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Understanding all About One Person Company: From Idea to OPC

March 6, 2024 by Team Instabizfilings

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OPC is one of the most preferred incorporations for large-scale and small-business owners who want to retain complete control of their businesses. In India, according to section 2 (62) of the Companies Act, 2013, OPC (One Person Company) is a form of business where only one individual is the directory and member of the company.

This comprehensive guide will help you understand everything you need to know about a one-person company. Additionally, we have provided a step-by-step guide from business ideas to forming an OPC company in India.


Definition of One Person Company


A One Person Company (OPC) is a type of private company introduced by the Companies Act, 2013 in India. It allows a single individual to form a company, providing the benefits of a company while ensuring limited liability protection. OPCs can be formed with only one member, who is required to name a nominee. They have distinct legal identities, no minimum paid-up capital requirement, and enjoy several exemptions and privileges under the Companies Act.

Here, we have highlighted the difference between OPCs and Sole Proprietorships:

OPCs (One Person Companies):

  • A type of business entity where the business is owned and managed by a single individual.

  • Offers limited liability protection to the owner, separating personal assets from business liabilities.

  • Requires only one person to incorporate, making it an attractive option for sole entrepreneurs.

Sole Proprietorships:

  • A business owned and operated by one person, with no legal distinction between the business and the owner.

  • Does not provide limited liability protection, exposing the owner's personal assets to business debts.

  • Simple to set up and operate, with the owner having complete control over the business decisions.


Features of a One Person Company in India


In India, a One Person Company (OPC) has several distinctive features that set it apart from other types of companies. Here are some key features of an OPC:

  1. Private Company Status: According to Section 3(1)(c) of the Companies Act, a single person can form a One Person Company in India for any lawful purpose, and it is considered a private company.

  2. Single-Member Structure: OPCs can have only one member or shareholder, unlike other private companies.

  3. Nominee Requirement: When registering the company, the sole member must mention a nominee who will become the company’s sole member in case of the original member's death or incapacity to engage in contractual relations.

  4. No Perpetual Succession: In the event of the sole member’s death, the nominee has the option to become the sole member or reject the position. This is different from other companies that follow the concept of perpetual succession.

  5. Minimum One Director: OPCs must have a minimum of one person (the member) serving as a director, with a maximum of 15 directors allowed.

  6. No Minimum Paid-Up Share Capital: The Companies Act, 2013 does not prescribe any specific amount as the minimum paid-up capital for OPCs.

  7. Special Privileges: OPCs enjoy several privileges and exemptions under the Companies Act that are not available to other types of companies.

These features make OPCs an attractive option for entrepreneurs, especially those in the early stages of business, due to their flexibility and protection of limited liability.


Step-By-Step Guide for Incorporating OPC in India


  • Step 1: Obtain a Digital Signature Certificate (DSC) for the proposed Director of the OPC. This certificate is essential for filing electronic forms during the incorporation process.

  • Step 2: Reserve a name for the Company by filing the name approval application in the Form SPICe+ application. The name should be in the format "ABC (OPC) Private Limited".

  • Step 3: Prepare the incorporation documents and submit them online through the Ministry of Corporate Affairs (MCA) portal. This includes the Memorandum of Association (MOA) and Articles of Association (AOA).

  • Step 4: Get the unique Director Identification Number (DIN) for the proposed Director. This is a unique identification number required for a person to become a director of a company in India.

  • Step 5: Obtain the Certificate of Incorporation from the Registrar of Companies (RoC) after the verification process is complete. This marks the formal registration of the OPC company as a legal entity .

To navigate through the intricate process of registering your One Person Company in India, it is recommended to consult with a reputable legal service provider, who can help you comply with all the rules and regulations of the OPC standard.


Looking for Expert Guidance for OPC Registration?


At Instabiz Filing, our expertise has helped countless entrepreneurs in setting up their business in India. We help our clients navigate through the entire process, from compiling necessary documents to obtaining the certificate of incorporation.

Here’s what sets us apart:

  • Expert Guidance: Our team of experienced professionals will provide you with expert guidance throughout the entire registration process.

  • Affordable Prices: We offer competitive pricing for our OPC company registration and consulting  services.

  • Quick Turnaround Time: We value your time and strive to complete the registration process as quickly as possible.

  • Customer Satisfaction: We take pride in providing exceptional customer service and are committed to your satisfaction.


Start Your One Person Company Today


We offer hassle-free OPC company registration with expert guidance, affordable prices, and quick turnaround time. Visit our official website or contact us to kickstart your entrepreneurial journey today.

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