Incorporation of One Person Company (OPC)
Registration
Compliance & Operations
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According to Section 2 (62) of the Company’s Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliance requirements than that of a Private Limited Company.”
Entity Comparison Guide
| TYPE | PROPRIETORSHIP | PARTNERSHIP | LLP | Private Limited Company | OPC |
| Members | Maximum 1 | 2-20 | 2- Unlimited | 2-200 | 1 |
| Legal Status of Entity | Not Considered as separate Legal entity | Not Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity |
| Members Liability | Unlimited Liability | Unlimited Liability | Liability of its members is limited | Limited to the extent of share capital | Limited to the extent of share capital |
| Registration | Not Compulsory | Optional/ Can be Registered under partnership Act 1932 | Registered Under MCA | Registered Under MCA | Registered Under MCA and Companies Act 2013 |
| Transferability Option | Not Allowed | Not Allowed | Can Be Transferred | Can Be Transferred | Allowed to only one person |
| Taxation | As in Individual | 30% of Company Profit | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable |
| Annual Filings | Income Tax Returns with the Registrar of companies | Income Tax Returns with the Registrar of companies | Filed with the registrar of the company | Filed with the registrar of the company | Filed with the registrar of the company |
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Explore Incorporation of One Person Company (OPC)
What is a OPC company?
One Person Company in India is a new concept that has been introduced with the Company’s Act 2013. An OPC is owned and managed by a single person, it combines the advantages of a sole proprietorship with those of a company.
What are the benefits of OPC Company?
OPCs are easy to set up and manage, require minimal maintenance, and can offer better operational control and taxation benefits. With the ease of registration and low cost of operation, OPCs are the ideal way for small businesses to get started.
What is the Director Identification Number?
It is the Unique Identification Number that is assigned to all existing and proposed Directors of a Company. All proposed Directors must have Director Identification Number. The DIN never expires and a person can have only one DIN.
Is audit compulsory for OPC?
For an OPC statutory audit is mandatory. A company needs to appoint a Chartered Accountant (CA) as the auditor of the Company. The auditor needs to verify the books of accounts and issue a Statutory Audit report.
Can OPC raise funds?
An OPC can raise funds through venture capital, financial institutions. An OPC can also raise funds by converting into a Private Limited Company.
What is the difference between sole proprietorship and OPC?
In One Person Company, a single person runs a company limited by shares whereas a Sole Proprietorship means an entity that is run by one individual, and the owner and business are considered as the same entity.
Is it necessary for the OPCs to conduct an annual general meeting?
No, OPC are exempted from conducting annual general meeting.