The concept of One Person Company (OPC) in India by introducing Companies Act, 2013. The main aim to introduce the concept of One Person Company is to enable the Entrepreneur(s) carrying business in the Sole-Proprietor form of business to enter into a Corporate Framework.
One person company can be formed by an Individual. Similar to company, OPC enjoys the benefits of Limited Liability, Separate Legal Entity and Perpetual Succession. Thus, One Person Company is a combination of Sole-Proprietor and Company form of business, and has been provided with concessional/relaxed requirements under the Act.
OPC have some limitations like every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores. OPC can not raise it Paid up Capital to more than 50 Lacs. OPC files audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year.
PAN Card of proposed Directors
No Objection Certificate (NOC) from the owner
Latest photograph of the proposed director
Latest photograph of the Nominee
Electricity / Water / Telephone Bill / Bank Account Statement of the proposed director
Electricity / Water / Telephone Bill / Bank Account Statement of the proposed nominee
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited.
Continuity of business / existence of the company is not affected by the status of the owner.
Transferability of Shares
The Shares of the company are easily transferrable by a shareholder to another. However, restrictions imposed in AOA to be considered.
Lesser compliance burden as compared to private limited and public limited company.