One Person Company
A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and 2 Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.
One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act, 2013, a single person could not establish a company. If an individual wanted to establish his business, he/she could opt only for a sole proprietorship as there had to be a minimum of two directors and two members to establish a company.
One Person Company
One Person Company Details
Types of One Person Company
Advantages of One Person Company
- Legal Status - The separate legal entity of the OPC gives protection to the single individual who has incorporated it.
- Easy to obtain funds - Since OPC is a private company, it is easy to go for fundraising through venture capitals, angel investors, incubators etc.
- Less Compliances - The Companies Act, 2013 provides certain exemptions to the OPC with relation to compliances.
- Easy Incorporation - It is easy to incorporate OPC as only one member and one nominee is required for its incorporation.
- Easy to manage - It is easy to make decisions, and the decision-making process is quick.
- Perpetual Succession - While incorporating the OPC, the single-member needs to appoint a nominee. Upon the member’s death, the nominee will run the company in the member’s place.
Disadvantages of One Person Company
- Suitable for only small business - OPC is suitable for small business structure. The maximum number of members the OPC can have is one at all times.
- Restriction of business activities - The OPC cannot carry out Non-Banking Financial Investment activities, including the investments in securities of anybody corporates.
- Ownership and management - Since the sole member can also be the director of the company, there will not be a clear distinction between ownership and management.
Procedure of One Person Company Registration
- Complete OPC Form - You are required to fill up the details in the prescribed form.
- Obtain DSC and DIN for OPC - Then, we shall obtain DSC and DIN for directors and apply for the name approval of OPC.
- Verification and Approval - Details provided by you for OPC registration will be verified by our experts.
- Your OPC is Ready - Once your OPC is registered, we shall send you TAN and PAN via courier.