One Person Company (OPC)

A One Person Company (OPC) is a business structure in India that allows a single person to own, manage, and have complete control over a company:

Benefits

OPCs offer the benefits of both a sole proprietorship and a company, including:

• Limited liability: Personal assets are separate from the company’s liabilities
• Separate legal entity: The OPC is a separate legal entity from the owner
• Flexibility: There’s no need to consult with other shareholders or directors

Eligibility

OPCs are a good option for solo entrepreneurs who want to start their own business without a partner

Registration

OPCs were introduced in the Companies Act of 2013 to promote entrepreneurship and formalize MSMEs

Restrictions

There are restrictions on the number of OPCs a person can form, and the turnover and paid-up capital of an OPC are limited

Conversion

If an OPC’s turnover exceeds Rs. 2 Crores or its paid-up capital exceeds Rs. 50 lakhs, it must be converted into a private or public limited company

To register an OPC, you’ll need:

• Copy of PAN
• Copy of passport (for non-resident Indians)
• Copy of proof of identity
• Copy of residential proof
• Consent to act as nominee
• Passport size photograph
• Specimen signature
• Declaration in Form INC-9 (for non-resident Indians)

One Person Company (OPC)