FAQ ( Frequently Asked Questions )
An OPC is a type of company that can be formed by an individual, providing the benefits of limited liability and corporate status, while requiring fewer compliance obligations compared to other types of companies.
Any individual who is a resident of India can form an OPC. The individual must be an Indian citizen and resident in India. A foreign national cannot form an OPC.
Single Shareholder: Only one person can be a shareholder.
Limited Liability: The liability of the owner is limited to the amount of unpaid share capital.
Conversion: An OPC can be converted into a private or public company as per the prescribed conditions.
Limited Liability: The liability of the owner is limited to the amount of unpaid share capital.
Conversion: An OPC can be converted into a private or public company as per the prescribed conditions.
One Director is required, who must be a resident of India. A registered office address in India is required.
Proof of Identity: PAN card or passport Proof of Address: bank statement of the sole member. Proof of Registered Office: Lease agreement or utility bill of the registered office.
Annual Return is must for OPC to file an annual return with the Registrar of Companies (ROC). Annual financial statements must be prepared and filed. No mandatory board meetings required but minutes of decisions should be documented. OPCs are required to get their accounts audited annually.
Yes, an OPC can be converted into a private or public company if it meets the criteria laid down under the Companies Act, 2013. This usually happens when the OPC exceeds the threshold limits for membership or turnover specified by the Act.
In such a case, the OPC must be restructured to comply with the requirements of having a new member or be converted into another type of company. The OPC must designate a nominee who will take over the company in the event of the sole member’s death.
An OPC is taxed like a private limited company. It is subject to corporate tax rates and must comply with GST and other tax obligations as applicable. The OPC can also avail of tax benefits and exemptions as per the provisions of the Income Tax Act.
The liability of the sole member is limited to the amount of unpaid share capital. The member’s personal assets are protected from business liabilities.
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