One Person Company Registration

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One Person Company

To encourage unorganized proprietorship businesses to enter into organized corporate world, The Government came up with the concept of "One Person Company". As per sec 2 (62) of The Companies Act, 2013, 'One Person Company' company means a company where only one person is the member of company. It is a basically a private company with some unique features.

Logic and concept of One Person Company (OPC)

The Government of India constituted an expert committee on company law on 2nd December 2004 under the chairmanship of Dr. JJ Irani. The Committee submitted its report to the Government and gave its opinion on company law in respect of international market. The concept of One Person Company (OPC) is one of them. Committee observed increasing use of information technology & digital market and emergence of the service sector. The entrepreneurial skills also required an organic platform to participate in the formal economy. It is hard to believe entrepreneur who has brilliant idea come with association of person to participate in the market. The JJ Irani Committee recommended that the law should recognize the single person identity by way of formation of Single person entity as ‘One Person Company.

Characteristics of One Person Company (OPC)

A One Person Company (OPC) is recognized as private company however certain provision of private company will not apply to an One Person Company (OPC), for instance only one member is sufficient to form a company. One Person Company has privilege not to hold Annual General Meeting (AGM).

Information to be provided in the Directors’ Report has been minimized as compared to private company The Annual report is to be signed by either the company secretary or the director whereas Annual Return of private or public limited companies are to be signed by both the director and company secretary and in case of no company secretary is hired, then by a practicing company secretary.

If One Person Company has more than one director then it is to hold at least one meeting of the Board of Directors in each half of calendar year and the gap between two meetings should note less than ninety days.

Other Provisions

  • A natural person shall not be member of more than One Person Company (OPC) at any point of time and the said person shall not be a nominee of more than one (OPC)
  • A minor is not eligible to become a member of One Person Company (OPC)
  • One Person Company (OPC) is not eligible to convert itself into company under sec 8 (Non-Profit Companies) of the Act
  • One Person Company (OPC) can’t perform as non-banking financial investment entity.
  • One Person Company (OPC) can’t invest in the securities of any body corporate.

Tags : Company (OPC) One Person Company

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