The concept of One Person Company, OPC registration is a new vehicle/form of business, which was introduced by The Companies Act, 2013 [No.18 of 2013], thereby enabling the Entrepreneur(s) to carry on the business in the Sole-Proprietor to form of business to enter into a Corporate Framework. It allows one person to run the whole business and its shares.

One Person Company is thus a hybrid of a Sole-Proprietor and a Company form of business, and it has been provided with the concessional/relaxed requirements under the Act.

This article will tell us about the minimum requirements of a one-person company.

Only one shareholder: Features of One Person Company (OPC)

Only a natural person, who is an Indian citizen and a resident in India shall thus be eligible for one person company registration.

  1. Nominee for the shareholder :

The Shareholder shall thus nominate another person who would become the shareholders in case of death/incapacity of the original shareholder.  Such nominee shall thus give his/her consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and a resident in India shall thus be considered to be a nominee for the sole member of a One Person Company.

  1. Director :

The company requires to have a minimum of One Director, the Sole Shareholder can thus himself be the Sole Director. The Company may, however, have a maximum number of 15 directors.

Thus as per the Companies Rules, 2014, the following person can thus be eligible for OPC registration in India.

Thus only a natural person who is an Indian citizen and also resident in India.

  1. Shall thus be eligible for one person company registration

  2. Shall also be a nominee for the sole member a One Person Company

Thus some of the minimum requirements for one person company registration:

  1. Minimum 1 Director

  2. A Minimum of 1 member

  3. Minimum share capital shall be Rs.100,000 (INR One Lac )

  4. Application of allotment Director Identification Number ( DIN )

  5. A Digital Signature Certificate ( DSC)

Also, some of the documents for One Person Company are :

  • Reservation of an application of name in INC-1

  • Identity proof, address proof, and a PAN card copy of nominee and member

  • A written Consent of Nominee in form INC-3

  • A Memorandum and Affidavit of the sharer for form INC-9

  • An Application for the Company Registration

  • A registrar Office Address in Form INC-22

  • A registered office’s address proof

Related Article–

One Person Company Compliances and Annual Filing

Board Reports for OPC and Small Company