One Person Company

OPC is one of the significant milestones of the Companies Act, 2013, introduced to encourage self-employment with a backbone of India’s legal system.

If there is only one promoter/founder, One Person Company (OPC) is the best way to start a company. OPC is one of the significant milestones of the Companies Act, 2013, introduced to encourage self-employment with a backbone of India’s legal system. OPC requires one member (member refers to someone who subscribes to Memorandum/has their name in the Register of members/holds shares of the company with their name in the records of depository) and one nominee, who becomes the member of the company.

Before prepping up for OPC, please keep in mind the following points –
1. Only a natural person (Not Association of persons, Body of Individuals, Company, or any other entity) who is a resident of India in preceding calendar year (stayed in India for 182 days) can form OPC.
2. You cannot incorporate more than one OPC or be the nominee of more than one OPC.
3. There is threshold of paid up capital (Rs. 50 lakh) and average annual turnover (Rs. 2 crore in 3 immediate preceding financia .

4. Rules of OPC do not permit Non-Banking Financial Institutions.