One Person Company feature is such that it has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability
A One Person Company would obtain the status of a separate legal entity. Such OPC registration ensures that the entity is separate from the owner, unlike a proprietorship firm. OPC can own the assets in its own name and enter into a contract with the parties. The actions of the company are independent of the owner. This is the main benefit of OPC registration.
A Single Person Company is benefited with an exemption to many compliances unlike a private company. Compliances like holding General and Board Meeting, etc. are not applicable to OPC. However, Board Meeting must be held if more than one director is on Board.
One of the benefits of registering OPC lies in the separate legal entity of the company where the liability and obligations are not charged over the personal assets of the sole member. The liability of a member is limited to the unpaid amount of the capital subscribed by the member. Even in the case of liquidation, the personal assets of the member are protected, except in certain specified cases.
Even if the OPC is owned by sole personnel, the owner may appoint a director owing up to the responsibility to operate and run a company. The operational duties are assigned to the director(s) whereas the member would be able to fetch profits channeling efforts towards other businesses. However, in One Person Company, the shareholder holds complete control over being a stakeholder.
Days 1 - 2
Days 3 - 5
Days 6 - 10
Days 11 - 14
PAN Card of shareholder, nominee, and Directors.
Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.
Director’s Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
No Objection Certificate to be obtained from the owner(s) of registered office
| Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm | |
|---|---|---|---|---|---|
| Applicable Law | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act, 1932 | No specified Act |
| Registration | Mandatory | Mandatory | Mandatory | Optional | No |
| Number of Owners | 2 – 200 | Only 1 | 2 – Unlimited | 2 – 50 | Only 1 |
| Separate Legal Entity | Yes | Yes | Yes | No | No |
| Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | As Applicable | Not Mandatory | Not Mandatory |
| Ownership Transfer | Yes | Yes (Restricted) | Yes | Yes (Restricted) | No |
| Perpetual Existence | Yes | Yes | Yes | No | No |
| Foreign Ownership | Allowed | Not Allowed | Allowed | Allowed | Not Allowed |
| Taxation Liability | Moderate | Moderate | HIgh | High | Low |
| Compliance Requirement | High | High | Moderate | Low | Low |