorandum of Association (MOA), Articles of Association (AOA), nominee details, and identity proofs, are submitted via the SPICe+ form on the MCA portal.
- Certificate of Incorporation (COI) – Once approved, the MCA issues the Certificate of Incorporation, officially recognizing the OPC as a registered legal entity.
- PAN & TAN Application – These are automatically allotted during the registration process for tax purposes.
Advantages of OPC Registration
- Provides corporate structure with minimal compliance.
- Suitable for solo entrepreneurs and small businesses.
- Enhances credibility and attracts funding opportunities.
- Ensures business continuity through nominee succession.
Conclusion
One Person Company registration is a beneficial option for entrepreneurs who want to start a business without partners while still enjoying the perks of a corporate entity, such as limited liability, separate legal identity, and simplified compliance. It bridges the gap between a sole proprietorship and a private limited company, making it a preferred choice for many small business owners and professionals in India.
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