One Person Company

One Person Company (OPC) can be formed with only 1 owner, who acts as both the director as well as a shareholder of the company. There can be more than 1 director, but not more than 1 shareholder. It is registered as per the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).

In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract).

Limited Liability

The directors' personal property is always safe in a private limited company, no matter the debts of the business.

Continuous Existence

Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.

Greater Credibility

As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.

Steps to register

The process for incorporation of a One Person Company can be divided into four steps as under:1)Obtaining Digital Signature, 2)Obtaining Name Approval, 3)Incorporation Filing, 4)Commencement of Business. Digital signature certificate must be obtained for the sole promoter and the nominee for processing the incorporation. Application for DSC would require passport size photos of the applicant, identity proof and address proof. Name approval applications are processed by the MCA in 24-72 hours.

The name suggested must conform to the naming standards, and the name of the OPC must end or include the words (OPC). After obtaining name approval, incorporation application can be filed to the MCA with signed Memorandum of Association (MOA) and Articles of Association (AOA). Once the incorporation certificate is obtained, the OPC would initiate the process for bank account opening. Once, the equity capital is infused into the Bank's current account; the Company can file for the commencement of business with the MCA.

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