What is a One-Person Company (OPC)?

Introduced under the Companies Act, 2013, One-Person Company (OPC) allows a single person to establish a company, merging the advantages of sole proprietorship and company structures. This structure supports small businesses and MSMEs, allowing one person to act as both director and shareholder. As per Section 2(62) of the Companies Act, a company can be formed with just one director and one member, who can be the same individual. OPC registration provides limited liability while promoting formal entrepreneurship.

Eligibility Criteria for OPC Registration

To register an OPC, the following criteria must be met:

• Natural Person & Indian Citizen: Only Indian citizens, not legal entities (Corporates), can establish an OPC.
• Resident in India: The promoter must have lived in India for at least 182 days in the previous year.
• Authorized Capital: Minimum authorized capital is Rs. 1,00,000.
• Nominee Appointment: A nominee must be appointed to take over in case of death or incapacity.
• Business Restrictions: OPCs cannot engage in financial activities like banking or insurance.
• Conversion to Private Limited: If the capital exceeds Rs. 50 lakhs or turnover crosses Rs. 2 crores, conversion to a private limited company is required.

Advantages of OPC

• Limited Liability: Personal assets are protected from company liabilities.
• Simplified Compliance: OPCs benefit from reduced compliance obligations.
• Perpetual Succession: The company continues to exist even if the sole member changes.
• Ease of Fundraising: OPCs can raise funds from venture capitalists, investors, or banks.

Disadvantages of OPC

• Limited to Small Scale: OPCs are best suited for small businesses.
• Business Restrictions: OPCs cannot engage in certain business activities like NBFCs.
• Ownership vs. Management: The single owner serves as both director and shareholder, blurring the lines between ownership and management.

OPC Registration Process in India

OPC registration is conducted via the SPICe+ form, a simplified digital process.

• Name Reservation: Reserve the company name through SPICe+ (Part A).
• Prepare MOA & AOA: Draft the Memorandum and Articles of Association.
• File Forms: Submit the required forms and documents.
• Incorporation Certificate: Upon approval, the Registrar issues the Certificate of Incorporation, marking the official registration of the OPC.

Why Choose OnEasy for OPC Registration?

OnEasy offers expert assistance in registering your OPC, ensuring legal compliance at affordable fees. Our team handles every step, from name reservation to document submission, making the process seamless and hassle-free.