Frequently Asked Questions for Registering an OPC

An OPC is a company that is incorporated by a single person.

The most remarkable difference between both is that a sole proprietorship forces unlimited liability on its member, whereas in the case of an OPC the member has limited liability. A sole proprietorship is not given the status of a separate legal entity like that of an OPC. Also, an OPC has a perpetual existence, unlike a sole proprietorship that gets dissolved on the death or the retirement of its members.

The member of an OPC should be a natural person who is a citizen of India. It is also pertinent to note that the member should also be a resident of India who has resided in India for not less than a period of 180 days immediately preceding the financial year.

Yes, the sole member of the OPC has to mandatorily elect a nominee at the time of registration of the company. The consent of the nominee is taken in Form INC-3.

No, a person can be a member of only one OPC at any given time. However, a member of an OPC is not forbidden from becoming a member of any other private company.

The OPC should conduct at least one board meeting every half of the calendar year and the time gap between the two meetings should not be less than 90days . The book of accounts is to be maintained. The financial statements must be subjected to regular audits. The income tax returns must be duly submitted. The financial statements in Form AOC-4 and the ROC Annual returns in Form MGT are to be furnished.

A citizen of a foreign country, a minor, A non-resident of India, any person who does not have the capacity to enter into contractual obligations is not eligible to become a member of an OPC.

An OPC is incorporated with a single member and a single director. Also, there can be a single member who can act both as the member and the director. An OPC can have a minimum of 1 director and a maximum of 15 directors.

DIN (Director Identification Number), DSC (Digital Signature Certificate), and PAN (Permanent Account Number) of the director and shareholder. Passport size photographs of the sole member and director. Identity and Address proofs of the shareholder and the director. Proof of address of the registered office of the OPC. The forms stipulated by the Companies Act, 2013.

Yes, an OPC can be converted to a private limited company by passing a resolution or can be converted mandatorily. The voluntary conversion is done after passing a resolution in the company. The voluntary conversion however cannot happen within 2 years after the incorporation of the OPC. The mandatory conversion takes place when the paid-up share capital of the company exceeds ₹50,000 · Three consecutive financial years have a yearly turnover of more than ₹2 crores Under such circumstances, the OPC is converted to a public or a private limited company within 6 months from the date on which the above stated conditions have arisen.