One Person Company (OPC) — Benefits, Features and Required Documents for Registration

FinacBooks
Nov 6 · 3 min read

One Person Company or OPC is a business entity having unique idea where a single person can get the entire legal authority to run the business with limited liability protection. The idea of OPC was introduced to India through the companies ACT, 2013. One person company can only be formed with someone who is a citizen and resident of India. The company can be formed with only one director and one promoter. Here director and promoter could be the same person.

Registering your One Person Company could offer you a bunch of benefits, like:

· Offers legal protection to the members of the company with LLP

· One Person Company is a separate legal entity

· In case any unwanted situation will arise anytime, like death or change of owner the existence of the company will never get uninterrupted

· OPC registered business could achieve high brand value with less business risk

· Registered OPC can achieve easy to get loan facility

· In OPC money can be borrowed from lenders

· While comparing with other business entity OPC requires less paperwork

Important features of One Person Company (OPC):

Below are some significant features of One Person Company

· Minimum accredited share capital for any one person company is Rupees 1 Lakh

· Maximum and minimum number of members for any OPC is only one

· A minor can’t be the member or nominee of a One Person Company

· One Person Company might be formed either as a company limited by shares or limited by guarantee or by unlimited liability

· The sole member of the company needs to declare a nominee at the time of registering the company

· No perpetual succession concept works in OPC. Death of the member will result in choosing or rejecting the nominee to become the sole member

· There is no minimum paid-up for One Person Company

· OPC enjoys several privileges and indemnities under the companies ACT that other types of companies do not offer

The registration process requires submission of few documents. In India registering any OPC requires submitting the below documents:

· Scanned copy of Passport sized photograph of the director

· Self attested and scanned copy of the Voter’s ID card and driving license

· PAN card is a mandatory required document for the registration process. PAN card copy of the proposed director of the company director is required to submit

· Self attested and scanned copy of the passport

· Valid address proof — For registering one person company the director must submit the valid address proof. It’s quite important to appear the name of the director on the address proof exactly same as written on the PAN card.

Below documents can be submitted as valid address proof:

· Passport

· Voter’s ID card

· Driving License

· Ration card

· Electricity Bill

· Telephone Bill

· Aadhaar Card

Proof for Residence: Residential proof is also required to submit. Below documents can be submitted –

· Electricity Bill

· Telephone Bill

· Bank Statement

FinacBooks is a reputed name in offering professional services on accounting, financial and taxation services for small businesses and freelancers. Contact us for an inexpensive and quality service on OPC registration process in India.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade