Question 1

What is a One Person Company and how is it different from a sole proprietorship?

Accepted Answer

An OPC is a legally registered company under the Companies Act, 2013. It is a separate legal entity from its owner, meaning the company can own assets, enter contracts, and take on liabilities in its own name independently of you. A sole proprietorship has no such separation; you and the business are legally the same person, meaning your personal assets are at risk if the business faces financial trouble. OPC gives you the structure of a company with the simplicity of solo ownership.

Question 2

Can I register an OPC while I am employed full-time?

Accepted Answer

Yes. Many founders incorporate an OPC while holding a full-time job. However, review your employment contract first, as some agreements restrict employees from running competing businesses or holding directorship positions. If your business is in a different field or your contract allows it, there is no legal restriction under the Companies Act.

Question 3

Is a physical office required for OPC incorporate?

Accepted Answer

Yes. A physical address in India is mandatory as the OPC's registered office. This can be a residential address (your home address is acceptable). You need to submit a utility bill for the address and an NOC from the property owner. Virtual office addresses are accepted in most locations provided a proper NOC is obtained.

Question 4

Who can be a nominee in an OPC? What is their role?

Accepted Answer

Any Indian citizen who is a resident in India can be a nominee. They cannot already be a member or nominee in another OPC. The nominee's role is purely protective - they step in to manage the company only if the member becomes incapacitated or passes away. The nominee has no ownership stake, no operational role, and no financial liability while the member is active. Nominee consent is formalized through Form INC-3 at the time of incorporation.

Question 5

Can NRIs register an OPC in India?

Accepted Answer

Yes. Since the Companies (Amendment) Act, 2020 (effective April 2021), NRIs who hold Indian citizenship are eligible to be the sole member of an OPC. The nominee must be an Indian citizen and resident. At least one director must have resided in India for 120 or more days in the previous financial year. NRI documents must be apostilled or notarized at the Indian Embassy.

Question 6

How long does it take to get a DIN?

Accepted Answer

Director Identification Number (DIN) is allotted as part of the SPICe+ Part B filing. It is issued simultaneously with the Certificate of Incorporation once MCA approves the application. The DIN approval typically happens within the same 3-7 working day MCA review window.

Question 7

What happens if my company name gets rejected by MCA?

Accepted Answer

MCA may reject a name if it closely resembles an existing registered company, conflicts with a trademark, or violates MCA naming guidelines. CorpE's team checks your proposed names for compliance before submission. If a name is still rejected after filing, we re-evaluate the naming rules, suggest compliant alternatives, and resubmit at no additional cost.

Question 8

Do I need a Chartered Accountant to register an OPC?

Accepted Answer

There is no legal requirement for a CA to be involved in the incorporation itself. However, MCA rules require that a Practicing Company Secretary or CA certify certain forms. CorpE's team includes qualified professionals who handle all certifications and legal verifications as part of the service, so you do not need to arrange this separately.

Question 9

What are the annual compliance requirements for an OPC?

Accepted Answer

Every OPC must file INC-20A (Commencement of Business Certificate) within 180 days of incorporation, AOC-4 (Annual Financial Statements) with ROC within 180 days of the financial year end, and MGT-7A (Annual Return) with ROC within 60 days of the financial year end. The company must also maintain statutory registers and board meeting minutes and get accounts audited by a registered Chartered Accountant.

Question 10

Can I convert my OPC into a Private Limited Company later?

Accepted Answer

Yes. OPC to Private Limited Company conversion is a defined MCA process. You can convert voluntarily at any time, especially when you want to bring in co-founders, raise investor capital, or issue ESOPs. The 2021 amendment removed the mandatory conversion threshold that previously applied.

Question 11

What post-incorporation steps are mandatory for an OPC?

Accepted Answer

After the Certificate of Incorporation is issued, you must file INC-20A (Commencement of Business) within 180 days, open a company bank account and deposit the declared share capital, apply for GST if turnover exceeds the threshold or if you have interstate transactions, optionally register for MSME benefits, and maintain statutory registers and board meeting minutes.

Question 12

What is the difference between authorized share capital and paid-up capital for an OPC?

Accepted Answer

Authorized share capital is the maximum amount of capital your OPC can raise through share issuance as stated in the MOA. Paid-up capital is the actual amount received from the shareholder (which is you as the sole member). There is no minimum paid-up capital requirement. Most OPCs are incorporated with Rs 1 lakh in authorized capital.

Setup Your One Person Company in India — Online, Hassle-Free,and Fully Guided

Setup Your One Person Company in India — Online, Hassle-Free,
and Fully Guided