What is One Person Company (OPC) under Companies Act, 2013?

author portrait

Hiral Vakil

OPC
Start & Run Business

Companies Act, 2013 introduced the concept of One Person Company (OPC) for entrepreneurs who want to create a single person economic entity. Similar to a Company, a One Person Company is a separate legal entity from its promoter and it is easy to incorporate. One Person Company (OPC) allows a single member to Incorporate and run a business. OPC should be incorporated on MCA Portal.

One Person Company (OPC) Registration
Take help of an expert to incorporate OPC i.e. One Person Company on MCA
Read More
One Person Company (OPC) Registration
Take help of an expert to incorporate OPC i.e. One Person Company on MCA
Read More

Who can incorporate One Person Company (OPC)?

Any individual who is an Indian citizen and resident of India in the previous financial year can incorporate OPC. A Resident of India means a person who has stayed in India for more than 182 days during the previous year. The minimum authorised capital required for incorporation is Rs. 1,00,000.  For incorporation of OPC, the promoter must appoint a nominee and the nominee cannot be minor.

Who can not Incorporate One Person Company (OPC)?

What are the benefits of incorporating OPC?

FAQs

Can a person be a member of more than one One Person Company (OPC)?

No, a person can not be a member of more than one One Person Company. And if a person who is a member of One Person Company becomes a member of another One Person Company by virtue of his being a nominee then he shall meet the eligibility criteria of being a member in only One Person Company within a period of 180 days. In simple words, he shall withdraw his membership from either of One Person Company within 180 days.

Is nominee mandatory for incorporation of One Person Company (OPC)?

Yes, One Person Company can not be incorporated without a nominee. The nominee is an individual who will take place of a sole promoter in case of death or incapacitation of the sole promoter. The nominee must be over the age of 18 years and must be an Indian citizen and Indian resident.

What tax rate is applicable for an OPC?

Tax rates on an OPC are the same as of a Private Limited company. Thus OPC is liable to pay tax at the flat rate of 30% plus 2% education cess and 1% secondary higher education cess. Also, surcharge at 5% is levied if the turnover exceeds Rs. 1 Cr. similar to a Private company.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Close Bitnami banner
    Bitnami