Question 1

What is One Person Company (OPC) registration?

Accepted Answer

One Person Company (OPC) registration is the process by which a single individual can incorporate a private limited company with limited liability and a separate legal identity. The OPC structure combines the benefits of sole proprietorship with the features of a corporate entity.

Question 2

Who is eligible to be a member of an OPC?

Accepted Answer

An individual who is a natural person, an Indian citizen, and a resident in India is eligible to incorporate an OPC. The person must not be a member or nominee of more than one OPC at a time. Foreign nationals, companies, and LLPs are not permitted to form or join an OPC.

Question 3

What documents are required for OPC registration?

Accepted Answer

To register an OPC, you need the PAN card, Aadhaar card, and address proof of the proposed director or member. Additionally, a utility bill and a No Objection Certificate (NOC) from the property owner are required to confirm the registered office address. Digital Signature Certificate (DSC) and Director Identification Number (DIN) must also be obtained.

Question 4

Is registration of OPC compulsory?

Accepted Answer

Yes, registration of an OPC is compulsory to operate legally as a corporate entity in India. The company must be incorporated with the Ministry of Corporate Affairs (MCA) through the prescribed procedures. Only after registration can the OPC enjoy benefits like limited liability, separate legal identity, and access to formal banking and contracts.

Question 5

Who cannot form an OPC?

Accepted Answer

Minors, non-resident Indians, and individuals already associated with another OPC as a member or nominee are not allowed to form a new OPC. Additionally, artificial legal persons such as companies, LLPs, and other corporate entities cannot register as an OPC.

Question 6

How is the registered office address determined for an OPC?

Accepted Answer

The registered office address is provided during the incorporation process and must be located in India. It can be either a residential or commercial property, provided valid address proof and a No Objection Certificate (NOC) from the owner are submitted. This address is used for all official communications and compliance notices from the government.

Question 7

What is the role of a nominee in an OPC?

Accepted Answer

A nominee is a person appointed by the sole member of the OPC to take over the company in the event of the member’s death or incapacitation. The nominee must give written consent to act in such a role, and their details are filed with the Registrar at the time of incorporation. This ensures continuity of the business without disruption.

Question 8

What are the post-incorporation formalities for an OPC?

Accepted Answer

After incorporation, the OPC must apply for PAN, TAN, and open a current bank account in the company’s name. It must appoint a statutory auditor within 30 days, maintain proper books of accounts, and file annual returns and financial statements with the MCA. Compliance with GST and other applicable tax registrations may also be required, depending on business activity.

Question 9

What is the difference between an OPC and a sole proprietorship?

Accepted Answer

One Person Company Registration provides limited liability protection, creating a clear separation between personal and business assets, while a sole proprietorship offers no such distinction.

Question 10

Can an NRI form an OPC in India?

Accepted Answer

No, only Indian citizens who are also residents of India can complete One Person Company Registration. This residency requirement means the person must have stayed in India for at least 182 days during the immediately preceding financial year before attempting One Person Company Registration.

Question 11

How many OPCs can one person form?

Accepted Answer

An individual can be a member of only one OPC company through One Person Company Registration at any given time. This restriction prevents the misuse of the One Person Company Registration structure for creating multiple limited liability entities.

Question 12

What is the minimum capital requirement for One Person Company Registration?

Accepted Answer

There is no minimum capital requirement for incorporating an OPC. You can start with any amount of authorized capital based on your business needs and financial capacity when completing the registration.

Question 13

Can an OPC have multiple directors?

Accepted Answer

Yes, an OPC company formed through One Person Company Registration can have up to 15 directors, although it can only have one member (shareholder). This arrangement, allowed by One Person Company Registration, enables professional management while maintaining single ownership, bringing diverse expertise to the business without ownership dilution.

Question 14

How long does it take to register a One Person Company in India?

Accepted Answer

The entire OPC registration process typically takes 10-15 working days, including name approval, document preparation, and final incorporation, assuming all documents are in order.

Question 15

Can I run my OPC from my home address?

Accepted Answer

Yes, you can use your residential address as the registered office for your One Person Company Registration, provided you have proper documentation like a NOC from the landlord or ownership proof.

Question 16

Is it mandatory to appoint a nominee for One Person Company Registration?

Accepted Answer

Yes, appointing a nominee is mandatory for One Person Company Registration. The nominee steps in as the member in case of the original member's death or incapacity, ensuring business continuity—a key feature of One Person Company Registration.

Question 17

Can I choose any name for my One Person Company Registration?

Accepted Answer

Your OPC company name must be unique, not resembling existing companies, and must end with "(OPC) Private Limited." It should not contain restricted words or be deemed undesirable under the Companies Act guidelines for One Person Company Registration.

Question 18

Do I need a physical office for One Person Company Registration?

Accepted Answer

Yes, you need a physical address that serves as your registered office where all statutory registers and documents will be maintained after One Person Company Registration. This can be a commercial or residential property as long as it meets the requirements for One Person Company Registration.

Question 19

Are OPCs required to hold board meetings?

Accepted Answer

Yes, companies formed through One Person Company Registration must hold at least two board meetings in a calendar year, with at least a 90-day gap between consecutive meetings. Minutes of these meetings must be properly documented as part of ongoing compliance after One Person Company Registration.

Question 20

Can an OPC issue shares to the public?

Accepted Answer

No, an OPC company created through One Person Company Registration cannot invite the public to subscribe for its securities, including shares or debentures. It remains a privately held entity with a single member as stipulated in the One Person Company Registration regulations.

Question 21

Is GST registration mandatory after One Person Company Registration?

Accepted Answer

GST registration becomes mandatory after One Person Company Registration if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if you engage in interstate supply of goods or services with your OPC company.

Question 22

Can an OPC distribute dividends?

Accepted Answer

Yes, a company formed through One Person Company Registration can declare and distribute dividends to its sole member after meeting all tax obligations and statutory reserves requirements following the OPC company guidelines.

Question 23

What happens to an OPC if the member becomes incapacitated?

Accepted Answer

If the member becomes incapacitated after One Person Company Registration, the nominated person automatically becomes a member of the OPC company and must appoint another person as a nominee within 15 days to maintain compliance with One Person Company Registration requirements.

Question 24

When must an OPC convert to a private limited company?

Accepted Answer

An OPC company must convert from its original One Person Company Registration to a private limited company when its paid-up capital exceeds ₹50 lakhs or its average annual turnover exceeds ₹2 crores for three consecutive financial years.

Question 25

Can I convert my existing sole proprietorship to an OPC?

Accepted Answer

Technically, it's not a conversion but rather the establishment of a new entity through One Person Company Registration and transferring the business assets and operations from your sole proprietorship to the newly formed OPC company.

Question 26

How can I close my OPC if I no longer wish to operate it?

Accepted Answer

You can close your company formed through One Person Company Registration through voluntary strike-off by filing Form STK-2 with the ROC after settling all liabilities, or through a formal winding-up process for more complex situations involving your OPC company.

Question 27

What happens if I fail to pay my OPC company registration fees?

Accepted Answer

If you fail to pay your OPC company registration fees, the registration process will be halted. Your application will remain incomplete, and your company will not gain legal recognition until the payment is made.

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