Register a person Company

 A new idea has been included in the Act of the Company 2013 regarding the Organizational Planning Committee (OPC). For a Private Company, there must be a minimum requirement is two Directors and two members are required, whereas in the case of a public Company it is there must be at least 3 directors and an average of seven members. A single person is not able to establish the Company before.

One person company registration (OPC) is a company that is formed by a single person. Prior to the enactment of the Companies Act, of 2013, Opc registration fees was not able to create the company. If someone was looking to start a firm, he/she was able to select sole proprietorship, as there was a requirement of at least 2 directors as well as two shareholders to create the company.



According to section 2(62) (62) of the Act of the Company's Act 2013 A company is able to be established by a single Director and one member. It's a type of company with compliance requirements that are lower than that of a private company.

The Companies Act, 2013 provides that an individual may form a company that has a single director and a single member. Director and member may be one person. Therefore, one person company refers to one person who is a resident or NRI who may incorporate their company that has the characteristics of a company as well as the advantages of the sole proprietorship.

Benefits of OPC

Legal status

The OPC is granted a separate legal entity status through the members. The legal entity separate from the OPC provides protection to the sole person who been incorporated into it. The responsibility of the member is restricted to the amount of shares held by him/her and is not personally responsible for the damage to the company. So, creditors can take on the OPC but not the member or the director.

It is easy to get funds

Because OPC is an independent company and is a private company, it is simple to raise funds via venture capital and angel investors incubators, angel investors and so on. The Banks and Financial Institutions prefer to grant loans to an company rather than a sole proprietorship company. This makes it easy to access funds.

There are fewer compliances

The Companies Act, 2013 provides specific exemptions for the OPC regarding compliance requirements. The OPC is not required to make the cash flow statements. The company secretary is not required to be able to sign books of account and annual returns. They must only the director.

Simple to integrate

It is very easy to incorporate OPC because just one person and one nomination are needed for incorporation. The member could be director as well. The minimum capital authorised to incorporate OPC can be Rs.1 lakh however there isn't a minimum capital required. This makes it easy to incorporate in comparison to other types of company.

Simple to manage

Because a single person is able to set up and run the OPC It becomes simple to manage the OPC's affairs. It is easy to take decisions and the decision-making process is swift. Special and ordinary resolutions can be approved by the members easily by recording them in the minute book, and then authorized by the sole shareholder. Therefore, managing and operating the company is straightforward since there won't be any conflicts or delays within the company.

Perpetual succession

The OPC is a model of perpetual succession, even when it is just one person. When taking on the OPC one-member has to nominate an appointed nominee. In the event of death the nominee will take over the company in the absence of the member.

OPC's disadvantages OPC

Small businesses are best suited to this.

OPC is perfect for small businesses. There is a maximum of shareholders that OPC can include is one at any given time. Shareholders or members cannot be added to the OPC to raise additional capital. Therefore, as the company expands and growth of the company there is no way to add more members. added.

Restrictions on business activities

The OPC is not able to carry out Non-Banking Financial Investment activities, which includes the purchase of securities by corporations of any kind. It is not able to be transformed into an company that has charitable objectives as defined under Section 8 of Companies Act, 2013.

Management and ownership

Because the sole member could additionally be the company's director company There will not be any clear distinction between management and ownership. The sole member is able to make and approve of all decisions. The line between control and ownership is blurred and could lead to illegal business procedures.

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