One person company (OPC) is a new concept that gained a big success for sole entrepreneurs and proprietorship firms. It combines the benefits of a private limited company with that of a proprietorship firm and thus, allows an individual to reap the benefits of being a company with limited liability. The individual can take riskier decisions without having to worry about losing personal assets and this has encouraged many startups and young entrepreneurs to register as an OPC. Register a One Person Company in India and accelerate your business.
Documents of Director and Nominee:
One Person Company has only one director. In case you’ve more than one director, you’ll need to form a Private Limited Company.
Excludes Foreign National or Foreign Body corporates as director OR businesses that need approval from RBI, SEBI or IRDA for incorporation.
It’s mandatory to have one person as Nominee director, who will control the entity after the expiry or incapacity of the current director.
The nominee is entitled to withdraw her consent, in which case the director is required to nominate another nominee within 15 days. The withdrawal and the nomination of a new person must be intimated to the RoC within 30 days.
The director can change the nominee for any reason by providing notice in writing. Again, the change and the nomination of a new person must be intimated to the RoC within 30 days
If an OPC company has a turnover of Rs. 2 crores for three years or the paid-up capital increases above INR 50 lakh, it's to be converted to a Private Ltd. or Public Ltd. within six months.
Every company, post incorporation requires help from Three professionals: CS, who looks after regulatory compliance, CA, who does accounting and taxation, External CA, for doing external audits. Learn more about compliance here.
Your registered office need not be a commercial space; it can be your residence too. A recent copy of the utility bill and an NoC letter from the utility bill owner to use the address for company incorporation should be submitted.
The incorporation process is completely online, so you don’t have to visit any place and can get the company registered from anywhere.
Yes, for OPC, the director must be an Indian resident.
Yes. It’s necessary to appoint an auditor within 30 days of incorporation.
OPC can have only one director and shareholder. Also, there are often no opportunities for contributing to employee stock options or equity funding and OPC has to be mandatorily converted to Private Limited once it has a turnover of Rs. 2 crores for three years or the paid-up capital increases above INR 50 lakh.