The incorporation of a One Person Company (OPC) involves the process of registering and legally establishing a company with a single person as its sole member and director.

The key steps involved in the incorporation of a One Person Company are as follows:

(i) obtaining DSC; 

(ii) Reserve Unique Name (RUN); 

(iii) Preparation of MOA and AOA of the company; 

(iv) Filing of Incorporation documents; 

(v) Consent and declarations from Nominee; 

(vi) Payment of statutory government fee and 

(vii) Receiving Certificate of Incorporation on registered email address.

Yes, One Person Company (OPC) is a legal business structure in India. The concept of OPC was introduced in the Companies Act, 2013, to provide a framework for single entrepreneurs to operate as a company while enjoying the benefits of limited liability.

Only a natural person who is an Indian citizen, not a minor and resident in India shall be eligible to incorporate and act as a member and nominee of an OPC.

The term “resident in India” for the purposes of incorporating One Person Company (OPC) as per the Companies Act 2013, means a person who has stayed in India for a period of not less than one hundred and twenty days during the immediately preceding one financial year. Please note that for any other Company (Private Limited/ Public Limited) the resident is a person having stayed in India for a period of not less than one hundred and eighty two days.

Further, A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company

The choice between an OPC (One Person Company) and a Pvt Ltd (Private Limited Company) depends on several factors and the specific needs and circumstances of the business owner. Here are some considerations to help you evaluate which structure might be better suited for your situation:

Sole Ownership: If you prefer to have complete control and ownership of your business without the need for additional shareholders or directors, an OPC might be more suitable as it allows you to operate as a separate legal entity while being the sole member and director.

Scale and Future Growth: If you have plans for significant expansion, raising external funding, or attracting multiple shareholders, a Private Limited company may be more appropriate. Private Ltd companies can have multiple shareholders, making them more flexible for future capital infusion and ownership changes.

Compliance and Regulations: OPCs generally have fewer compliance requirements compared to Pvt Ltd companies, making them easier to manage from a regulatory standpoint. OPCs have relaxed reporting obligations and are exempted from certain requirements applicable to Pvt Ltd companies.

In summary, OPCs are suitable for small businesses with a single promoter who wants to enjoy the benefits of limited liability, while complying with lesser regulatory requirements. On the other hand, Pvt Ltd companies are better suited for larger businesses with multiple shareholders who require greater potential for growth and access to funds. Ultimately, the choice between OPC and Pvt Ltd company depends on the specific needs and goals of the business.

There is no specific turnover limit specified for One Person Companies (OPCs) in the Companies Act, 2013. The Act does not impose any restrictions on the turnover of OPCs. However, if the turnover exceeds INR 2 Crores in any financial year, then the OPC mandatorily needs to be converted into Private Limited Company or Public Limited Company.

There is no prescribed minimum capital requirement for incorporating a One Person Company (OPC) in India. Therefore, an OPC can be incorporated with any amount of capital that suits specific business needs. The sole owner is free to determine the authorized share capital based on the business requirements.

No, as per the provisions of the Companies Act, 2013, a One Person Company (OPC) can have only one director. The OPC structure is specifically designed for single entrepreneurs who wish to operate as a company with limited liability. The concept allows a single individual to be the sole shareholder as well as the sole director of the OPC.

However, in addition to the sole director, an OPC is required to have a nominee director mentioned in the Memorandum of Association (MOA). The nominee director is appointed to take over the management of the OPC in case the sole director becomes incapacitated or unable to perform their duties.

So, while an OPC can have two individuals involved in the company—the sole director and the nominee director—only the sole director has the authority to manage the company’s operations and make decisions on behalf of the OPC.

One Person Company has following features:

1. Sole owner and Sole Director : An OPC is a type of company that can have a single shareholder who will also act as the sole director of the company. This allows individuals to start a company on their own without the need for partners or co-founders.
2. Separate Legal Entity: An OPC has distinct identity from its shareholder or sole owner, which signifies that it  is capable of owning assets, entering into contracts, and incurring liabilities in its own name.
3. Limited Liability: The Liability of the sole owner is limited to the amount of their subscribed capital which denotes that personal assets are protected in case of business related liabilities.
4. No minimum capital requirement: OPC has no minimum capital requirement, which means that it can be registered with any amount of capital that suits the business requirements.
5. Perpetual Succession:The existence of OPC is not affected by the death or incapacity of its member as it can continue to operate and fulfill its obligations even after the demise of the member, with the nominee director taking charge.
6. Name of the Company: The name of the One Person Company shall mandatorily have the word (OPC) Private Limited as its suffix.

Thus, OPCs provide benefits to entrepreneurs who wish to operate as a separate legal entity with limited liability, while having the flexibility of a single-member structure.

Yes, it is mandatory to appoint a nominee for a One Person Company (OPC) in India. The requirement for appointing a nominee is a key feature of the OPC structure as per the Companies Act, 2013 and the details of the person nominated are also filed in the Memorandum of Association of the Company.

However, The nominee director’s role becomes active only upon the death or incapacity of the sole member. In normal circumstances, the sole member retains full control and management authority over the OPC.

No, a minor cannot become a member or nominee of an OPC. Also, a minor cannot hold shares in beneficial interest in OPC.

Registering an OPC is similar to incorporation of an OPC.

The registration process involves following steps:

(i) obtaining DSC; 

(ii) Reserve Unique Name (RUN); 

(iii) Preparation of MOA and AOA of the company; 

(iv) Filing of Incorporation documents; 

(v) Consent and declarations from Nominee; 

(vi) Payment of statutory government fee and 

(vii) Receiving Certificate of Incorporation on registered email address.

Yes, audit is compulsory for OPC. The financial statements of an OPC is required to be audited by a qualified Chartered Accountant regardless of its turnover or business activities.

The time taken for incorporating a One Person Company (OPC) can vary depending on several factors, including the preparedness of the required documents, government processing time, and any potential delays in the approval process. 

Generally, the OPC incorporation process can be completed within 10-12 working days, provided that all the necessary documents and information submitted is  accurate.

The following documents are required for OPC incorporation:

1. Identity, address proof and passport size photograph of Sole owner and Director;
2. Identity, address proof and passport size photograph of Nominee;
3. Registered Office documents – Rent Agreement/Sale Deed/Lease Deed; No objection Certificate (if premises are rented) and utility bill (not older than two months),