One Person Company (OPC)



What is One Person Company (OPC)?

One Person Company (OPC) is a Company which has a separate existence, but is owned by a single member. One Person Company is a blend of Sole-Proprietorship and Company form of business. The concept brought in extravagant possibilities for sole proprietors and individual entrepreneurs who can take the advantages of Limited liability and corporatization. One Person Company OPC is a Company which has a separate existence, but is owned by a single member.

Difference between One Person Company(OPC) and Private Limited Company

One Person Company (OPC) Private Limited Company
Have to suffix OPC Private Limited Have to suffix Private Limited
Mandatorily convert into Private Limited/ Public Limited within 6 months if:
   a. Turnover exceeds Rs. 2 Crores;
   b. Paid-up capital exceeds Rs. 50 Lakhs
No such requirement
Raising funds in OPC is quite difficult Raising funds is comparatively easier
There is only 1 director in case of OPC Minimum requirement of 2 directors
There is 100% ownership in OPC The ownership is divided between 2 members.
Minimum requirement of 2 board meetings in a financial year with gap of not less than 90 days between 2 board meetings. Minimum requirement of 4 board meetings in a financial year with gap of not less than 120 days between 2 board meetings.

F.A.Q

Minimum one director is required to incorporate an OPC.
There is no minimum capital requirement in an OPC.
Maximum Capital required is Rs. 50 Lakhs. If the capital exceeds Rs. 50 Lakhs, OPC is required to mandatorily convert itself into private limited company or public limited company.
An OPC is mandatorily converted into Private Limited Company or Public Limited Company in the following cases:
     • Turnover exceeds Rs. 2 Crores; or
     • Paid-up Capital exceeds Rs. 50 Lakhs
An OPC can voluntarily convert itself into Private Limited Company or Public Limited Company only after 2 years of incorporation.
As per Companies Act, 2013 only the following persons can be a nominee in OPC:
     • Natural Person who has attained majority
     • Resident of India
No, FDI is not allowed in OPC.
No, one does need not be present physically as the whole process is online.
Only a person who is an Indian Citizen can incorporate an OPC. Hence, NRI cannot register an OPC.
The sole director and shareholder while incorporating a one person company must file the written consent of nominee in the prescribed form to the MCA. The nominee must be a major, Indian citizen and Indian resident. A minor cannot beocme a member or nominee of a one person company or be able to acquire shares in another one person company.