One Person Company

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ONE PERSON COMPANY (OPC)

One Person Company or OPC means a company which has only one person as a member.

An OPC is classified as a private company under Companies Act. OPC has all benefits of a private limited company such as protecting personal assets from business liability, separate legal entity and perpetual succession. One Person Company (OPC) is a Company registered with ONLY ONE PERSON as its shareholder.

A One Person Company can have owned by Only a natural person who is Resident in India and Citizen of India. No corporate entity can be as shareholder (owner) of a One Person Company.

There is no minimum or maximum paid-up capital restriction for One Person Company. It can be converted into private limited or public limited at any time.

One Person Company is not allowed to take any partner (Shareholder). But, OPC can convert into private limited or public limited and add partners(shareholders).

COMPANY NAME

The name of a OPC shall end with the words ‘(OPC) Private Limited’. Proposed Company Name shall comply with the Company Name Availability Guidelines under Companies Act 2013

There are TWO ways for reserving a name for a New One Person Company.

a. RUN (Reserve Unique Name) is an easy and web-based application for reservation of a Company Name. The name approved under RUN Process is valid for a period of 20 days from the date of approval. In one application, Two names can be submitted for approval under RUN process. If the application is rejected, the another Two more names can be submitted again. If that also rejeccted by ROC offce, a fresh application to be fiiled with fresh filing fee.

b. SPICe (Simplified Proforma for Incorporating Company Electronically) Incorporation Filing process is an integrated single point application for Reservation of Company Name, Allotment of DIN for Directors and Incorporation of a New Company along with allotment of Permanent Account Number (PAN) and Tax Collection and Deduction Number (TAN) to the New Company. Under SPICe application, only ONE name can be submitted for approval.

SHARE CAPITAL

There is no minimum capital (Authorised or Paid-up Capital) requirement for registering an OPC.

The registration fee payable to the Registrar of companies depends on the different slabs of Authorised capital of the company.

The First Shareholder must bring the subscribed capital to the Company with in 60 days of Company Incorporation and the Company must issue share certificates to the subscribers.

REGISTERED OFFICE ADDRESS

Registered Office refers to the official correspondence address of a company or its principal place of business. The address of the Registered Office will be used for all official communications of the company.

WHO CAN REGISTER OPC?

Only a natural person who is an Indian citizen who is resident in India or otherwise not less than 120 days during the last days during the immediately preceding financial year.

HOW MANY OPC ONE PER CAN CREATE?

As per the rules, one person can create only ONE OPC and can be nominee in another OPC.

FAQs on One Person Company Registration

Directors Identification Number (DIN) is an identification number issued by the Ministry of Corporate Affairs, Government of India, to Directors of a company or Designated Partners of an LLP.
 
 
 
 
New DIN will be allotted to a Director / Designated Partner while registeting a Company or LLP. Also, an Company / LLP can apply for a DIN for a proposed Director / Designated Partner.
 
 
 
 
 
ONE Person who is an Indian National and resident in India can register an OPC. Also it requires another person as Nominee Shareholder. So, in effect you need TWO People for registering an OPC. The Primary Shareholer can also be a Director.
 
 
 
 
 
New DIN will be allotted to a Director / Designated Partner while registeting a Company or LLP. Also, an Company / LLP can apply for a DIN for a proposed Director / Designated Partner.
 
 
 
 
 
An India National (Individal), who is resident in India can only become a Shareholder or Nominee Shareholde in an OPC. Foreign Nationals, Non Resident Indians, Companies and LLPs cannot become a Shareholder or Nominee Shareholde in an OPC.
 
 
Only individuals can become directors of the company. There is no restrictions for Foreign Nationals or Non Resident Indians to become a director of an OPC.
 
 
A Person can register only ONE OPC. Also a person can not become nominee in more than one OPC.
 
 
 
 
 
 
 
MOA is the charter document of a company. A company is created by registering a memorandum. MOA contains the name of a company, the state in which the registered office of the company is located, objectives, and its authorised capital. The MOA will be subscribed by the initial promoters of the company in their own handwriting. They will also have to write their name, father's name, residential address, occupation and the number of shares they agree to subscribe in the company. The MOA should also bear the signature of the witness who knows the subscribers.
 
 
 
 
 
 
AOA contains rules and regulations for the management of a company's internal affairs and conduct of its business. It defines the relationship of company between its members and directors and relation between members and directors. It also describes powers of directors. Further, the AOA describes the rights and duties of its members as well as the duties and responsibilities of its directors. In case of a private limited company, the AOA will contain the restrictions of transfer of shares, if any. Also, AOA usually contains the names of first directors of a company. The AOA will be subscribed by the initial promoters of the company in their own handwriting. Promoters will have to write their names, father's name, residential address, and occupation. The AOA should also bear the signature of the witness who knows the subscribers.
 
 
 
 
 
 
 
The details of subscribers to the MOA & AOA cannot be amended or changed at any point of time during the life of the company, as it constitutes the document giving birth to a company. Subsequent changes in the shareholding or directorship of the company should be reflected in its internal records and will not affect the subscriber details in the MOA & AOA
 
 
 
 
 
 
 
The details of subscribers to the MOA & AOA cannot be amended or changed at any point of time during the life of the company, as it constitutes the document giving birth to a company. Subsequent changes in the shareholding or directorship of the company should be reflected in its internal records and will not affect the subscriber details in the MOA & AOA
 
 
 
 
 
 
 

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