One Person Company (OPC)

Section 2 (62) of Companies Act defines a one-person company as a company that has only one person who operating the whole company & its operations. Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead of sole proprietorship business because of the several advantages that OPCs offer & have less compliances comparing to other businesses.

A One Person Company (OPC) is a type of business entity that can be formed with a single individual as the shareholder and director. The eligibility criteria for forming an OPC are generally as follows:

• Individual Eligibility: The sole shareholder must be a natural person who is an Indian citizen and resident in India.
   

• Director: The sole shareholder can also be the director of the OPC. Alternatively, the OPC must appoint one more director who must be a resident of India.
   

• Legal Entity: The individual cannot be a minor, and no more than one OPC can be owned by a single person.
   

• Registered Office: The OPC must have a registered office in India.
   

These criteria ensure that the OPC is managed effectively and maintains a clear legal framework for its operations.

• Limited Liability: Unlike sole proprietorships, OPCs offer limited liability protection to their sole member.
   
• Separate Legal Entity: An OPC is a distinct legal entity, separate from its owner.
   
• Continuity: The Company continues to exist beyond the life of its member.
   
• Less Compliance: OPCs have fewer compliance requirements compared to other corporate entities.
   
• Ease of Management: Simplified management structure with fewer complexities.

• Digital Signature Certificate (DSC): Obtain DSC for the director to sign electronic documents.
   
• Director Identification Number (DIN): Apply for DIN for the proposed director who does not already have one.
   
• Nominee Consent: Prepare and obtain consent from the nominee using Form INC-3.
   
• Name Approval: Submit the name approval application through the RUN service on the MCA portal.
   
• Incorporation Application: File the incorporation application using SPICe+ form along with MOA, AOA, and other required documents.
   
• Verification and Approval: MCA verifies the application and documents. If everything is in order, the Certificate of Incorporation is issued.
   
• Post-Incorporation Compliance: Obtain PAN and TAN, open a bank account, and register for GST if necessary.

1. Director Identification Number (DIN)

• Photographs
• Identity Proof: PAN card (mandatory for Indian nationals)
• Address Proof: Passport, voter ID, driving license, or Aadhar card
   

2. Digital Signature Certificate (DSC)
 

3. Memorandum of Association (MOA)
 

4. Articles of Association (AOA)
 

5. Proof of Registered Office Address

• Utility bill (electricity, water, gas, or telephone) not older than 2 months
• Rental agreement, if applicable
• NOC from the owner of the premises
   

6. Identity and Address Proof of Subscribers and Directors
 

7. Nominee's Consent Form (INC-3): Consent of nominee along with their PAN and Aadhaar card.

• Assisting in obtaining DSC and DIN
• Guiding through the nominee consent process
• Facilitating name approval and incorporation application
• Ensuring compliance with all legal requirements
• Providing ongoing support for post-incorporation compliance