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    Meaning of One Person Company (OPC)

    A One Person Company (OPC) is a business entity that has only one individual as its sole member and shareholder. It is a unique type of company structure under the Companies Act, 2013, designed to provide the benefits of a corporate structure while being operated by a single person. OPC offers limited liability protection to the sole member while allowing them full control over the business operations, making it an ideal choice for solo entrepreneurs.

    Key Features of OPC

    1. Single Member: An OPC is owned by a single individual, who is the sole shareholder and director of the company.
    2. Limited Liability: The liability of the member is limited to the amount of their investment in the OPC, protecting personal assets from business liabilities.
    3. Separate Legal Entity: The OPC has its own legal identity, separate from its owner, which allows it to own property, enter contracts, and conduct business.
    4. Perpetual Succession: The company continues to exist even if the sole member passes away or becomes incapacitated. The nominee specified during incorporation takes over the company.
    5. No Minimum Capital Requirement: There is no mandatory minimum capital requirement for starting an OPC.
    6. No Maximum Number of Shareholders: OPC is restricted to one member, so no additional shareholders can be added.

    Benefits of OPC

    1. Limited Liability: The owner’s personal assets are protected, and liability is limited to the amount of investment in the company.
    2. Full Control: As the sole member, the owner has complete control over business decisions and operations.
    3. Ease of Incorporation: OPCs are easier and quicker to set up compared to traditional companies, with less paperwork and compliance requirements.
    4. Tax Benefits: OPCs can enjoy tax deductions for directors’ remuneration and other business-related expenses, reducing taxable income.
    5. Enhanced Credibility: OPCs are recognized as separate legal entities, which can enhance the company’s credibility and reputation.
    6. No Minimum Paid-Up Capital: You can start an OPC with a minimal investment, offering flexibility for new entrepreneurs.
    7. Independent Existence: OPCs have a separate legal status, which means they can independently enter into contracts, own assets, and take on liabilities.

    Documents Required for OPC Registration

    1. Identity Proof of the Director:
      • PAN Card or Passport
      • Voter ID, Aadhar Card, or Driving License (self-attested)
    2. Address Proof of the Director:
      • Utility Bills (Bank statement, electricity bill, etc., not older than 2 months)
    3. Passport Size Photos:
      • 2 passport-sized colored photographs of the member and director
    4. Business Address Proof:
      • NOC from the property owner
      • Lease agreement/ownership proof
      • Utility Bill (Electricity, mobile bill, etc., not older than 2 months)
    5. PAN Card of the Member/Director:
      • Self-attested PAN card copy of the sole member/director
    6. Consent for Nominee:
      • Consent of the nominee in the prescribed form (INC-3)
    7. MOA and AOA:
      • Memorandum of Association (MOA) and Articles of Association (AOA) for the OPC, which should be filed electronically.

    Knowledge Base

    The owner’s liability is limited to the amount invested in the company, and personal assets are protected.

    An OPC can only have one member. However, a nominee must be appointed during incorporation to take over in case of the member’s death or incapacity.

    No, an individual can only form one OPC as a member. They cannot become a member of another OPC.

    No, there is no minimum paid-up capital requirement for starting an OPC. However, the authorized capital can be as low as ₹1 lakh.

    The key benefits include limited liability, full control by the owner, ease of setup, tax advantages, and independent legal status.

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