ONE PERSON COMPANY (OPC) REGISTRATION
The One Person Company is a company that has only one person as a member and director, as stated under the section 2(62) of the Companies Act, 2013.
OPC is a hybrid of Sole-Proprietorship and Corporate forms of business. It has been equipped with various concessions in compliance requirements under the Companies Act. It is a form of a company where the compliance requirements are lesser than a Private limited company. OPC registration is a very quick, simple and affordable registration.
What is One Person Company.?
A One Person Company (OPC) is formed when only one person serves as both the director and the shareholder of the business. Under the provisions of the Companies Act of 2013, this concept was introduced for the first time. Furthermore, an OPC is a type of sole proprietorship firm in the form of a corporation that gives a single person ultimate authority over a business while limiting his liabilities and responsibilities.
Benefits of Registration One Person Company (OPC)
- Minimum Capital:
Private limited companies do not require a minimum paid-up capital. It can be registered with a nominal amount of Rs.1,00,000 authorized share capital
- Lesser Compliance
The Companies Act, 2013 provides limited or lesser compliance to One Person Company. Less compliance means less paper, and it also takes less time to carry out such lesser compliance. The OPC need not show the cash flow and avails the benefit of tax availability too. Only the Director has to account book and annual returns.
- One Person Control
Since it is a single-person company, so the complete control remains in the hand of one person only. The decision-making becomes easy and quick as there will be no conflicting opinions, so the running and management of the Company will be easy.
- Easy to Expand :
The One Person Company is completely based on the sole ownership of the Company and a Centralised Management System that pushes the Company towards achieving significant growth and a bigger contribution to our country’s economy.
- No Legal Disputes
In One Person Company (OPC) there is no scope of Management dispute
- Benefits of Small Scale Industries
One Person Company avails the benefits provided to small-scale industries like easy funding, less compliance, loans at a lower interest rate, etc.
- Status of Private Limited Company
One Person Company must include in its name (OPC) Private Limited
- Less Income Tax rate
If your company is unique and has the potential to create larger employment opportunities, then you can register your OPC under the Start-up India scheme of the Government and take the Income Tax benefit for at least five years.
Eligibility Criteria for Registering One Person Company (OPC)
- A natural person who is a resident of India can form OPC
- Only with One Member can form One Person Company (OPC)
- An Individual can not form more than one OPC
- An Individual cannot appoint Nominee more than One OPC
- One Person Company must include in its name (OPC) Private Limited
- Prior condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.
- The name should be unique and should not be similar to any other existing company and trademark.
Documents Required for Company Registration
- Self-Attested Pan Card of Director and Nominee
- Self-Attested passport, Voter Id card, Driving License, Aadhar Card
- Director and Nominee shall provide Latest Bank Statement not older than Two Months
- Company Address: Latest Electricity Bill, Phone Bill, Gas Bill, not older than Two Months Can be used as proof of the registered office address
- Director recent passport size photo
- Director and Nominee email id and phone no