One Person Company

What is One Person Company?

  • Introduced by Companies Act 2013 with effect from 01st April 2014
  • All provisions as applicable to Private Limited Company are also applicable to One Person Company in the same manner if act does not provide otherwise.
  • It is not a sole proprietorship

How is OPC different from Proprietorship?

  • It has separate status than it’s Director or Member or Nominee
  • It has Limited Liability. In case of liquidation, personal property of Director or member cannot be considered
  • It has to do annual compliances every year and few event based filing such as obtaining Loan
  • All above things are not found in case of proprietorship form of business

How is OPC different from normal Private Limited Company?

  • OPC can have only one member and only one director with paid up capital not more than Rs. 50.00 lakh and turnover not more than Rs. 2.00 Crore (It can cross limit but only after converting it to a normal private limited company). In case of Private Limited company, there is no such condition and number of members can be increased upto 200.
  • Private Limited Company had to convene an Annual General Meeting every year within 6 Months of end of financial year. In case of OPC, act does not impose such requirement.
  • The last date by which OPC can do the annual filing is 30th September of year. In case of private limited company, this date can be increased upto 29th
  • In case of OPC, the subscriber or member of OPC has to mandatorily appoint nominee. In case of Private Limited Company, no such requirement.

Conditions for Conversion of OPC into Private Limited Company?

    • Compulsory: OPC has to get it converted into Private Limited Company in case
      • OPC crosses it’s upper limit of paid up capital i.e. Rs. 2.00 Cr or OPC crosses it’s upper limit of Turnover i.e. Rs. 20.00 Crore
      • Debts, Liabilities, Obligations or Contracts entered into before such conversion shall be affected.
      • Voluntary: OPC can voluntarily convert itself into Private Limited Company after following procedure specified in Companies Act 2013. However it has to comply with following condition:
        • It has completed minimum two years of Incorporation.
        • Debts, Liabilities, Obligations or Contracts entered into before such conversion shall be affected.

Documents :

                   Proof of address of place of Registered office : Electricity bill/ Telephone Bill/ Tax Receipt

    • Proof of residence of Subscriber/ Director/ Nominee : Bank Statement/ Electricity bill/ Telephone Bill
    • PAN of Subscriber/ Director/Nominee
    • Photograph of Subscriber/ Director/ Nominee
    • Adhar Card of Subscriber/ Director/ Nominee
    • Few signed Documents such as INC 3, INC 9, DIR 2 which shall be drafted after getting above documents

Collection of Documents and Details

Drafting of Document

Filing of forms

Approval of Authority