A One Person Company is a company that has only one person as a member. OPC was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. An OPC is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.

As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and start-ups.

OPC is a company that can be formed with 1 Director and a Member as against a private limited company. OPC provides better opportunities with minimal compliance.

One Person Can Start The Business

Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.

• Complete Control By The Individual

The control remains in the hand of one person only.

• Limited Liability

In case of One Person Company, the member of OPC has limited liability.

• Separate Legal Entity From Its Member

Being a company, OPC has a separate legal existence from its member.

• Easy Compliance And Tax Flexibility

An individual has to follow easy compliance and avails the benefit of tax availability too.

• Benefits For Small Scale Industries

OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.

• A natural person can form OPC who is a resident of India in the preceding calendar year.
• Only 1 member can form an OPC.
• The Name should be unique and should not be similar to any other existing company and trademark.
• An individual cannot incorporate more than 1 OPC or
• An individual cannot be the nominee of more than 1 OPC.
• There must be a least 1 director.
• In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
• One Person Company must include in its name (OPC) Private Limited.
• Pre-condition to indicate the name of the other individual as a nominee.
• As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

Below-mentioned documents are required for OPC Registration:-

For DSC Application

• Passport size photo of the applicant.
• Copy of Id and Address Proof.
• Email Id and Phone number.
• Specimen Signature.

Documents Required For SPICe+ Form

• Identity proof
• Address proof & Identity proof and of the nominee and the subscriber.
  Note- For Residential proof, the applicant can provide any of the following documents:-
  > Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
  > Copy of Rent agreement and No-objection Certificate from the property owner.
  > If the property is owned-Copy of the sale deed.
• Memorandum of Association and Articles of Association
• Declaration by the Subscribers and Directors
• Proof of Office Address
• Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
• Nominee’s Consent in Form INC-3
• Disclosure of Director’s Interest and any other document (if required).

Documents Required For AGILE-PRO

• Proof of Principal Place of Business.
• Documents related to the appointment of Authorized Signatory for GST Registration.
• For Bank account opening, a copy of the Resolution passed by the Board of Directors along with their Id and address proof.
• For the opening of ESIC, Id Proof, Address proof, and Signature of Authorized Signatory.
• Other credentials- ITR Returns, annual filings, etc.

For OPC Registration, An Applicant Shall Follow The Requisite Steps :

Step-1- To Get A DSC

For registration, it is required for the applicant to get a Digital Signature Certificate (DSC) issued by the Certifying Authority.

Step-2- Reservation Of Name Through SPICe+ FORM (Part A)

For Name reservation, click on the ‘SPICe+’ Form placed under ‘MCA Services’ The name reservation is done through the SPICE+ form that includes all the steps right from the Name Reservation to post-incorporation compliances.

The applicant has to enter the name he/she wants to reserve, for the incorporation of an OPC. After that, submit the ‘Part A’ for reservation of name and incorporate formalities.

Step 3-Downloading SPICE+ Part B For Incorporation Purpose

The very next step is to download the Part B in PDF format for filling the related forms, which are as follows:-

• AGILE-PRO,

• SPICe+AoA,

• SPICe+MoA,

• INC-9 and URC-1) and for affixing the “DSC,”

SPICe+ Part B Includes The Services Like: –

• Incorporation

• DIN allotment

• Issue of PAN and TAN

• Issue of EPFO registration and ESIC registration.

• Issue of Profession Tax registration (Maharashtra)

• Particulars of Opening the Bank Account for the Company,

• Allotment of GSTIN.

Step 4- Uploading Part B On The MCA Portal

After filing all the requisite details along with the documents, the next step is to submit SPICE+B on the MCA portal. Once SPICe+ Part B is submitted, other forms (AGILE-PRO, SPICe+ AOA, and SPICe+ MOA) will also become available.

Also, INC-9 will be auto-generated based on the information filled in SPICe+ Part B. After successful submission of these forms, these can be downloaded, and DSC can be affixed in the respective form. Lastly, the above forms can be uploaded in the below-mentioned sequence- SPICe+ Part B , SPICe+ MOA, SPICe+ AOA, AGILE-PRO, INC-9.

Step 5-Pre-Scrutiny Check

After uploading the form, the next step is to go for a ‘Pre-scrutiny’ check. After pre-scrutiny, the applicant must click on the Confirmation button for the successful submission of the Application form.

Step 6-Payment Of The Requisite Fees

After a successful pre-scrutiny check, a Service Request Number will be generated for making a payment of a requisite fee for “OPC incorporation.”

Step-7-Obtaining COI From The Registrar

The registrar will issue a Certificate of Incorporation if the registrar finds the information along with the documents is appropriate.

• No minor shall become a member or nominee of the One Person Company.
• No minor can hold a share with beneficial interest.
• OPC cannot perform voluntary conversion before the completion of 2 years from the date of incorporation of OPC.
• It cannot be incorporated or converted into a company under section 8 of the Act.
• It cannot perform Non-Banking Financial Investment activities.