OPC Private Ltd., Company Registration in Chennai
We FIRMDESK are the right destination for your OPC Private Limited Company Registration in Chennai.
What is an OPC (One Person Company)?
A one-person company (OPC) is a type of private limited company introduced under the Companies Act, 2013 in India. It is specifically designed for a single entrepreneur to run a company while enjoying the benefits of limited liability and a separate legal identity. It blends the advantages of sole proprietorship and corporate structure.
Key Features of OPC
Single Owner:
OPC allows only one shareholder who owns 100% of the company.
The shareholder must be a natural person and an Indian resident.
Nominee Requirement:
A nominee must be appointed during incorporation.
The nominee takes control of the company in the event of the shareholder’s death or incapacity.
Limited Liability:
The owner’s liability is limited to their investment in the company, protecting personal assets from business liabilities.
Separate Legal Entity:
OPC is legally distinct from its owner.
It can own property, sue, and be sued in its name.
Restrictions on Business Activities:
OPC cannot engage in non-banking financial investment activities.
It cannot convert into a public company unless it meets specific criteria.
Taxation and Compliance:
OPC is taxed as a private limited company and enjoys tax benefits.
It must comply with annual filings and other legal requirements, like maintaining statutory records.
Eligibility Criteria for OPC in India
Shareholder: Only one individual is allowed, who must be:
An Indian citizen.
A resident of India (residing in India for at least 120 days in the preceding financial year).
Nominee: A natural person who meets the same residency criteria.
Minimum Capital: No minimum paid-up capital is required.
Advantages of OPC
Ease of Management
A single decision-maker ensures faster decisions and simpler operations.
Minimal internal conflicts compared to multi-owner setups.
Limited Liability Protection:
The owner’s personal assets are not at risk for company liabilities.
Separate Legal Status:
The OPC is a distinct legal entity, which improves business credibility and allows it to own assets.
Perpetual Succession:
The company continues to exist even after the shareholder’s demise, as the nominee assumes control.
Access to loans and investments:
OPCs are more attractive to banks and financial institutions for credit compared to sole proprietorships.
Ideal for:
Entrepreneurs and professionals who want to start a business with full control but prefer the benefits of corporate structure.
Startups with limited capital and single ownership.
An OPC is an excellent choice for small business owners who want limited liability protection and a formal corporate structure while maintaining control.
OPC vs. Sole Proprietorship
| Feature | OPC | Sole Proprietorship |
|---|---|---|
| Legal Entity | Separate legal entity | No separate legal entity |
| Liability | Limited to the investment | Unlimited personal liability |
| Compliance | Higher | Minimal |
| Ownership | Single shareholder | Sole owner |
| Succession | Perpetual | Ends with the owner |
OPC Pvt Ltd Registration Cost
Our Highlights
- Timeline 15 Days
- Excellent & Efficient Service
- Expertised Handling
- Affordable Pricing
- Hassle Free Process