Section 2 (62) of the Companies Act, 2013 defines “One Person Company means a company which has only one person as a member. The One Person Company is an advancement of sole proprietorship form of business. There is only one person who acts as a promoter and director who have full control over the company. It is registered under the provision of the Ministry of Corporate Affairs (MCA).

Eligibility/Requirements for registering One Person Company

· Only a natural person who is an Indian Citizen whether a resident of India or not is eligible. So NRI’s are also eligible to incorporate OPC’s.

· Any company or LLP or business with financial activities cannot register an OPC.

· A natural person shall not be a member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company

· Nominee (a natural person who is an Indian Citizen whether a resident of India or not) must be appointed during registration.

Documents required for registering a One Person Company.

1. Proof of identity of the shareholder. Such documents include a Passport /Driving license / Voter   ID Card.

2. Proof of address of the shareholder. Such documents include bank statements /electricity bill /gas bill/telephone bill.

3. Memorandum of Association (MOA) and Articles of association (AOA).

4. Passport   size photograph of Shareholder

5. Consent   of the Nominee of the OPC in INC 3

6.No Objection Certificate from the owner of the Address to be used as a Registered Office address.

7. In the case of leased property, the copy of lease deed and copy of Electricity bill / Water bill / Gas Bill / Telephone Bill for registered office property.

8. In case of owned property, copy of sale deed and copy of  Electricity bill / Water bill /Gas Bill / Telephone Bill for registered office property.    

Advantages of One Person Company

· Less compliances to be maintained.

· Status of separate legal entity.

· Perpetual existence.

· Great opportunity for small business to expand.

· Having contractual rights.

· Full Control over the Company with a Single Owner

· Easy to raise funds and loans

· NRI’s can also incorporate OPC

· OPC can be converted into Private Limited Company / Public Limited Company by following the provision of Companies (Incorporation) Rules, 2014 and Private Limited Company can be converted into OPC by following the provision of Companies (Incorporation) Rules without meeting any of the criteria’s as to paid-up share capital beyond 50 lakh rupees and average annual turnover during the relevant period exceeds 2 crores.

· The requirement of compulsory conversion on exceeding the specified turnover or paid-up capital is done away with and now the One Person Company can grow without any restriction.

Drawbacks of One Person Company

· A foreign national, minor, or any corporate entity cannot participate in One Person Company.

· OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates. So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

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