One Person Company


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The One Person Company (commonly known as OPC) means a company formed with only one (single) person as a member, unlike the traditional manner of having at least two members. It allows a sole person to own and also manage the entire business operations. An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company. These companies get all the benefits of a private company such as they have access to credits, bank loans, limited liability, legal protection, etc. The concept of One Person Company is not alien to the world. Through the years, this concept has been legally recognized in the India (2013), UK (2006), USA (Limited Liability Company in US), Turkey (2012), UAE, Pakistan (2003), China (2005), Singapore (2004).

 

One Person Company was introduced in India through Companies Act 2013, a new concept which brought a great relief for many Entrepreneurs. As per rule 3(1) of the Companies (Incorporation) Rules 2014, only a natural person who is an Indian Citizen and resident in India shall be eligible to Incorporate an OPC. Indian resident means who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year. One Person Company registration protects small entrepreneurs from the disadvantages of sole proprietorship and secures them with the status of a company. Companies Act has provided certain privileges and exemptions to One Person Companies that Private Companies or Public Companies do not possess.

PAN Card

Self attested PAN Card issued by I.T. Department

Aadhar Card

Self attested Aadhar Card issued by UIDAI

Id Proof

Self attested id proof (Voter ID/DL/Passport)

Address Proof

One month bank statement or telephone bill

Photograph

A latest passport-size colour photographs

Utility Bill

Latest electricity bill with NOC

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Benefits of One Person Company (OPC)

Separate Legal Entity

One Person Company (OPC) is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not the same as the assets and liabilities of the directors both are counted as different.

Limited Liability

One Person Company gives the advantage of limited liability to member whereby the liability of the member will be limited to the unpaid subscription money. This benefit is not available in case of proprietorship.

Lesser Compliance

As per the Act, an OPC must comply with all the compliance requirements of a Pvt Ltd Comp. However, the government has provided many compliance-related exemptions to OPCs, making it easier for OPCs to manage their business.

Perpetual Succession

The existence of a One Person Company (OPC) is not dependent upon its members and hence, it has a perpetual succession i.e., death of a member does not affect the existence of the company.

Easy to Get Loan from Banks

An OPC is preferred by banks or financial institution for loans in compared to a general partnership or sole proprietorship, this is because it has the structure of a company ensures that the bank doesn’t suffer losses in any scenario.


Documents required

PAN Card

Self attested PAN Card issued by I.T. Department

Aadhar Card

Self attested Aadhar Card issued by UIDAI

Id Proof

Self attested id proof (Voter ID/DL/Passport)

Address Proof

One month bank statement or telephone bill

Photograph

A latest passport-size colour photographs

Utility Bill

Latest electricity bill with NOC

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