A One Person Company is a corporate structure that enables a single individual to establish and manage a company while enjoying limited liability and a distinct legal identity.
Key benefits include:
- The owner’s liability is limited to the amount they’ve invested in the company.
- The company is recognized as a separate legal entity
- Option to raise capital through issuance of shares
- Improved market reputation and trust
- Easier compliance than other company types
Any Indian citizen can register an OPC, provided they hold a valid PAN card and fulfill the prescribed eligibility conditions. Note: Minors cannot form an OPC.
Common documents include:
- PAN card of the sole owner
- Address proof (residential) of the owner
- Identity proof (such as Aadhaar, Passport, etc.)
- Digital Signature Certificate (DSC) of the owner
- Memorandum of Association (MoA) and Articles of Association (AoA)
Starting a One Person Company (OPC) does not require a minimum paid-up capital
Yes, an OPC can be converted into another type of company, such as a Private Limited Company, by following the applicable legal procedures.
OPCs are treated as separate taxable entities. The company pays corporate tax on its income.
Essential compliance tasks include:
- Filing annual returns with the Registrar
- Conducting an Annual General Meeting (if applicable)
- Maintaining statutory registers and records
- Adhering to income tax and other regulatory laws etc
Yes, the sole owner must designate a nominee who will assume ownership of the company in the event of the owner’s death or incapacitation.