Earlier a single person could not form a company, as private and public limited company requires more than one person to incorporate a company. OPC is the most recent form of business in India recommended by the companies Act, 2013. Only a single person is required to set up and start a company. One person company can easily be register under the laws of the companies Act without the complication of getting partners. The OPC is best suitable for small businesses where the turnover less than Rs. 2 crores. OPC Registration can have more than one director and at least one director should be Indian Resident.
As more and more Entrepreneurs are coming up to form OPC, One Person Companies are contributing to the development of the economy of India. An OPC incorporation can enjoy the benefits in different ways especially for banking loans, credits. It is a kind of a company that can be formed with lesser compliance requirements than that of a private company. So, if any businessman is looking to start his own business, he can easily and quickly register OPC without a network of people
Next, apply for digital signature (DSC) and identification number (DIN) for directors and OPC name approval. Name should be unique and should not be already used by any other business.
All the details provided for OPC registration are verified and also get approval for Name of OPC.
After name approval of the OPC, apply to obtain a certificate of incorporation for OPC by filling SPICE form along with appropriate documents..
Once OPC is registered you will get the certificate of incorporation. PAN and TAN numbers are also provided with the certificate of incorporation itself. Apply to open a bank account in the name of the business.
The following documents are required to register a sole proprietorship firm. Following list of documents are required for registration:
One Person Company provides limited liability, which is limited to the amount of the share you hold and the investment in the company. Due to limited liability directors, personal property is always safe.
Being a separate legal entity as per the law, OPC would exist in successive style and continue to exist.
As OPC is a company like a private company, it can raise funds via venture capital, financial institutions, angel investors, etc. An OPC can raise funds to gradually grow and convert a private limited company.
One Person company always enjoys an increased trust and credibility as it comes under the central government directly other mutual profit organizations.
One Person Company formation has less legal compliance involved as compared to other registration methods so that it allows focusing more on the improvement.
OPC is a mix of private company and sole proprietor firm. OPC is run by the companies act, 2013, and enjoys many exemptions and relaxations as compared to other entities.
A normalindividual who is a citizen and resident in India is qualified to apply as a member and nominee of an OPC company. Meaning of “Resident in India” is a person who stayed in India for not less than 182 days during the financial year.
Online procedure for OPC registration is similar to the other form of companies. SPICE form needs to be filled under companies act to register OPC.
Minors i.e. under the age of 18 are not eligible to be a member or a shareholder of OPC. Foreign Citizen. Non-Resident Indians. Person disabled to contracts.
The real name and the objective of the company can be different and the name of the company does not need to reflect the objectives. The name of the company could the abbreviated form of the name of the promoters etc. OPC name can be standard and not necessarily required to change with the change in business.
OPC can be intentionally converted to a private company by form INC-6. The conversion is mandatory when it crossed 2 crore turnover or 50 lac paid-up capital in any financial year.