One-Person Company (OPC) Registration in India

One Person Company (OPC) registration in India was introduced under the Companies Act 2013, allowing a single individual to establish a company and reap the benefits of both a sole proprietorship and a traditional company. This concept became available after the enforcement of the Companies Act in 2013.

The primary objective of introducing the One Person Company was to promote entrepreneurship and facilitate the corporatization of Micro, Small, and Medium Enterprises (MSMEs). It offers all the advantages of a Private Limited Company, including perpetual succession, separate legal entity status, and personal asset protection against company liabilities.

Benefits of OPC

One Person Company has gained popularity in India as an ideal business structure for entrepreneurs seeking to start a business while requiring additional resources or time to manage a full-fledged company. It provides several benefits to entrepreneurs and small business owners, making it a viable option for commencing a business.

• Limited Liability: One of the key advantages of an OPC is its limited liability to its owner. Since a single shareholder owns the company, they are solely responsible for its debts and losses. This safeguards the owner's assets from any claims or lawsuits against the business.
• Low Setup Costs: Establishing an OPC involves minimal setup costs compared to other companies. Small business owners and entrepreneurs can initiate their ventures without significant financial investment.
• Easier Compliance: OPCs are subject to fewer regulatory requirements than other companies, simplifying compliance with relevant laws.

Characteristics of One-Person Company

• Eligibility: Only a natural person who is an Indian citizen and a resident of India can incorporate a one-person business and be nominated as the company's sole member.
• Nominee Requirement: OPCs are distinct from other business entities as the sole member must nominate a person during registration. Individuals can only incorporate or be a nominee in one OPC.
• Shareholding Restrictions: Minors are not allowed to possess shares or become members or nominees of an OPC.
• Restriction on Section 8 Companies: OPCs cannot be incorporated or converted into Section 8 companies, organizations established for promoting charitable or non-profit objectives.
• Prohibited Activities: OPCs are prohibited from engaging in non-banking financial investment operations, such as purchasing corporate securities.
• Corporate Structure Changes: OPCs can only unilaterally alter their corporate structure after two years since incorporation unless their paid-up capital increases by more than 50 lakh rupees or their average annual turnover exceeds two crore rupees.
• Resignation Requirement: If a person already a member of one OPC becomes a nominee in another OPC within 180 days, they are required to resign from either OPCs.
• Company Name: The words "One Person Company" must be mentioned in brackets beneath the company name wherever it is printed, attached, or engraved.

Overall, an OPC presents an attractive option for entrepreneurs in India, offering benefits such as easy setup and management, personal liability protection, tax savings, and access to capital. If you're an entrepreneur planning to start a business in India, considering the One Person Company structure could be your right choice.

Start Your OPC Registration through IndiaFilings

IndiaFilings is your reliable partner when it comes to OPC registration. We offer comprehensive assistance and support throughout the entire process. Our team of experts is well-versed in the legal requirements and procedures involved in OPC registration in India. By choosing IndiaFilings, you can benefit from our knowledge and experience, ensuring a smooth and hassle-free registration experience.

We guide the necessary documentation, OPC compliance requirements, and legal procedures to ensure your OPC registration is completed accurately and efficiently. Our commitment to excellent service means that we will be with you every step of the way, addressing any queries or concerns you may have.

With IndiaFilings as your trusted partner, you can have peace of mind knowing that your OPC registration is in capable hands. We strive to deliver exceptional service, ensuring that you can focus on building and growing your business while we handle the intricacies of the registration process.