One Person Company

One Person Company is introduced and regulated by The Companies Act 2013 and Rules made thereunder.Here, only one member is required to form an OPC and same is being allowed to operate a corporate entity along with limited liability protection. Ministry of corporate affairs has put efforts to change overall process and came up with simple steps to incorporate a one person company.

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Benefits of One Person Company Formation

Improve Credibility

Limited Liability

Attract Funding

Separate Legal Entity

Prerequisites for One Person Company Formation

Can be established by any natural person (Age : 18+) who is Indian Citizen and Resident in India.
Nominee must be appointed at the time of incorporation.
OPC can not be formed to carry out financial activities.
A person can incorporate only one OPC.

Documents required for One Person Company Formation

For Company :

Proposed Name of Company
Address Proof of Company

For Member & Nominee :

Proof of Identity : Passport/ Driving License/ Voter ID
Proof of Address : Bank Statement / Electricity Bill / Phone Bill
Additional Documents : PAN and Aadhar

FAQ on One Person Company Formation

What tax advantage an OPC have ?

OPC does not carry any specific tax advantage over other form. The tax rate and other tax provisions like MAT & Dividend Distribution Tax applies at par with other form of company.

What are limitations o Conversion of OPC ?

Mandatory Conversion :

Paid-up share capital exceeds Fifty Lakh rupees ; OR
Average annual turnover of preceding three consecutive financial years exceeds Two Crore rupees

Voluntary Conversion :

After 2 years of incorporation One Person Company can apply for converting itself to Private Limited Company or Public limited company

Can the member of the OPC change the nominee ?

As per the third proviso to section 3(1) of the Companies Act 2013, the member of the OPC may at any time change the name of the nominee by giving notice.

How many Directors can OPC appoint ?

OPC can have one or more Directors on its board. No special mention has been made for the number of directors. As per the provisions of Sec 149 a OPC can have a maximum of 15 directors. It can, however appoint more than 15 directors after passing a special resolution.