One Person Company (OPC)
A One Person Company (OPC) combines most of the benefits of a Sole Proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a Director as well as a Shareholders.
A One Person Company, or OPC, is a type of “Privately Held Independent Legal Business Entity” similar to a Private Limited Company which limits the liability of the owner up to the extent of the shares he / she has subscribed. It means that the liability of the shareholder to Creditors or Lenders of the company is limited to the capital originally invested.
The Minimum & the Maximum number of members (Shareholders) required to form an OPC Pvt. Ltd. company is 1.
Thus, an OPC has one shareholder who is also the director. Further, as there is only one shareholder / director, there is a ‘nominee’ director who is nominated by the shareholder / director to step in, in the event the shareholder / director is unable to carry on their functions.
Documents & Details Required for OPC Registration
- KYC (Identity and Address Proof)
- Email ID and Contact Details
- Business Address Proof (Electric Bill, Telephone Bill, Water Bill) [If premises on rented then need Rent Agreement also]
- Nominees Details with KYC
Frequently Asked Questions
Can a Foreign National form an OPC?
No. Only an Indian Citizen and Resident can form a One Person Company.
Is there a restriction in setting up OPC?
Yes. An individual can start only one OPC.
Who can start an OPC?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.