Business Structure and Management An OPC must have only one member at all times, who is the sole owner and shareholder. It must appoint at least one director, who may also be a member. The company must have a registered office address in India for receiving official...

Balance Sheet The Balance Sheet provides a snapshot of the OPC’s financial position as of the end of the financial year. It includes details of assets, liabilities, and equity, showing how funds are deployed and sourced. Assets are categorized into current and...

Internal Financing The most straightforward method is to use retained earnings or profits generated from business operations. Profits can be reinvested into the business without any dilution of ownership or interest cost. This method is ideal for gradual and organic...

Internal Financing The most straightforward method is to use retained earnings or profits generated from business operations. Profits can be reinvested into the business without any dilution of ownership or interest cost. This method is ideal for gradual and organic...

Business Expansion and Reinvestment An OPC can reinvest profits back into the core business to support growth and sustainability. Reinvestment may include purchasing new assets, upgrading technology, hiring staff, or expanding operations. This is the most common and...

Eligibility and Declaration An OPC can declare and pay dividends out of its profits after providing for depreciation as per the Companies Act, 2013. Dividends can only be declared if there are sufficient accumulated profits or the current year’s profits. The...

Preparation of Financial Statements An OPC must prepare its annual financial statements by the Companies Act, 2013, and applicable accounting standards. The financial statements must include a Balance Sheet, Profit and Loss Account, and Notes to Accounts. Though a...

Capital from the Sole Member The primary source of capital for an OPC is the investment made by the sole member. This is reflected as paid-up share capital, which the member subscribes to at the time of incorporation or later. The member can inject additional funds...

Eligibility for Loans and Credit An OPC, being a separate legal entity, is eligible to borrow funds in its name. It can apply for business loans, working capital loans, term loans, and overdrafts from banks and financial institutions. Lenders assess the company’s...

No Minimum Capital Mandate The Companies Act, 2013, does not prescribe any minimum paid-up capital requirement for an OPC. An OPC can be incorporated with any amount of capital, even as low as ₹1. This provides flexibility and accessibility for small entrepreneurs and...