Register a One Person Company

Understanding One Person Company:

One Person Company (OPC) represents a progressive approach aimed at providing individual entrepreneurs the benefits typically associated with private limited companies.

Introduced under the Companies Act 2013, OPC signifies a pivotal departure from traditional corporate structures. While a minimum of 2 Directors and Members are mandated for a Private Company, and a minimum of 3 Directors and 7 members for a Public Company, OPC revolutionizes the landscape by enabling single-person incorporation, a feat previously unattainable.

Sections, Regulations, and Rules Applicable to OPC

• Section 2(62) of the Companies Act, 2013.
• Companies Incorporation Rules, 2014 (Rules 3 to 7).
• Schedule 1 of the Companies Act, 2013.

Key Features of OPC under the Companies Act, 2013

As per Section 2(62) of the Companies Act, 2013, read in conjunction with Rule 3 of the Companies Incorporation Rules, 2014:

• An OPC is defined as a company with only one person as a member.
• Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate an OPC or act as a nominee for the sole member of an OPC.
• The term "resident in India" refers to a person who has stayed in India for at least One Hundred and Eighty Two Days during the immediately preceding financial year.

Advantages of OPC

• Limited Liability: OPC offers extended opportunities with limited liability, restricting liability to the value of shares held.
• Separate Legal Entity: OPC enjoys the status of a distinct legal entity capable of conducting business activities.
• Fundraising Potential: OPC can readily raise funds to support its operations.
• Reduced Compliance Burden: OPC experiences lesser compliance obligations compared to private limited companies.
• Enhanced Trust and Reputation: OPCs often garner increased trust and reputation within the industry.
• Flexible Structure: OPC can be limited by guarantee or shares, or opt for an unlimited company structure.
• Meeting Exemptions: OPCs are not obligated to hold annual general meetings, and provisions regarding meetings and quorum do not apply to them.