One Person Company (OPC) allows a single Entrepreneur to operate a corporate entity with limited liability protection with InsiderBiz. Register a OPC online at just Rs.8899 Fee.

OPC Registration Process

Before exploring the concept of a one person company, let us have a brief understanding of the various types of companies that can be formed. A company can be established for a lawful purpose by the following number of persons:

Seven or more persons, in case of a public limited company.

Two or more persons, in case of a private limited company.

One person, in case of a one-person company.

OPC Requirements

Unlike a private limited company, a one person company has certain restrictions associated with its incorporation. Hence, before starting an OPC registration, its essential to understand the constraints and ensure the promoter is eligible as per the Companies Act to register a OPC.

1. Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
2. Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
3. Legal entities like Company or LLP cannot incorporate a OPC.
4. The minimum authorised capital is Rs 1,00,000.
5. A nominee must be appointed by the promoter during incorporation.
6. Businesses involved in financial activities cannot be incorporated as a OPC.
7. OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.

Thus, a one-person company can be formed by an Indian citizen who has his/her presence in India for at least 182 days during the immediately preceding calendar year. A person can incorporate not more than one OPC. Finally, an OPC is prohibited from having a minor as its member.