Minimum Requirements
- Minimum One Director
- Minimum One Nominee
- No Minimum Capital required
- Digital Signature Certificate (DSC) of the Director
- The Director must be an Indian resident
Advantages of One Person Company (OPC)
- Limited Liability Protection – Personal assets remain safe in case of business losses.
- Separate Legal Entity – The OPC has its own legal identity, separate from the owner.
- Perpetual Existence – The company continues to exist even after the owner’s demise.
- Best Option for Sole Entrepreneurs – Ideal for single owners who want limited liability.
- Less Procedural Compliances – Fewer legal obligations compared to private limited companies.
Meaning of One Person Company
As per Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) is a corporate entity with a single shareholder. Unlike sole proprietorships, an OPC is a registered legal entity with limited liability, offering better credibility and access to financial resources.
An OPC serves as a hybrid between a sole proprietorship and a private limited company, making it a preferred choice for individual entrepreneurs looking for limited liability and ease of operations.
Why Register an OPC?
- Simplifies the process of starting a business with limited liability.
- Allows a single entrepreneur to enjoy the benefits of a company.
- No minimum capital requirement.
- Encourages startups and small business ventures.
Benefits of OPC Registration with Nayan Saluja & Company
1. Limited Liability
The liability of the shareholder is restricted to the amount invested in the business.
2. Independent Legal Existence
An OPC is a distinct legal entity, separate from its owner, providing greater business credibility.
3. Tax Advantages
- The owner can take a salary as a director.
- Rent, remuneration, and interest paid reduce taxable income.
4. Quick Decision-Making
Since an OPC is managed by a single individual, business decisions are made faster.
5. No Minimum Capital Requirement
You can start an OPC with as little as Rs. 2 capital.
6. Mandatory Audit Only in Specific Cases
Audit is required only if the capital contribution exceeds Rs. 25 lakhs or the annual turnover exceeds Rs. 40 lakhs.
Eligibility Criteria for OPC Incorporation
- Only one person can incorporate an OPC.
- The individual must be an Indian citizen and resident (stayed in India for at least 182 days in the previous year).
- The nominee must also be an Indian citizen and resident.
- A person can incorporate only one OPC at a time.
Important Provisions for OPC
- If an OPC’s paid-up capital exceeds Rs. 50 lakhs or its annual turnover surpasses Rs. 2 crores in three consecutive financial years, it must convert into a Private Limited Company.
- An OPC cannot engage in non-banking financial activities or investment in corporate securities.
- Voluntary conversion into a private company is allowed only after two years from incorporation unless the capital/turnover threshold is crossed.
Documents Required for OPC Registration
1. For Director & Nominee
- PAN Card (Self-attested copy)
- Identity Proof – Passport/Voter ID/Aadhaar Card/Driving License
- Address Proof – Bank Statement/Electricity Bill/Telephone Bill (not older than 2 months)
- Passport-size Photograph
2. For Registered Office
- Ownership Proof – Sale Deed or Property Papers
- NOC from the Owner
- Utility Bill – Electricity/Telephone Bill (not older than 2 months)
OPC Registration Process with Nayan Saluja & Company
Step 1: Digital Signature Certificate (DSC)
The director must obtain a Class 2 digital signature for online document submission.
Step 2: Name Reservation (SPICe+)
An application is filed with the Ministry of Corporate Affairs (MCA) to reserve the business name.
Step 3: Filing Incorporation Form (SPICe+ Part B)
The application for incorporation is submitted along with required documents such as:
- MOA (Memorandum of Association)
- AOA (Articles of Association)
- Identity and Address proofs
Step 4: Conversion of SPICe+ into PDF
The application is converted into PDF format for digital signature affixation.
Step 5: Filing of AGILE-PRO Form
This includes:
- Mandatory registration for EPFO & ESIC
- Opening a business bank account
- Optional GST registration
Step 6: Uploading Forms on MCA Portal
All digitally signed forms are uploaded to the MCA portal.
Step 7: Declaration by Director & Nominee (INC-9)
A digitally signed declaration confirming the authenticity of details is submitted.
Get Your OPC Registered Today!
Starting a One Person Company is a strategic decision for entrepreneurs looking for limited liability, tax benefits, and enhanced credibility. At Nayan Saluja & Company, we provide end-to-end assistance in OPC registration, ensuring a smooth and hassle-free process.
Contact Us Today! 📍 Nayan Saluja & Company – Chartered Accountants, New Delhi, India