A one person company is a company which contains exactly one member. It is a separate legal entity from its promoter and the promoter has limited liability. A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Limited Company, a minimum of two Directors and Members are required. A single person could not incorporate a Company previously. But now as per Section 2(62) of the Company’s Act 2013, entrepreneurs who are capable of starting a venture on their own can make use of one person company (OPC) in India. In one person company (OPC), there is only one shareholder who is an Indian citizen and Indian resident. It is a form of a company where the compliance requirements are lesser than that of a private limited company.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the Company – who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.
Documents & Details Required for Registration of One Person Company (OPC):
A. Directors and Capital:
- Minimum one Indian Resident Director and one Indian Resident Nominee Director are required.
- Minimum Capital should be Rs. 100000/-.
B. Documents & Details for Director and Nominee:
- PAN Copy (Self Attested)
- ID Proof (Self Attested)- Voter ID/ Passport/ Driving Licence
- Address Proof (Mobile Bill/Telephone Bill/ Electricity Bill/ bank statement not older than 2 months)
- Passport Size Photo
- Mobile No.
- Email ID
C. Documents & Details for Company:
- Name of Company
- Main Objects of Company
- Office Address Proof (Rent Agreement, Electric Bill & NOC if rented or Electric Bill & NOC if self)
- Email ID
- Mobile No.