One Person Company
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One Person Company comes with various benefits like limited liability, easy to form, continuous existence, and greater credibility. Obtaining OPC registration is a process as it only requires the abidance of a few requirements.
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Cognizant Advisors is an online business compliance platform that helps entrepreneurs and other individuals with various, registrations, tax filings, and other legal matters.
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Introduction
What is One Person Company?
One Person Company Registration can effortlessly be attained under the victuals of the Companies Act, 2013. One Person Company comes with colorful benefits like limited liability, easy to form, nonstop actuality, lesser credibility. carrying OPC enrollment is any process as it only requires the abidance of many conditions.
One Person Company point is similar that it has only one shareholder who owns 100 stake of the company. To maintain the character of infinity, the appointment of the designee is mandatory, who’ll take the place of the proprietor in case of death or his incapability. One- person company is a type of Private Limited Company.
Benefits
Benefits of One Person Company Registration
Separation of Management and Ownership
Indeed if the OPC is possessed by sole labor force, the proprietor may appoint a director owing up to the responsibility to operate and run a company. The functional duties are assigned to the director( s) whereas the member would be suitable to cost gains channelizing sweats towards other businesses. still, in One Person Company, the shareholder holds complete control over being a stakeholder.
Limited Liability of Owners
One of the benefits of registering OPC falsehoods in the separate legal reality of the company where the liability and scores aren't charged over the particular means of the sole member. The liability of a member is limited to the overdue quantum of the capital subscribed by the member.
Separate Legal Existence
A One Person Company would gain the status of a separate legal entity. so OPC enrollment ensures that the entity is separate from the proprietor, unlike a procurement establishment. OPC can enjoy the means in its own name and enter into a contract with the parties. The conduct of the company are independent of the proprietor.
Lower Compliance Requirements
A Single Person Company is served with an impunity to numerous obediences unlike a private company. obediences like holding General and Board Meeting,etc. aren't applicable to OPC. still, Board Meeting must be held if further than one director is on Board.
Process
One Person Company Registration In Easy Steps
One Person Company Name Format and Formulation
Unique Name
One Person Company name should be unique as it forms the company brand, rather a chased word.
Business Object
The OPC name format shall have the alternate part of name suggesting the business exertion of the company.
Constitution Type
Name of the company must end with “(OPC) Private Limited” as a suffix.
Document Checklist
Documents required to Registration
Business Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
PAN Card
PAN Card of shareholder, nominee, and Directors.
Photograph
Latest Passport size photograph of Shareholder, Nominee and Directors
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.
Rent Agreement
Rent Agreement of the registered office should be provided, if any
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Faq
Frequently Asked Questions (FAQ)
Below mentioned are the pre-requisites to register an OPC in India:
1. The shareholder must be individual and Indian resident
2. At least one director is appointed, who shall be an Indian resident
3. A nominee who is above the age of 18 years and Indian resident must be appointed as Nominee on registration
4. A place of business must be provided as the registered office address of OPC.
It is required to convert an OPC into a Private or Public Company when the paid-up capital of the OPC exceeds 50 lakh Rupees, or the Average Annual Turnover during the relevant period exceeds 2 Crore Rupees. The mandatory conversion will take effect irrespective of the period of existence of OPC.
(Note: Cognizant Advisors in shall only take the accountability of the Accounting Service provided by them but however shall help in appointment of Independent Auditor for your business.)
A One Person Company is a single owner business akin to a Proprietorship Firm. However, unlike a proprietorship, the liability of the sole shareholder of an OPC is limited to the unpaid amount of the capital that he has subscribed to.
Moreover, unlike a proprietor, the sole shareholder of the OPC does not get involved in the management of the business, as the management of the business is controlled by the director appointed by the shareholder. We have prepared a comprehensive and detailed comparison table for all forms of businesses, for your better understanding.
Only an individual can become a member of OPC. One needs to be an Indian resident above the age of 18 years to be eligible to form One Person Company. To refer one as an Indian resident, he/she must have spent at least 182 days in India in the immediate previous calendar. An additional condition is that a person can become member of only 1 OPC at any time during or after registration.
Daily transactions of the business are recorded in the Books of Accounts of the Company by the Accountant/s. The Accounts hence recorded are verified by an Independent Auditor to make sure that no statutory compliance are missed and provide an Audit Report for the same.
(Note: LegalWiz.in shall only take the accountability of the Accounting Service provided by them but however shall help in appointment of Independent Auditor for your business.)
