One Person Company

What is one person company?

The One Person Company (OPC) was recently introduced as a strong improvement over the sole Proprietorship. It gives a single promoter full control over the company while limiting his/her liability to contributions to the business. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). So there’s no chance of rising equity funding or offering employee stock options. Furthermore, if an OPC hits an average three-year turnover of over Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it must be turned into a private limited company or public limited company within six months.


Advantage of One Person Company:

  • 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.

Documents Required for LLP Registration

TO BE SUBMITTED BY PARTNERS

  1. Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  2. Scanned copy of Voter's ID/Passport/Driver's License/Aadhar
  3. Scanned copy of Latest Bank Statement/Telephone or Mobile, Electricity or Gas Bill
  4. Scanned passport-sized photograph
  5. Specimen signature (blank document with signature [directors only])

FOR THE REGISTRED OFFICE

  1. Scanned copy of Latest Bank Statement/Telephone or Mobile, Electricity or Gas Bill
  2. Scanned copy of Notarized Rental Agreement in English
  3. Scanned copy of No-objection Certificate from property owner
  4. Scanned copy of Sale Deed/Property Deed in English (in case of owned property)