One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act, 2013, a single person could not establish a company. If an individual wanted to establish his business, he/she could opt only for a sole proprietorship as there had to be a minimum of two directors and two members to establish a company. As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser than that of a private company. If you want to go ahead with your idea alone; one person company is a perfect partner for you.

The directors' personal property is always safe in a private limited company, no matter the debts of the business.

Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.

As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.

It is easy to incorporate the one person company as only one member and one nominee is required for its incorporation. The member can be the director also. There is no minimum paid-up capital requirement and minimum authorised capital for incorporating OPC is Rs.1 lakh

The Companies Act, 2013 provides certain exemptions to the OPC with relation to compliances. The OPC need not prepare the cash flow statement. The company secretary need not sign the books of accounts and annual returns and be signed only by the director.

The whole incorporation process of an OPC takes approximately 15 working days, subject to departmental approval and revert from the respective department.

OPC Registration in Mumbai Process

The first step to register to OPC is obtain a DSC of proposed Director.

Once DSC is generated, the next step is apply for DIN (Director Identification Number) on MCA through SPICe form along with necessary documents and details.

The next step of OPC registration In Mumbai is to decide name for the Company. The name of the Company will be in the form of “XYZ (OPC) Private Limited”. Afterward for name approval SPICe 32 is to be filled using MCA RUN web services.

All these documents will be attached to the SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and the professional, and will be uploaded to the MCA site for approval. The Pan Number and TAN is generated automatically at the time of incorporation of the Company.