OPC is an acronym for One Person Company. An OPC has attributes of private limited companies. Still, it is one with lesser compliance requirements. Registration of OPC under the Companies Act, 2013 requires only one person. It can be fully operative with a minimum of one director.
This new initiative has empowered an individual to start his venture, providing a unique identity to his business model. OPC has already been prevalent in developed countries like the UK, Singapore, the USA, etc. This business model was introduced in India under the New Companies Act, 2013.
A One Person Company, or OPC, is a business entity formed with the idea that only one person will head the business. They shall be responsible for taking care of the company's day-to-day affairs and shall be the sole beneficiaries of all the profits. Thus, incorporating an OPC Company comes with the following benefits:
(Note: Minor shall not be eligible to be a member or nominee of OPC. A person shall not incorporate more than one OPC)
The Memorandum of Association, in the case of a company, has 7 clauses which are: Name Clause, Registered Office Clause, Main Object Clause, Liability Clause, Capital Clause, Subscriber Clause, and Nominee Clause. In the case of other companies, there are only 6 clauses. The nominee clause is not applicable in the case of other companies.
After following all the steps mentioned above, ROC shall issue a 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.