As registration of companies is now a fully online process, physical presence is not mandatory once the documents as prescribed are filed online.

An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.

Only Indian residents can register an OPC, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs.

As a result of various measures taken by the Govt. of India and Ministry of Corporate Affairs a dedicated Central Registration Centre has been opened and this has resulted in completion of registration within 1-3 working days, subject to submission of requisite documents and workload of the Registrar.

Gazetted officer or Bank Manager attested copies of PAN card, any valid address proof (Passport / Voters ID / Driving License / Aadhar etc.) and a secondary address proof (Utility bill or bank statement).

There is no minimum capital requirement and the promoters are at liberty to choose the amount. The registration fee and stamp duty payable is based on the authorised share capital chosen by the promoters.

OPCs are required to be mandatorily be converted into private limited or public limited companies on crossing either a turnover of Rs. 2 crore or on induction of paid up capital exceeding Rs. 50 lakh.

Yes, just like a private limited company an OPC must appoint an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation.

No matter what the revenue is every company whether active or inactive has to mandatorily file the following documents annually:

• Income Tax return with IT Dept.
• Financial statements and Annual Returns with Registrar of Companies

Failure to do so within the time prescribed would invite additional fine which can go as much as 12 times the normal fee. Also the promoters stand a risk of being disqualified to act as a Director, in case of continuing defaults, in addition to penalties which run into lakhs of rupees.

Yes. Director(s) apart from the promoter could be inducted.

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.