ONE PERSON COMPANY(OPC)
As per provision of section 2(62) of the Companies Act, 2013 defined “one person company” means a company which has only one person as member. Any natural person (should not be minor) who is an Indian citizen whether a resident in India or not.
One person company (OPC) means a company formed with only one (single) person as a member, unlike the traditional manner of having at least two members. It is recognition of single person economic entity lightens a path for small traders, service providers to venture into business by expanding their opportunities through corporate identity.
Members and Directors
- The minimum and maximum number of members in an OPC can be only one. As per Section 152(1) of the Act, an individual being member of OPC is deemed as First Director of the OPC until the director(s) are duly appointed by the member.
- A person can be member in only one OPC.
- The minimum and maximum number of directors in an OPC can be one (1) and fifteen (15) respectively.
- In order to increase the number of directors beyond 15 directors, a special resolution must be passed by the OPC to that effect
Nominee in an OPC
An OPC must mention one person as ‘Nominee’ in the event of death, incapacity, etc. who will-
- become a member of OPC;
- be entitled to all shares of the OPC, and
- bear all liabilities of OPC.
However, written consent of such Nominee to act as nominee must be obtained and filed with the RoC at the time of incorporation along with MoA and AoA.
Benefits of One Person Company
One person company is corporatization of sole proprietorship, so it has all benefits will a corporate enjoys aside to this it has some relaxations in provision of company law. Following are some of benefits of One Person Company.
- It has separate legal entity.
- The liability of shareholder/ director is limited
- The organized version of OPC will open the avenues for more favorable banking facilities
- Legal status and social recognition for your business. It gives suppliers and customers a sense of confidence in business.
- The director and shareholder can be same person
- On the death/disability company can be succeed by nominee.
- Exemption available from various provisions under Company law.
Check list
Directors
- ID and Address Proof {Bank Statement/Electricity Bill/Telephone bill/ Mobile Bill (not later than 2 months) of Directors & Shareholders
- ID proof and Address Proof of the Promoters/Subscribers/Shareholders (PAN, Aadhar Card, Passport)
- Passport size pictures of Directors
- DSC of Directors and Shareholders
- Mobile No. and Email id of Directors
- Provide DIN if already have of Directors
Company
- Authorized Capital and the proportion of contribution by the Shareholders
- Detailed Objects of the Company
- Utility bill for registered office of the Company(Not older than 2 months)
- Proof of ownership along with NOC of the owner
Certificate of Incorporation
- When the eForm is processed and DIN is generated, an acknowledgement email of Certificate of Incorporation (CoI) is sent on email.
- Further, on approval of SPICe+ forms, the Certificate of Incorporation (CoI) is issued with PAN and TAN as allotted by the Income Tax Department.
- An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user.
Basic mandatory compliance for OPC
The basic mandatory compliance comprises:
- At least one Board Meeting in each half of the calendar year and the time gap between the two Board Meetings should not be less than 90 days.
- Maintenance of proper books of accounts.
- Statutory audit of Financial Statements.
- Filing of business income tax returns every year before 30th September. Filing of Financial Statements in Form AOC-4 and Annual Return in proposed Form MGT 7-A