According to Companies Act 2013, section 2(62), One Person Company is a company which has only one person as a member. The act also clarifies one person company as a private company. It is a new form of business introduced by the Companies Act, 2013. It is introduced for the potential entrepreneurs who want to enter into the corporate world by registering as a one person company.
At the initial stage you just need one Director and a Shareholder to create one person company which you can further increase to a maximum of 15 shareholders. An important aspect of one person company is that only one person is required to create this type of company as compared to the requirements of a private limited company or an LLP where minimum two persons are required.
Who can register for a One Person Company?
Following are the conditions to incorporate a One Person Company :-
The person must be a resident of India (should have resided in India more than 182 days).
Their minimum authorized capital should be Rs.1,00,000.
A nominee should be appointed by the promoter during incorporation.
The person must not be a minor.
If the paid up share capital for an OPC exceeds Rs. 50 lakhs the company should be converted to a Pvt. Ltd. Company
What are the documents required for one person company?
PAN card of the owner
A passport sized photograph
A copy of Aadhaar Card / Voter ID card
Property papers- if its their own property
Copy of rent agreement and landlord NOC if its a rented property
Electricity bill /Water bill / Telephone bill / latest Bank statement of business residence.
Benefits of one person company
One person company (OPC) is a new milestone in the Indian corporate world, it has a number of benefits. Some of them are:-
A one person company has a perpetual existence that is the company will continue to exist irrespective of change in its members. It will continue to run until it is legally dissolved which is not the case in terms of partnership firm or sole proprietorship.
The liability of sole proprietorship and partnership firms are unlimited whereas the liability of one person company is limited. If the funds in the business are not enough no one can touch your personal assets. This will encourage the entrepreneurs to undertake more risk.
Opportunities for new entrepreneurs
If you are new to the corporate world and do not want others to interfere in your business, you can easily form a one person company as it is a great option for potential entrepreneurs who want to save their personal assets.
For compliances compared to private limited companies, the compliance requirements of one person company is less.
You can convert one person company to a private limited company easily. The conversion can be compulsory if the paid up capital becomes more than 50,00,000 or it can be voluntary. In this case, it is to be noted that there is a lock-in period of 2 years if you want to convert your one person company to a private limited company voluntarily.
Find the Company registration menu and select the One Person Company option and fill in all the details.
Make a payment for your application.
After submission, our executives will process your application.
You will receive your OPC Registration via your registered email-id
If you're willing to start a business and do not want to involve others, you can go for a One Person Company (OPC) Registration. There are various privileges that are enjoyed by a one person company under The Companies Act.
Filinglounge will help you to register your company as an OPC. You can connect with our team for the registration process and other details.
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