CS Kanika Goel

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Article Discusses Meaning of One Person Company (OPC), Benefits of OPC over sole proprietorship, Maximum Time Taken to incorporate OPC, Documents Required to incorporate OPC, Minimum Person Required to form an OPC, Restriction for running the OPC and Steps involved in OPC Formation in brief.

MeaningRevolutionary new concept of “one man army” introduced under the Companies Act, 2013.

One Director: One Shareholder concept

Benefits over sole proprietorship

1. No need of profit sharing. Profit will belong to only you.

2. Minimum compliances and paper work

3. Convertible to other form of business if required (not before 2 years voluntarily except exceeds capital/turnover limit)

4. Corporate form of sole proprietorship

5. Separate legal entity & limited liability

6. Ease of procuring finance-credit record of OPC considered.(prudentadviso@gmail.com)

7. Risks mitigated are limited to the extent of the value of shares held by such person in the company; enabling entrepreneurial minded persons to take the risks of doing business without the botheration of litigations and liabilities getting attached to the personal assets.

Maximum Time Taken to incorporate OPC15 Days depending upon processing of documents
Documents Required

1. KYC of member (PAN, ADHAR/passport, Photo)

2. Utility bill of proposed registered office address of OPC

3. In case of rented premises, NOC from landlord and rent agreement

Minimum Person Required:1
ProcessProposed Name of OPC, Decide Share Capital.

1. Obtain DSC, DIN

2. Name availability

3. Nominee to the person for becoming owner of the company after the existing person and the nominee consent form

4. MOA & AOA

5. Filing incorporation

6. COI

Restriction for running the OPC1. Cap of 50 lacs on paid up share capital or 2 crores on average annual turnover in three immediate preceeding consecutive years (i.e. mandatory conversion if the aforesaid limit exceeds)

2. Minor not allowed to become member or nominee

Numerous exemptions available to OPC in the Companies Act 2013. OPC is a boon to small entrepreneurs as they get a corporate identity with least compliance. Want corporate recognition? Get an expert assistance at prudentadviso@gmail.com / 9873564091

Posted Under

Category : Company Law (2996)
Type : Articles (10788)
Tags : Companies Act (1523) Companies Act 2013 (1277) OPC (31)
  • ankit jaiswal

    Well written ..thanks for sharing.

  • ankit jaiswal

    Well written ..thanks for sharing.