What is One Person Company (OPC) Registration

What is One Person Company (OPC) Registration

The One Person Company (OPC) in recent times was launched as a good refinement over the sole proprietorship. In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC has an average hattrick turnover of Rs. 2 crores and over or acquires a paid-up fund of Rs. 50 lakh and over, it has to be converted to a private limited company or public limited company within six months.

Mandatory Documents Necessary for OPC Registration

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TO BE GIVEN BY ONE PERSON COMPANY DIRECTOR

• Scanned transcript of Passport (Foreign Nationals & NRIs) or PAN Card
• Scanned transcript of Passport, Voter’s ID or Driver's License
• Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Electricity or Gas Invoice
• Scanned passport-sized photo
• Specimen autograph or impression (blank document with autograph)

Note: The OPC director as a mandate should self-attest the first three documents. If an NRI or a foreign national, all the document sheets should be notarized without fail (if at present in India or a non-Commonwealth nation) or apostilled (that is, living in a Commonwealth country).




DOCUMENTS NECESSARY FOR THE REGISTERED OFFICE

• Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or Electricity Invoice)
• Scanned transcript of Rental Agreement written in the English language
• Scanned transcript of N-O or No-objection Certificate from the concerned property landowner
• Scanned transcript of Property or Sale Deed printed in English (if the property is owned)

Note: Your office space which is registered needs to be a commercial area; however, it can be your house of residence as well.

Benefits of OPC Registration

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Limited Liability

The directors' personal property is always safe in a private limited company, no matter the debts of the business.

Continuous Existence

Sole Proprietorships come to an end with the death of the proprietor. As an OPC has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.

Greater Credibility

As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.