One Person Company

An One Person Company (OPC) is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.

1. Director:

• Minimum no. of directors required is 1.
• Any natural person can be a director of the company.
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Directors are the managers and they are responsible for day to day functioning of the OPC.

2. Shareholder:

• Minimum no of shareholders required is 1 and shall be Indian Resident.
• Director and Shareholders can be the same.
• Shareholder is the owners of the company.
• The shareholder has to appoint nominee in case of his/her death the nominee takes over the place of the shareholder.

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which OPC is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the OPC even the residential place can be used as the registered office of the OPC.

5. Registering Authority:

• Ministry of Corporate Affairs.

6. Required Documents

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)

Shareholder and Nominee Holder

> PAN Mandatory

> Proof of Identity – Voter Id/Passport/Driving License

> Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)

1. Obtain Digital Signature Certificate (DSC)
2. Prepare SPICe+ form (Part A – Name availability and reservation request)
3. Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)
4. Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)
5. Download all the e-forms prepare online and affix DSC on all the e-forms.
6. Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.
7. Verification of documents / forms by RoC
8. Issue of Certificate of Incorporation by RoC

Advantages

1. A SEPARATE LEGAL ENTITY
2. EASY FUNDING
3. MINIMUM REQUIREMENTS
4. BENEFITS OF BEING A SMALL SCALE INDUSTRIES (SSI)
5. MORE OPPORTUNITIES, LIMITED LIABILITY
6. SINGLE OWNER
7. BENEFITS UNDER INCOME TAX LAW

Disadvantages

 1. RESTRICTED ACCESS TO CAPITAL MARKETS
2. NATURAL PERSON
3. SUITABLE ONLY FOR SMALL BUSINESS
4. RESTRICTION ON BUSINESS ACTIVITIES
5. HIGH TAX RATES
6. FOREIGN DIRECT INVESTMENT