One Person Company Registration

Every natural person who is an Indian citizen, whether or not they reside in India, may form a One Person Company.

In essence, an OPC is a private limited company with a sole shareholder. Given that it is a private limited company, perpetual succession is possible. The sole member is needed to designate a candidate who will assume control in the event of their demise or incapacity

Yes. The appointment of a nominee by a member of an OPC is required.

No, No, a person cannot simultaneously represent himself as a member of more than one OPC.

During 180 days, he or she must resign from any one of the OPCs.

A minor is not permitted to join an OPC, serve as its nominee, or possess shares of an OPC with a beneficial interest.

Conversion of an OPC to a public limited or private limited company has no threshold limit. In the Companies (Incorporation) Second Amendment Regulations, 2021, provisions relating to the minimum paid-up capital that justified a mandatory conversion of an OPC have been repealed.

• OPC cannot engage in non-banking financial operations, such as investing in the securities of anybody corporate, and
• OPC cannot be converted into a Section 8 companies.

• An OPC is obliged to convene at least one Board meeting in each half of the year, with no more than 90 days passing between meetings.
• E form AOC-4 must be submitted to ROC within 180 days of the fiscal year's end. The annual financial report (AOC 4) includes a balance sheet, P&L, and auditor’s report.
• Form MGT 7A must be submitted to ROC within 60 days of the AGM date. (MGT 7A is an annual return that covers details of directors and shareholders).
• File an income tax return by October 31 of the next fiscal year.
• Tax audit report in Form 3CA-3CD if the turnover exceeds the allowable threshold specified by the Income Tax Act of 1961 on or before September 30 of the succeeding fiscal year.

No. It is not required for an OPC to hold an annual general meeting.

If no AGM is held, Form MGT 7A must be submitted 60 days after the estimated AGM due date. The calculated due date for the AGM is six months after the fiscal year's conclusion.

The Company Secretary or, in the absence of a Company Secretary, the Director of a Company shall sign the Annual Return of an OPC.

When the nominee of an OPC replaces the sole member of an OPC in the case of his demise or inability to enter into a contract, Form INC-4 is filed with the Registrar. With the prior written approval of the individual thus nominated in Form INC-3, such a form must be filed within 30 days of the change in membership.

By increasing the minimum number of members and directors to 2 or 7 members and 2 or 3 directors, as the case may be, and by maintaining the minimum paid-up share capital as per the requirements of the Act for such companies, including proper compliance with section 18 of the Act for such conversion, an OPC may be converted into a private or public company other than a company registered under section 8 of the Act. For the conversion of OPC into a private/public company, E-Form INC-6 must be submitted.

A Cash Flow Statement that is a component of an OPC's financial statement is not required to be prepared or disclosed.

The most striking distinction between the two is that an OPC member has limited liability, whereas a sole proprietorship requires unlimited liability of its members. An OPC has the status of a distinct legal entity, but a single proprietorship does not. In contrast to a single proprietorship, which dissolves upon the death or retirement of its members, an OPC exists indefinitely.