OPC – One Person Company


One person company (OPC)

One Person Company is a new concept introduced by the Companies Act 2013. The reason behind the introduction of OPC is to provide a platform to individual entrepreneurs who are willing to venture alone. Before the concept of One Person Company, in order to start a Company the minimum requirement was to have at least two Partners/ Shareholders, thus the only option left for an individual was to go for sole proprietorship if unable to find a Partner. OPC holds a bright future for small traders, entrepreneurs with low risk taking capacity, and other service providers

As per Section 2(62) of the Companies Act, 2013 One Person Company means a company which has only one person as a Member. 

A Company, is a legal entity with limited liability. Thus the liability of the owner would be only up to the amount of capital invested or shares taken up. Thus, the Concept of One Person Company opens up new vistas of business opportunities and also great possibilities for sole proprietors and individual entrepreneurs who can enjoy the advantages of limited liability, and the benefit of separate legal entity as well.

Who is eligible to form One Person Company?

Only a natural person who is not minor and is resident in India shall be eligible to form an OPC. Thus body corporate/companies cannot be a member of OPC.  

Minimum requirements

  • Minimum One Shareholder (Should not be a minor)
  • Minimum One Director (Maximum upto 15 )
  • One Nominee
  • Digital Signature for Director

Other Conditions

  • A minor cannot be a member of OPC.
  • No person shall be eligible to incorporate more than 1 OPC or become nominee in more than one such company
  • Such Company cannot be incorporated or converted into a company under section 8 of the Act (Section 8 Company is “Not for Profit Company”)
  • Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate
  • OPC cannot convert voluntarily into any other kind of company unless two years have expired from the date of incorporation of One Person Company.

Steps to form OPC

Apply for Digital Signature : Digital signature is used to sign all the forms submitted electronically ie online to the ministry of corporate affairs. Even after incorporation of Company The digital signature is used to sign all other forms as and when required to be submitted to the Ministry of Corporate affairs(MCA)

Obtain Director Identification Number : Every director is supposed to have a unique identity number allotted to him/her on application to the Ministry of Corporate affairs(MCA) .

Name Approval of Company : The applicant is supposed select a suitable for the Company and make an application to the Ministry of Corporate affairs(MCA)for its availability The name should be related to the activity of the Company and not resemble any other existing companies name.

Drafting of Memorandum & Articles of Association of Company : Memorandum of association is a legal document containing the regulation of the Company & Articles of association contains the rules and regulations of the internal management of the Company

Filing of Incorporation documents with the Ministry of Corporate affairs(MCA) : E-forms containing the details of capital, shareholders, registered office of the Company and all the required identification and residential proof documents are to be submitted to MCA for incorporation of Company. If all the conditions are met and documents are as per the law the Ministry shall issue a Certificate of Incorporation to the Company.


  1. companykanoon says:


Leave a Reply