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Definition     Keypoints      Procedure    Documents     FAQ’s       


The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company – who will become the owner of the OPC in case the sole Director is disabled.




  Pan copy of the Director and Nominee

  ID Proof of the Director and Nominee – Driver’s License/Passport/Voter’s ID- Any one

  Address Proof of the Director and Nominee – Bank  Statement/Telephone bill/Mobile Bill/Electricity Bill – Any one [all the above documents needs to be self attested and by Gazetted Officer]

 Passport Size photographs (4 each)


1. Why should I form an OPC?

An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.

2. How many people are required to start One Person Company?

At least one nominee is required to start an OPC who can act as shareholder as well as director.

3. What is a nomination in OPC Registration?
Since only one person is the shareholder of the OPC hence, hence at the time of incorporation of a one person company, any other person is nominated as nominee with their consent.
4. How much money do I need to invest upfront to start a business?

You need to have a bank account with a minimum balance. This could be as little as Rs. 5000. You don’t need to invest any more capital to start the business.

5. How much does it cost to run an OPC?

The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.

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