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One person company registration

One Person Company Registration (Complete Guide)

The new concept of One Person Company (OPC) was introduced in the Companies Act 2013. A private company requires a minimum of two directors and two members, while a public company requires a minimum of three directors and a minimum of seven members. Let’s know more about one person company registration.

A One Person Company (OPC) is a legal entity formed by one person. Before the Companies Act 2013 came into force, a company could not be established by a single person. If an individual wanted to start a business, only sole proprietorships were the only option, as it required at least two directors and two members to form a legal entity.

How much does it cost to register a one person company in India?

How Do I Set up a Business for One Person

You can easily setup a business for one person. Here are the steps to follow:

  1. Apply for DSC (Digital Signature Certificate).
  2. Apply for DIN (Director Identification Number).
  3. Name approval application.
  4. Documents required.
  5. Filling/Approval of forms with MCA.
  6. The issue of the certificate of incorporation.

What Are the Disadvantages of One Person Company

There are a few disadvantages of a one-person company( OPC):

Only suitable for small businesses:

OPC is suitable for small company structures. The maximum number of members an OPC can have is always one. Additional members or shareholders cannot be added to OPC to raise further capital. Therefore, as our business expands and grows, we are unable to add more members.

Restrictions on business activities:

OPC may not engage in non-banking financial investment activities, including investments in company securities. Under Section 8 of the Companies Act 2013, it cannot be converted into a charity.

Ownership and management:

There is no clear separation between ownership and management as the sole shareholder can also be the administrator of the company. Only members can make and approve all decisions. It blurs the line between ownership and control and can lead to unethical business practices.

What Is the Minimum Capital Required for OPC

One person company (OPC) can be started with a minimum authorized capital of Rs. 1 lakh rupees. There is no compulsory minimum paid-up capital requirement.

Which Is Better OPC or LLP

Choosing a company type is one of the most important decisions before starting a company. This decision should be reviewed periodically as the business evolves. This issue discusses the differences between the two types of business units.

OPC is an independent company owned by one member. A person is a mixture of individual and corporate forms.

What Are the Benefits of One Person Company

There are many benefits to running One person company:

Easy to manage:

OPC can be set up and operated by one person, making business management easier. Decisions are easy and the decision-making process is quick. Ordinary and special resolutions are easily passed by members and signed by individual members. Therefore, there are no conflicts or delays within the company, and it is easy to operate and manage the company.

Perpetual succession:

OPC is characterized by the fact that even one member is inherited forever. Once the OPC is approved, individual members must nominate candidates. After the member’s death, the candidate will run the company in their place.

Legal status:

OPC receives its own legal entity status from its members. The OPC’s separate legal entity protects the individual who created the OPC. Member’s liability is limited to his shares and he is not personally liable for any loss to the company. therefore creditors can sue the OPC, not the members or directors.

Easy to obtain money:

Since OPC is a private company, it is easy to raise funds through venture capital, angel investors, and incubators. Banks and financial institutions prefer to lend to businesses over corporations. This makes it easier to receive funds.

Fewer compliances:

The Companies Act 2013 provides for certain exceptions to his OPC in relation to compliance. OPC is not required to produce a cash flow statement. The company secretary is not required to sign the books of accounts or annual reports and be signed only by the director. 

Easy incorporation:

Onboarding OPC is easy as the only member and nominee required for onboarding. A member can also be a director. The minimum authorized capital to raise an OPC is Rs.1 lakh, but there is no minimum paid-up capital requirement. Therefore, it is easier to set up than other legal forms.

What Are the Documents Required for One Person Company

You will need to prepare the following documents to be submitted to the ROC:

Memorandum of Association (MoA). It sets goals for the association to pursue and states the undertakings for which the association is formed.

  1. Our Articles of the Association (AoA) set out the Articles of Incorporation by which the company operate.
  2. As there is only one Director and Member, a nominee must be appointed to replace him. This is because the nominee will act on behalf of the director and act on his behalf. His consent on Form INC-3 will be recorded along with his PAN card and his Aadhar card.
  3. Proof of ownership and proof of the registered office of the proposed company in addition to the owner’s NOC.
  4. Proposed Director’s Statement and Approval on Form INC-9 or DIR-2.
  5. A declaration from an expert certifying that all compliances have been met.

Frequently Asked Questions (FAQs):

Can OPC have 2 directors?

One Person Company, which stipulates that under the Companies Act 2013, private companies are required to have two directors and members, while public companies are required to have three directors and seven members. (OPC) Amendments have been introduced.

Is OPC a Private Company?

Yes, OPC (One person company) is a private company.

Can one person run an entire company?

If you run One person company , you don’t need to hire and delegate a team to be successful.

OPC full form

OPC stands for One Person Company.


Now you got to know about One Person Company registration. A One Person Company in India is founded by one person. Before the Companies Act 2013 came into force, individuals could not set up companies. OPC has company characteristics and sole proprietorship advantages. In the past, if someone had to start a business, they had to choose only a sole proprietorship.

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