Register One Person Company

Before the enactment of Companies Act, 2013, minimum two persons were required to register a private company. Companies Act, 2013 introduced the concept of One Person Company (OPC) opened avenues for individual businessman and entrepreneurs to carry out their business as a separate legal entity with the advantages available to a sole proprietary concern and at the same time with limited liability. To form an OPC, only one person is required as a promoter/member.

Following are the advantages which One Person Company offers

• Brand Building
• Limited liability
• Easy access for loans/financial assistance from firms\
• Only one person is required to register the company and thereby eliminating need to associate with any other person to register the company
• Only one Director is required
• Get recognition as startup (if conditions are satisfied)

What is the criteria for becoming member in an OPC

• A Person shall satisfy following conditions to become a member of an OPC
• He/She should be an individual/natural person
• He/She must be an Indian Citizen
• He/She must be a resident in India (who has stayed in India for at least 182 days in the previous calendar year)

What are the additional criteria to be followed in case of OPC

• The member shall nominate another person as a nominee of OPC (after obtaining his/her consent) who shall in the event of death or incapacity of the promoter, become the member of the OPC
• Name of the company shall have the word ‘OPC’. For ex. ABC PRIVATE LIMITED (OPC) or ABC (OPC) PRIVATE LIMITED.

Is it possible to change the nominee of OPC

Yes, Member can at any time change the name of the nominee

Can a Nominee withdraw his consent to become a nominee of an OPC

Yes, Nominee can after giving notice to the promoter, withdraw his consent

What is the minimum amount of capital to be invested

There is no minimum amount prescribed

What are the limitations of OPC

• A person can register only one OPC
• A person cannot become nominee of more than one OPC
• Minor cannot become a member or nominee of an OPC or can hold share with beneficial interest
• OPC cannot be converted into a section 8 Company (i.e. companies formed not for profit purpose)
• OPC cannot be converted voluntarily to any kind of company within two years of registration, if the paid up capital or turnover do not increase beyond fifty lakh and two crores respectively within two years.
• On exceeding the paid capital of Rs fifty lakh or turnover of two crores OPC shall mandatorily convert it either as a private company with two members or public company with three members

What would be the status/class of an OPC

An OPC have the status of private company, but with only one member

What are the documents required to be submitted for registering an OPC

For Digital Signature

• PAN card and residential proof of member
• Passport Size Photograph of Member

For Director Identification Number

• PAN card and residential proof of proposed director
• Passport size photograph of proposed director

For Incorporating the Company

• Proof of office address
• Copies of utility bill (not older than two months)
• PAN card and residential proof of nominee
• Other documents will be prepared by the concerned professional (Affidavits, MOA, AOA, Declarations)

If you need any further assistance in registration of society, you can contact the author