OPC is an acronym for One Person Company. Registration of OPC under companies Act, 2013 requires only one person and can be fully operative with a minimum of one director. An OPC has attributes of private limited companies, but with lesser compliance requirement.
This new initiative has been taken to empower an individual who alone wants to start his venture which can provide a unique identity to his business model. OPC has already been prevalent in developed countries like UK, Singapore, USA etc but in India, this business model has been introduced under the New Companies Act, 2013.
Steps to incorporate OPC in India:
- The sole member of OPC must obtain a DIN along with DSC.
Note: Minor shall not be eligible to be member or nominee of OPC. A person shall not incorporate more than one OPC
- File Form No. INC1: An application shall be made to Registrar of Companies (ROC) for name approval in Form No. INC1.
- File Form No. INC2: Application for incorporation has to be filed in form no. INC 2.
- Obtain written consent of nominee in form No. INC 3.
- MOA and AOA: Memorandum of Association (MOA) and Article of Association (AOA) are the main documents of any company in India which are basically bye-laws of the company, therefore, OPC also require to draft its MOA and AOA and file these documents with ROC.
MOA, in a case of a company, have 7 clauses which are: Name Clause, Registered Office Clause, Main Object Clause, Liability Clause, Capital Clause, Subscriber Clause and Nominee Clause. In a case of other companies, there are only 6 clauses. Nominee clause is not applicable in a case of other companies.
- The word one person company must be used at the end of the name of the company. Example ABC Construction OPC Private Limited or PQ Construction Private Limited OPC
- File Form DIR-12: The appointment of director has to be made by filing form DIR-12 along with his consent to act as a director.
After following all the steps mentioned above, ROC shall issue Certificate of Incorporation (COI) in the format of INC 11, which means you have got your OPC registration certificate. Now you can start your business.