One Person Company

ONE PERSON COMPANY

ONE PERSON COMPANY (OPC) IS A UNIQUE BUSINESS STRUCTURE WHERE A SINGLE INDIVIDUAL ACTS AS BOTH THE DIRECTOR AND SHAREHOLDER. MORE THAN ONE DIRECTOR IS PERMITTED, BUT ONLY ONE SHAREHOLDER IS PERMITTED. OPC IS REGISTERED IN COMPLIANCE WITH THE GUIDELINES SET BY THE MINISTRY OF CORPORATE AFFAIRS (MCA).

PURPOSE

The concept of One Person Company (OPC) has emerged as a significant improvement over sole proprietorship. In an OPC, a single promoter has complete control over the company, limiting their liability to their contributions. The promoter acts as the sole shareholder and director, with the provision of a nominee director who assumes power only if the primary director becomes incapable of fulfilling contractual obligations. This structure ensures greater autonomy and protection for the promoter while simplifying the compliance requirements.

DOCUMENTS REQUIRED

PAN card or Passport
Passport (for NRIs and Foreign Nationals)
Scanned copy of Driver's License or Voter’s ID
Updated gas or electricity invoice, Bank account statement, or Mobile or landline phone invoice
Specimen signature or impression
Passport-sized photo

STEPS INVOLVED

Directors Identification Number (DIN) for at least one director.

Scanned copy of the rental agreement in English (if applicable).

Scanned copy of the No-Objection Certificate (N-O) from the concerned property landowner.

Scanned copy of the Property or Sale Deed in English (if the property is owned).

Scanned copy of the current Bank Account Statement, Phone or Mobile Invoice, or Gas or Electricity Invoice.

FREQUENTLY ASKED QUESTIONS

WHO CAN REGISTER FOR AN OPC?

Only Indian residents are eligible to register for an OPC. The Ministry of Corporate Affairs specifies that only one person can register as the owner of the company.

WHAT ARE THE MANDATORY REQUIREMENTS OF AN OPC?

An OPC must maintain books of accounts, comply with statutory audit requirements, and submit income tax returns and annual filings to the Registrar of Companies (RoC).

HOW MUCH CAPITAL IS REQUIRED TO START AN OPC?

The capital requirement for an OPC is the same as that of a private limited company. It requires an authorized capital of Rs.1 lakh to begin with, but none of this capital needs to be paid-up initially. This means that there is no actual need to invest any money into the business.