OPCs are ideal for solo entrepreneurs, freelancers, and small business owners who want to maintain control while enjoying limited liability protection.
Section 2(62) of the Companies Act, 2013, “One Person Company” means a company which has only one person as a member. OPC is a type of business entity that allows a single individual to operate a company with limited liability protection.
1. Single owner: Only one person can own and manage the company. 2. Limited liability: The owner's personal assets are protected in case of business debts or liabilities. 3. Separate legal entity: The company has its own legal identity, separate from the owner. 4. Compliance requirements: OPCs must comply with relevant laws and regulations, such as filing annual returns and tax returns. 5. Name: The company name must include "OPC" or "One Person Company" to indicate its status.
1. Reservation of name by filing SPICe+ Part A form: : SPICe+ Part A form is an online application for registering a new company in India. Ensure that the selected name is unique and includes "OPC" or "One Person Company".
2. Obtain DSC (Digital Signature Certificate): Required for filing documents online.
3. Filing SPICe+ forms: Spice+ form is an online application for incorporation, which is to be filed after name approval and it is consists of SPICe+ Part B, INC-33 (e-MOA), INC- 34 (e-AOA), Agile pro and INC-9, along with necessary attachments.
4. Certificate of incorporation: MCA after proper verification of documents submitted with the SPICe+ forms and upon approval, issues the Certificate of Incorporation (COI) as proof of company registration.
Documents required:
Q1: What is a One Person Company (OPC)? A1: An OPC is a type of private company with only one shareholder and director. Q2: Who can form an OPC? A2: Any individual, including professionals and entrepreneurs, can form an OPC. Q3: What are the benefits of an OPC? A3: Benefits include limited liability, single ownership, simplified compliance, and tax benefits. Q4: Can an OPC have more than one director? A4: No, an OPC can only have one director, who is also the shareholder. Q5: Can an OPC raise funds from investors? A5: No, OPCs cannot raise funds from multiple investors or venture capitalists. Q6: Can an OPC convert to a private company? A6: Yes, an OPC can convert to a private company after two years. Q7: What is the minimum authorized capital for an OPC? A7: There is no minimum authorized capital requirement for an OPC. Q8: Can a foreign national form an OPC? A8: No, only Indian citizens and residents can form an OPC. Q9: Can an OPC own property? A9: Yes, an OPC can own property in its own name. Q10: What are the compliance requirements for an OPC? A10: OPCs must file annual returns, tax returns, and other necessary documents with the Registrar of Companies (ROC). Q11: Can an OPC be dissolved? A11: Yes, an OPC can be dissolved voluntarily or by the ROC in case of non-compliance.