A (OPC) combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.
Section 2(62) of Companies Act defines as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.
One Person Company
OPC is formed as a Private Limited Company.
Can a foreign national form an OPC?
No. Only an Indian citizen and resident can form a OPC.
Is there a restriction in setting up OPC?
Yes. An individual can start only one OPC
Who can start an OPC?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
One Person Company
For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
The Companies Act, 2013 completely revolutionized corporate laws in India by introducing several new concepts that did not exist previously. On such game-changer was the introduction of OPC concept. This led to the recognition of a completely new way of starting businesses that accorded flexibility which a company form of entity can offer, while also providing the protection of limited liability that sole proprietorship or partnerships lacked.
Several other countries had already recognized the ability of individuals forming a company before the enactment of the new Companies Act in 2013. These included the likes of China, Singapore, UK, Australia, and the USA.
Registration required for proprietary concern depending on business :
- GST Registration
- Registration under Karnataka Shops and Establishment Act
- Profession Tax Registration
- MSME | Udyog Aadhaar Registration
- Employee Provident Fund Registration (PF Registration)
- Employee State Insurance Registration (ESI Registration)
- STPI Registration or Non-STPI Registration
- Import Export Code (IEC)
- Trade License from BBMP
Not looking for OPC registration? Click below to find other forms of entity registration :
- Partnership Firms Registration in Bangalore
- Proprietary concern
- Limited Liability Partnerships (LLPs) Registration in Bangalore
- Private Limited Company Registration
- Subsidiary Company Registration in Bangalore
- Setup Branch / Liaison Office in India