To encourage unorganized proprietorship business to enter into organized corporate world, the concept of “One Person Company” was recommended by JJ Irani Committee. The One Person Company is an advancement of sole proprietorship form of business.
There’s is only one person who acts as a member and a minimum of one director who is having full control over the company. It is registered under the regulations of Ministry of Corporate Affairs (MCA).OPC shall be mentioned in brackets below the name of such company, e.g. XYZ (OPC) Private Limited.
To understand one person company definition, we first need to get into the identity it creates. A registration provides corporate status and many benefits to the members and directors. In the case of a Private company, at least two members are required which is not the same in the case of OPC. To eliminate this drawback and allow a single person to reap the advantages of One Person Company, this sort of a company structure is introduced through the Companies Act, 2013. One Person Company registration is simplified with online filing and process.
One Person Company feature is such that it has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. One person company is a type of Private Limited Company.
Naming Criteria of a One Person Company
Eligibility for registering a One Person Company
Minimum requirements of an OPC
Maximum requirements of an OPC
Following documents of the Proposed Director/Nominee is required:
Also some other notable points are :-
Following compliances are not required to be done by an OPC related to meetings & other compliances:-