What is a One Person Company (OPC)?

A One Person Company (OPC) is a business entity introduced under the Companies Act, 2013, where a single individual holds both the ownership and the management of the company. The OPC combines the benefits of a sole proprietorship and a corporation. The individual has limited liability, which means that personal assets are protected in case the company faces legal or financial challenges.

Key Features of an OPC:

• Owned and managed by a single person.
• Limited liability – the owner’s personal assets are separate from the company’s liabilities.
• Mandatory to appoint one director and one nominee.
• An OPC must have a minimum capital requirement (though it’s generally quite low).
• Must file annual financial statements and returns with the Ministry of Corporate Affairs (MCA).

How to Set Up a One Person Company (OPC) in India: Quick Steps

1. Choose a Business Name: Pick a unique name that complies with MCA guidelines and check its availability.
2. Get a Digital Signature Certificate (DSC): Required for signing documents online.
3. Obtain Director Identification Number (DIN): Apply for DIN for the company’s director.
4. Draft MOA & AOA: Prepare the Memorandum and Articles of Association as per legal requirements.
5. Register with MCA: Submit documents via SPICe+ form and obtain the Certificate of Incorporation.
6. Apply for PAN and TAN: Necessary for tax filing and compliance.
7. Open a Business Bank Account: Open an account with the required documents.
8. Maintain Books of Accounts: Keep financial records and file annual returns.