One Person Company (OPC) Registration

Understanding One Person Company (OPC)

A **One Person Company (OPC)** is a hybrid corporate entity introduced in India by the Companies Act, 2013, to encourage corporatization of small businesses and entrepreneurship. It allows a single person to form a company with limited liability, without the need for multiple shareholders or directors.

Unlike a sole proprietorship, an OPC provides the owner with limited liability, meaning their personal assets are protected from the company's debts and obligations. It combines the benefits of a sole proprietorship (single ownership) with the advantages of a private limited company (separate legal entity, limited liability, perpetual succession).

An OPC must have one member (shareholder) and one nominee. The nominee would become the member of the OPC in case the original member dies or becomes incapacitated.

Key Features of an OPC

Discover what makes an OPC a unique and beneficial business structure.

Single Member

Owned and managed by a single individual who is the sole shareholder.

Limited Liability

The liability of the member is limited to the extent of their share capital.

Separate Legal Entity

The company has its own legal identity, distinct from its owner.

Nominee Requirement

Mandatory to appoint a nominee who will take over in case of the member's death/incapacity.

Perpetual Succession

The existence of the company continues even with changes in its member.

Simplified Compliance

Lesser compliance burden compared to a Private Limited Company.

Advantages of Registering an OPC

Opting for an OPC structure offers several benefits for entrepreneurs and small businesses:

**Limited Liability Protection:** Protects personal assets from business risks and liabilities.
**Easy to Fund:** Easier to raise capital from banks and financial institutions compared to a sole proprietorship.
**Enhanced Credibility:** Provides a more professional and credible image than a proprietorship.
**Structured Growth:** Offers a clear corporate structure that can be easily converted into a Private Limited Company as the business grows.
**Reduced Compliance Burden:** Fewer compliances compared to multi-member private companies, yet retains corporate benefits.
**Tax Benefits:** Can avail various tax deductions and incentives applicable to companies.
**Simplified Decision Making:** The single member has full control over all decisions, leading to quick and efficient operations.

Talk2Market helps you set up your OPC efficiently, allowing you to focus on your business goals.

Eligibility & Documents for OPC Registration

Understand the requirements and documents needed for a smooth OPC registration process.

Eligibility Criteria for OPC

**Only a Natural Person:** Only a natural person who is an Indian citizen and resident in India can be a member and nominee of an OPC. (A person is considered resident in India if he has stayed in India for a period of not less than 120 days during the immediately preceding financial year).
**One OPC per Person:** A person can incorporate only one OPC.
**No Minor as Member/Nominee:** A minor cannot be a member or nominee of an OPC.
**No Section 8 Company:** An OPC cannot be incorporated or converted into a Section 8 Company (non-profit organization).
**Threshold for Conversion:** If the paid-up share capital exceeds INR 50 Lakhs or the average annual turnover exceeds INR 2 Crores, the OPC must convert into a Private Limited or Public Limited Company within six months.

Common Documents Required

**PAN Card:** Of the proposed director/member and nominee.
**Proof of Identity:** Aadhaar Card, Voter ID, Passport, or Driving License of the proposed director/member and nominee.
**Proof of Address:** Bank statement, electricity bill, telephone bill, or mobile bill (not older than 2 months) of the proposed director/member and nominee.
**Registered Office Address Proof:** Rent agreement (if rented), electricity bill, property tax receipt, or sale deed (if owned).
**NOC from Owner:** No Objection Certificate from the owner of the registered office premises.
**Passport Size Photographs:** Of the proposed director/member and nominee.
**Digital Signature Certificate (DSC):** Of the proposed director/member.
**Director Identification Number (DIN):** Of the proposed director/member.

Our Streamlined OPC Registration Process

Talk2Market ensures a hassle-free and swift OPC registration experience.

DSC & DIN Procurement

Assisting in obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Name Approval

Filing for name approval (RUN form) with the Ministry of Corporate Affairs (MCA).

Document Preparation

Drafting of Memorandum of Association (MOA) & Articles of Association (AOA).

E-filing of Forms

Online filing of integrated form SPICe+ (SPICe Plus) and AGILE-PRO with MCA.

PAN, TAN, EPFO, ESI, GST

Simultaneous application for PAN, TAN, EPFO, ESI, and GSTIN (if applicable) through SPICe+.

Certificate of Incorporation

Upon approval, receipt of the Certificate of Incorporation from MCA.

Ready to start your One Person Company?

Talk2Market offers end-to-end support for your OPC registration, ensuring compliance and ease.

Register Your OPC Today