One Person Company (OPC)
What is a One Person Company (OPC)?
- Single Owner: As the name suggests, OPC is owned and managed by one individual who acts as the sole shareholder and director.
- Limited Liability: The owner’s liability is limited to the extent of their investment in the company. Personal assets remain protected.
- Separate Legal Entity: OPC is a separate legal entity from its owner, meaning it can own property, enter contracts, and sue or be sued in its own name.
Documents Required for OPC Registration
✅PAN card of the applicant
✅Aadhaar card or any government-issued ID proof
✅Passport-sized photograph of the applicant
✅Proof of registered office address (electricity bill, rent agreement, or ownership documents)
✅Digital Signature Certificate (DSC) of the applicant
✅Director Identification Number (DIN) application
One Person Company (OPC)
A One Person Company (OPC) is a unique type of business entity introduced under the Companies Act, 2013 in India. It is designed specifically for solo entrepreneurs who want to start a business with full control but also enjoy the benefits of a company structure. Unlike a sole proprietorship, OPC provides limited liability protection, separating the owner’s personal assets from the company’s liabilities.
Benefits of Registering an OPC
Limited Liability Protection: Personal assets of the owner are safeguarded against business debts and liabilities.
Complete Control: The sole owner has full authority over the company without interference from partners or shareholders.
Credibility and Trust: Being a registered company, OPC gains higher credibility among banks, investors, and customers compared to sole proprietorships.
Easy Fundraising: OPC can raise funds by converting into a Private Limited Company if the business grows.
Tax Advantages: OPC enjoys various tax benefits and can claim deductions as per company laws.
Frequently Asked Questions (FAQs)
Q1. Can a foreign citizen register an OPC in India?
Yes, foreign nationals can register an OPC, but the nominee must be an Indian resident.
Q2. Can OPC convert into a Private Limited Company?
Yes, OPC can convert into a Private Limited Company voluntarily or mandatorily if it crosses specified thresholds.
Q3. Is OPC suitable for all types of businesses?
OPC is ideal for solo entrepreneurs and small businesses but not for companies that require multiple shareholders.
Q4. What is the minimum capital requirement for OPC?
There is no prescribed minimum capital requirement for registering an OPC.
