An One Person Company (OPC) is a company formed with only one person as a member (shareholder). This sole member will also typically be the director, although an OPC can have up to 15 directors. The key feature is that it allows a single individual to operate a formal company with limited liability, giving them the same benefits as a private limited company.

Key Characteristics of an OPC:

• Single Shareholder: It can have only one member/shareholder.
• Nominee Requirement: A crucial aspect of an OPC is the mandatory appointment of a nominee. This nominee will become the member of the company in the event of the sole member's death or incapacity, ensuring perpetual succession.
• Limited Liability: The liability of the single member is limited to the extent of their shares in the company, protecting their personal assets from business debts.
• Separate Legal Entity: An OPC is a distinct legal entity from its owner, capable of owning property, entering contracts, and suing or being sued in its own name.

Corporate Identity: It has a corporate identity, and its name must end with "(OPC) Private Limited".

• Natural Person: Only a natural person can be a member (shareholder) and nominee of an OPC.
• Indian Citizen and Resident: The person forming the OPC (sole member) must be an Indian citizen and a resident in India. A "resident in India" means a person who has stayed in India for a period of not less than 120 days during the immediately preceding financial year. (Note: The "resident" definition was relaxed from 182 days to 120 days in the Companies (Incorporation) Second Amendment Rules, 2021).
• One Person, One OPC: An individual cannot incorporate more than one OPC or be a nominee in more than one OPC.
• Minor Restriction: A minor cannot be a member or nominee of an OPC.
• Activities: OPCs cannot be formed for charitable purposes (Section 8 company). They also cannot carry out non-banking financial investment activities, including investment in securities of any body corporate.

1. Limited Liability Protection: This is the most significant advantage. The owner's personal assets are separate from the company's liabilities, providing protection from business debts and losses.
2. Separate Legal Entity: The company has its own legal existence, distinct from its owner. This enhances credibility and makes it easier to enter into contracts, raise funds, and manage assets.
3. Perpetual Succession: Unlike a sole proprietorship, an OPC has perpetual succession. The business continues even if the sole member dies or becomes incapacitated, as the appointed nominee takes over.
4. Enhanced Credibility: Being a registered company under the Companies Act, 2013, an OPC enjoys higher credibility and trust among banks, suppliers, and customers compared to a sole proprietorship.
5. Easier Access to Funding: While not as easy as a Private Limited Company for equity funding, an OPC can still raise funds from banks and financial institutions more easily than a proprietorship due to its formal corporate structure and limited liability.
6. Full Control and Flexible Management: The sole member retains complete control over all aspects of the business and decision-making, without the need for multiple directors or shareholder approvals.
7. Fewer Compliances than Private Limited Companies: OPCs enjoy several exemptions and relaxations in compliances compared to private limited companies, such as:
   • No requirement to hold an Annual General Meeting (AGM).
   • Only two board meetings in each half of a calendar year (with a minimum 90-day gap).
   • Annual return can be signed by the company secretary or, if no CS, by the director.
   • No need to prepare a cash flow statement as part of financial statements.
   • Certain exemptions in general meetings, board meetings, and related party transactions.

Eaztaxbiz ensures a smooth and compliant process for your business in Pimpri-Chinchwad.

Contact us today to start your registration!

The OPC registration process is entirely online and involves filing various forms with the Ministry of Corporate Affairs (MCA) through the integrated SPICe+ form. While documents are primarily uploaded digitally, you will need to have the following information and scanned copies ready:

1. Documents of the Proposed Director & Shareholder (Same Person):

• PAN Card: Mandatory.
• Aadhaar Card: Mandatory (for e-KYC and DIN application).
• Proof of Identity (any one, self-attested): Voter ID, Driving License, Passport.
• Proof of Address (any one, self-attested, not older than 2 months): Bank Statement, Electricity Bill, Mobile Bill, Telephone Bill (landline), Gas Bill.
• Passport Size Photograph: Recent, color photograph.
• Email ID & Mobile Number: For OTP verification and communication.
• Digital Signature Certificate (DSC): Mandatory for e-filing. (We assist in obtaining this).
• Director Identification Number (DIN): Applied through the SPICe+ form itself.

2. Documents of the Nominee:

• PAN Card: Mandatory.
• Aadhaar Card: Mandatory.
• Proof of Identity (any one, self-attested): Voter ID, Driving License, Passport.
• Proof of Address (any one, self-attested, not older than 2 months): Bank Statement, Electricity Bill, Mobile Bill, Telephone Bill (landline), Gas Bill.
• Passport Size Photograph: Recent, color photograph.
• Consent (Form INC-3): A declaration from the nominee giving consent to act as a nominee.

3. Registered Office Address Proof (Place where the company will be located):

• If Owned Property:
  • Latest Electricity Bill / Water Bill / Gas Bill (not older than 2 months).
  • Property Tax Receipt or Sale Deed (if owned).
• If Rented/Leased Property:
  • Copy of Rent/Lease Agreement.
  • No Objection Certificate (NOC) from the Landlord for using the premises as the registered office.
  • Latest Electricity Bill / Water Bill / Gas Bill of the landlord (not older than 2 months).

4. Company Documents (Drafted by Professionals):

• Memorandum of Association (MoA): Outlines the objectives, main business activities, capital, and liability of the company.
• Articles of Association (AoA): Contains the internal rules and regulations for the management of the company.
• Declaration in Form INC-9: Declaration by the director/subscriber confirming their compliance with the Companies Act.
• Consent to Act as Director (Form DIR-2): Formal consent of the proposed director.

5. Other Information:

• Proposed Name of the OPC (with alternatives).
• Main objects of the company.
• Authorized Share Capital (no minimum paid-up capital requirement, but generally start with at least ₹1 Lakh authorized capital for stamp duty purposes).
• Number of shares subscribed by the sole member.
• Details of the company's business activities (NIC codes).

The process of OPC registration, while streamlined, involves multiple steps and technical requirements that can be complex for a first-time entrepreneur. Our expert team at Eaztaxbiz in Pimpri-Chinchwad simplifies this for you:

• DSC & DIN Procurement: We assist in obtaining the Digital Signature Certificate and Director Identification Number for the director and nominee.
• Name Approval: We help you select a unique name and manage the name approval process with the MCA.
• Document Preparation: Expert drafting of MoA, AoA, and all required declarations and consents.
• Application Filing: Seamless online filing of the integrated SPICe+ form with all necessary attachments to the MCA.
• PAN & TAN Allotment: We ensure your company's PAN and TAN are generated along with the Certificate of Incorporation.
• Post-Registration Support: Guidance on opening a company bank account and fulfilling initial compliance requirements (like Commencement of Business certificate, if applicable).
• Comprehensive Advisory: Clear explanations of OPC advantages, disadvantages, and ongoing compliance obligations specific to your business needs.

Partner with Eaztaxbiz for efficient and expert One Person Company (OPC) registration in Pimpri-Chinchwad.