An Overview of One Person Company (OPC)

One Person Company (OPC) is an organizational structure where a single person owns the entity. Prior to implementing the Companies Act, 2013, a single person was not allowed to establish a company. If the person was to start a business, then they have to opt for the sole proprietorship structure with a minimum of two directors and two members. The OPC structure was launched recently as an improvement to the existing sole proprietorship firm. The main characteristics of OPC are that there is only a single director and a single member, which makes it comparatively easier to manage.

We at Taxrepair are well-versed with all the eligibility criteria of an OPC company and will efficiently guide our clients in getting their OPC company registered as smoothly as possible.

Document Required for Registering a One Person Company in India

The documents mentioned below need to be filed while registering for one person company in India.

For Director or Nominee

• PAN Card scanned copy (Mandatory)
• Scanned copy (for ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• Scanned copy (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• mobile or telephone bill
• gas or electricity bill
• Passport size photograph

For Registered Office

• The latest No-objection certificate scanned copy from the property owner if the registered office is on leased or rented property.
• Scanned copy of sale deed or property deed; if the applicant owns the property of the registered office.
• Scanned copy (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• mobile or telephone bill
• gas or electricity bill

Benefits of Registering a One Person Company

Limited Liability

The liability of the director of OPC is limited to the investment made in the business. It means that if the OPC becomes insolvent, then the director’s personal property or personal saving is not at risk.

Testing Ground for Business Model

OPC is one of the best ways for aspiring entrepreneurs to test their business model, and if they are successful in building a sustainable business model, they can confidently approach venture capitalists or Angel investors for funding and get a chance to expand their small
businesses.

Ease of Management

OPC is one of the easiest organizational structures that can be managed easily. Moreover, unlike other entities with a requirement of two or more directors and members, OPC only has a single director; thereby, it makes the decision making and the subsequent execution process faster.

Continuous Existence

OPC as a company has a separate legal identity and has a feature of perpetual succession. During the OPC incorporation, the single member has to appoint a nominee; thereby, the company will continue to exist even after the death of the director as the ownership will be passed on to the nominee director.

Ease of Compliance

The compliance requirements of OPC are relatively less than the other structures, thereby making it easier for the director to fulfil all the compliance prerequisites quickly. For example, an OPC is not required to prepare a cash flow statement; also, the company secretary is not required to sign the annual returns and account books that can be signed by the director itself.

Timelines for Registering a One Person Company

The entire registration process of One person company will take approximately 10-15 days, dependent upon the approval from the various departments as well as the revert from the concerned department.

We are one of the most cost-effective firms for registering one person company. Our expert team at Taxrepair will be with you at every step of the way throughout the registration process.