One Person Company
(OPC)
One Person Company(OPC):
One Person Company is a novel idea in India, established with the Company Act 2013. In India, a One Person company is formed by a single individual. Before implementing the Companies Act 2013, a single individual could not start a business with a separate legal entity.
An OPC combines the characteristics of a company with the advantages of a sole proprietorship. The One Person Company feature means that just one shareholder owns the whole company. To retain the nature of perpetuity, the owner must choose a Nominee who will take his position in the event of his death or incapacity. In an OPC, a single promoter gets complete control of the company, limiting their contributions to the organization. As a result, the individual mentioned above will be the sole shareholder and director.
If an OPC has an average turnover of 2 crores or more or obtains 50 lakh or more paid-up Capital, it must be changed to a Pvt limited company or a public limited company within 2 Months.
Take your first -step with us at TAX BARR to build and register your business as One Person Company.
Benefits of One Person Company Registration:
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Separate Legal Existence
The One-person company's legal status will be granted a distinct legal entity. Unlike a sole proprietorship, such OPC registration assures that the business is separate from the owner. OPC can own the assets and enter into a contract with the parties in its own name.
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Lower Compliance Requirements
Compliances such as convening General and Board Meetings do not apply to OPC. However, if more than one director is on the Board, a Board Meeting must be held.
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Limited Liability
The director's personal assets are always safe in OPC, irrespective of the business or company's debts.
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Separation of Management and Ownership
With a Person Company, the shareholder has total power over stakeholders. Even though a single person holds the OPC, the owner can designate a director. The operational obligations are delegated to the director(s), whilst the member can earn money by directing efforts into other enterprises.
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Continuous Existence
When the proprietor dies, the sole Proprietorship ends because an OPC corporation has a separate legal identity it would pass on to the nominated director and continue to exist.
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Greater Credibility
Since an OPC must have its records audited yearly, it has more credibility with suppliers and financial institutions.
Documents required:
PAN CARD
PAN Card of shareholder,
nominee and Directors.
Identity Proof
Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.
Photograph
Latest Passport size photograph of Shareholder, Nominee and Directors
Business Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
DSC
DSC of director
required.
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Authorised & Paid up Capital
Amount of Authorised &
paid up capital
Personal Details
Mobile No &
Email
Other Details
Director Identification Number (DIN)
Memorandum of Association
Articles of Association