The concept of OPC was introduced by MCA in 2013 to support individual company owners. Entrepreneurs who are capable to manage their company single-handedly can take the advantage of corporate laws. Just like other companies an OPC will be considered as a separate legal entity and will offer limited liability protection to its only shareholder.
To register a One Person Company (OPC) only 1 owner is required, the owner can act as both the shareholder as well as a director of the company. The company will be allowed to have more than 1 director, but it is not allowed to have more than 1 shareholder.
What is One Person Company (OPC) Registration?
If a company is registered as an OPC, a single owner will gain complete authority over the company. This as a result will restrict his/her liability towards the contributions to the enterprise. Therefore,the owner will be declared as the sole director and shareholder (please note, a director nominee will be present the entire time, but he/she will have zero power until the real director will be proved as incapable of managing the firm).
Mandatory Documents Required For One Person Company Registration
To Be Given By One Person Company Director
Scanned transcript of Passport (Foreign Nationals & NRIs) or PAN Card
Scanned passport-sized photo
Scanned transcript of Passport, Voter’s ID or Driver’s License
Specimen autograph or impression (blank document with autograph)
Scanned transcript of Current Bank Account Statement
Scanned Transcript of Phone or Mobile Invoice/Electricity or Gas Invoice
Documents Necessary For The Registered Ofiice
Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or Electricity Invoice)
Scanned transcript of Property or Sale Deed printed in English (if the property is owned)
Scanned transcript of Rental Agreement written in the English language
Scanned transcript of N-0 or No-objection Certificate from the concerned property landowner
Benefits of OPC Registration
Limited Liability
The directors’ personal property will always be safe in a registered OPC company, the debts of the business can’t have any effect on the personal assets of the owner.
Continuous Existence
Sole Proprietorships most of the times dies with the death of the proprietor. An OPC company will always have a separate legal identity. Hence; the company will pass on to the registered nominee director and, therefore existence of the company wont be harmed.
Greater Credibility
As an OPC will be a registered company and it will have its books audited annually, so it will increase the credibility among lending institutions and vendors.