One Person Company(OPC)

One Person Company

One Person Company in India is a new concept that has been introduced with the Company's Act 2013. One Person Company in India is incorporated by a single person. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business then he or she should only opt for a sole proprietorship. According to Section 2 (62) of the Company's Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company. A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.

OPC PAN Application

The first step after incorporation of any corporate legal entity is obtaining OPC PAN card. PAN can be applied online after incorporation to receive the PAN allotment letter. The letter must then be signed by the OPC Director, sealed with company rubber stamp and couriered to the NSDL office. PAN Card will be issued in about 15 days after receipt of the hard copy PAN application from the applicant.

Opening OPC Bank Account

The process for opening bank account for a One Person Company is relatively simple when compared to proprietorship bank account opening. As a OPC is a corporate entity, no other additional tax registrations or documents are required to open a bank account for a OPC. As per Reserve Bank of India’s KYC norms, the following are the documents required to open a current account in the name of a OPC:

• Self-attested copies of OPC Certificate of incorporation
• Memorandum of Association of OPC
• Articles of Association of OPC
• Resolution to open bank account for Company
• Copy of PAN allotment letter;
• Copy of the telephone bill;
• Identity proof of the Director

Documents submitted for opening of bank account must be self-attested with seal of the company. Hence, its important to obtain company seal and company letterhead after incorporation of the OPC.

Appointment of Auditor

All companies are required to appoint the first Auditor of the Company, a practising Chartered Accountant within 30 days of incorporation. In case of OPC as well, an Auditor must be appointed by the Director of the OPC for auditing of financial statements of the company.

OPC Annual General Meeting

All companies other than a OPC is required to hold an annual general meeting each financial year with not more than fifteen months elapsing between the date of one annual general meeting of a company and that of the next. However, in case of a OPC where there is only one director on the Board of Directors, then it is sufficient for the resolution by one Director be passed and entered in the minutes-book. The signed and dated resolution by Director of a OPC is deemed to be the meeting of the Board of Directors for all the purposes under the Companies Act. Also, provisions relating to quorum for meetings of Board does not apply to a OPC where there is only one Director on its Board of Directors.

OPC Financial Statements

All companies are required to prepare and file with the ROC, the following financial statements:

• Balance sheet as at the end of the financial year;
• Profit and loss account;
• Cash flow statement for the financial year;
• Statement of changes in equity, if applicable;
• Explanatory note forming part of any document.

In case of a One Person Company (OPC), small company and dormant company, the requirement for cash flow statement has been removed. So, a OPC does not need to prepare or submit a cash flow statement as a part of its financial statements.