Which is better OPC or Pvt Ltd?

If you anticipate significant growth or wish to bring in more shareholders, Private Limited Company. Allows for more straightforward conversion and expansion. If you foresee remaining a single-owner business without the need for additional shareholders, OPC may be a more suitable option.

Who is eligible for OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.

Can we convert OPC to Pvt Ltd?

OPC can be converted into a Private Limited Company with a minimum of 2 members and 2 directors.

Is OPC a private company?

An OPC is incorporated as a private limited company

Can OPC do multiple business?

Can OPC do multiple business? you can run four different businesses under one OPC. All the four business activities should be same or in the same industry. For Example: If you are a manufacturer of clothes then you can manufacture the clothes under one name, and can have multiple stores with different brand name to sell the same.

What is the turnover limit for OPC?

One person company is suitable for small companies where the turnover is not likely to cross Rs. 2 Crores, and the maximum amount of capital is limited to Rs. 50 Lac. An OPC can have more than one director.

What is the minimum capital of OPC?

The paid-up capital requirement for starting One Person Company is ₹1 lakh in India.

GST registration is mandatory if their annual turnover exceeds Rs. 20 lakhs for services or Rs. 40 lakhs for goods.

Easy to register OPC company

What is a one person Company (OPC)..?

Easy to register OPC (one person company) company

One person company (OPC) is a new business structure that permits a single entrepreneur to manage a business entity with limited liability.

This concept was introduced to motivate entrepreneurs who are capable of starting a venture on their own by permitting them to create a single person economic entity. It allows a single promoter full control over the company while limiting his liability to contributions to the business. This single promoter will be the only director and shareholder in the company, though there is another director (a nominee director nominated in the MOA and AOA of the company) with no power until the original director becomes incapable of entering into a contract.

Advantages of Pvt Ltd Company

Legal status
Easy to obtain funds
Less compliance
Easy To Manage
Easy incorporation

Disadvantages of Pvt Ltd Company

Suitable for only small business
Restriction of business activities
Ownership and management

Its OPC Company’s Structure

Details	Proprietors looking to limit their liability and have 100% control
Minimum no of Member	1
Compliance	Moderate
Obtaining Fund	Challenging
Tax Rate	15%-25%

Steps to register One Person Company

Step 1: Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) from the Controller of Certification Agencies (CCA) is required for each director and shareholder. This entails supplying necessary information including a phone number, email address, PAN, Aadhaar card, and passport-sized pictures. Additionally, if necessary, documents notarized and apostilled by foreign nationals must be provided.

Step 2: DIN

If you want to serve as a director for an organization, you have to obtain a Director Identification Number (DIN). Directors must supply DIN, which must be included on the registration form.

Step 3: Name Approval

To obtain a distinctive business name, start by filling out the SPICe+ Part A form. This comprises identifying the main industrial activity division, determining the company type, class, category, and subcategory, and providing a thorough business description. Two names need to be suggested for approval.

Step 4: Drafting MOA and AOA

Write the important firm information in the Memorandum of Association (MOA) and Articles of Association (AOA). Get professional and subscriber digital signatures before presenting these documents to the MCA for approval.

Step 5: Incorporation Application

The MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN completing a successful document verification procedures.

Step 6: PAN and TAN Application

Step 7: Company Registration in 7 to 15 Working days

Required Documents for Register One Person Company

PAN CARD (Director)
ADHAR CARD (Director)
DSC (if you have)
PHOTO (Director)
TRADE NAME ( XYZ ENTERPRISES)
NATURE OF BUSINESS
LIGHT BILL (For Address)
RENT AGREEMENT (if office is rented)
PASSPORT/VOTING/DRIVING LICENSE
BANK STATEMENT (director)

FAQ

Which is better OPC or Pvt Ltd?

If you anticipate significant growth or wish to bring in more shareholders, Private Limited Company. Allows for more straightforward conversion and expansion. If you foresee remaining a single-owner business without the need for additional shareholders, OPC may be a more suitable option.
Who is eligible for OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
Can we convert OPC to Pvt Ltd?

OPC can be converted into a Private Limited Company with a minimum of 2 members and 2 directors.
Is OPC a private company?

An OPC is incorporated as a private limited company
Can OPC do multiple business?

Can OPC do multiple business? you can run four different businesses under one OPC. All the four business activities should be same or in the same industry. For Example: If you are a manufacturer of clothes then you can manufacture the clothes under one name, and can have multiple stores with different brand name to sell the same.
What is the turnover limit for OPC?

One person company is suitable for small companies where the turnover is not likely to cross Rs. 2 Crores, and the maximum amount of capital is limited to Rs. 50 Lac. An OPC can have more than one director.
What is the minimum capital of OPC?

The paid-up capital requirement for starting One Person Company is ₹1 lakh in India.
OPC need GST?

GST registration is mandatory if their annual turnover exceeds Rs. 20 lakhs for services or Rs. 40 lakhs for goods.