What is OPC and how can I apply for the name of my OPC?
Hello @Dixita
One Person Company (OPC) is a company where there is only one members and one director. Similar to a Company, a One Person Company is a separate legal entity from its promoter and it is easy to incorporate. In order to reserve the name for an OPC, one must file the web-form SPICe+ Part A on the MCA Portal.
You can read the rules to select name of a Company here:
Hope this helps!
What is SPICe+? Can I incorporate an OPC through SPICe+?
Hello @Dixita
SPICe+ is an integrated Web form for incorporating a company offering 10 services. Through SPICe+, you can apply for the name of your company, incorporation of the company, DIN of the directors, PAN and TAN registrations, PF and ESI registration of the company, GST registration, Professional Tax (only in Maharashtra), open a bank account. One can incorporate any kind of Company with SPICe+ be it Private Limited Company, Public Limited Company, OPC, Section 8 Company, etc.
You can learn about the process of incorporating a company through SPICe+ here:
Hope this helps!
Which documents are required to incorporate OPC?
Hey @Dixita
To incorporate an OPC, various documents like self-attested copies of PAN card, Aadhaar Card, Identity Proof, Address Proof, etc., are required of the proposed director and the nominee.
You can find the complete checklist here:
Hope this helps!
Can Director be changed in OPC after 6 months? Also, can any Individual CS sign the INC-4 after death of director to change the nominee and member?
Hello @Paritosh_Trivedi
The first director in OPC shall hold the office until the holding of a general meeting. However, the first director can be re-appointed or another person can appointed on that meeting.
An individual CS does not have the authority to change the nominee. After the death of a member, the nominee will become the new member and only that new member will appoint another nominee.
You can refer to the procedure of change in nominee of an OPC here:
Hope this helps!
When should an OPC be compulsorily converted to a private company?
Hey @Dia_malhotra
It is mandatory for an OPC to convert into a Private Limited Company within 6 months if it surpasses the below-given parameters:
- Paid up share capital of an OPC exceeds Rs.50 lakhs and
- Average annual turnover of immediately preceding three consecutive financial years exceeds 2 crores.
You can read the entire process of conversion of an OPC to Pvt Ltd Co. here:
Here are the key differences between a Private Limited Company and an OPC
Hope this helps!
Hey Hi
Greetings of the day,
What if I want to convert the OPC into PVT LTD but the time frame of 2 years has not been surpassed nor any other condition of Capital Clause or Turnover has not crossed but still it needs to be converted , is there any alternative or any rules where you can convert before time?
Hello @CSDEV999
Conversion of OPC to any other Company is only possible by way of:
- Voluntary Conversion: If two years have surpassed since incorporation, an OPC can voluntarily convert.
- Compulsory Conversion: If paid up share capital exceeds Rs. 50 lakhs or average turnover exceeds Rs. 2 crore.
Hence, in your case it is not possible to convert the OPC to a Pvt Ltd Co., since none of the above-mentioned conditions are satisfied.
Hope this helps!
does a director can get loan from OPC or give loan to opc?
Hello, @Private
As per Section 185, it prohibits loans, advances, etc. to Directors of the company or its holding company or any partner of such Director or any partner of such Director or any firm in which such Director or relative is a partner. Whereas for giving a loan, yes a public company can accept a loan from its directors, but not from the relative of the director.
I want to know about OPC? can OPC take loan from director?
Hey @Private
A One Person Company (OPC) is a separate legal entity from its promoter and it is easy to incorporate. OPC allows a single member to Incorporate and run a business.
Yes, a company can accept a loan from its directors, but not from the relative of the director.
You can read more about it here.
The compulsory conversion of OPC upon meeting the criteria of exceeding the minimum paid up capital and average annual turnover was removed in the Budget 2020-21 and subsequently via the Companies (Incorporation) Second Amendment Rules, 2021.
can you update your blog.
50 lakhs paid up capital and 2 cr turnover limit is removed.
Hello @Private
Thanks for pointing it out, we have made the changes.
can OPC become shareholder in private limited company?
Hello @Private,
As per the Companies Act 2013, any person can be a shareholder of a Private limited company and a person could mean an individual, body corporate, company or an association. Hence OPC can become a shareholder in a private limited company.
Hope this helps! 