OPC means one person company it is registered under the rules and regulation of Companies Act, 2013. It is new concept introduced in companies’ act, 2013 in which an individual can also start a new private limited company. One person company in which a single owner can runs a company without appointing any other director. This concept of OPC is introduced in India for support entrepreneurs who want to open company as single owner. In One Person Company business owner operate a corporate entity with limited liability. Companies act, 2013 gives much relaxation to the one person company. In registration of one Person Company all numbers of shares are owned by sole member. Every One Person Company must nominate a nominee who will become the owner of the Company in case of sole Director/ member disabled or death. Nominee can be changed by the member after filing with registrar of companies. Also if One Person Company can cross an annual turnover of two crores Company must be converted in to private limited Company. One Person Company can voluntarily convert into private limited company after completion of two years of registration. OPC operate like other forms of company which registered under this act.
WHY TO GET REGISTERED?
- Single owner with limited liability.
- Perpetual succession until it’s legally dissolves.
- Easily fund available.
- Registered form of business with single owner.
One Person Company registration process:
- Documents Preparation.
- Apply for Digital signature.
- Apply for DIN (Director Identification Number).
- Apply for name approval.
- Drafting of MOA and AOA.
- Application Forms filing with MCA.
- Upload documents.
- Fee payment.
- Incorporation certificate issued by MCA.
- Single owner/ shareholder.
- Separate legal entity.
- Perpetual succession.
- Limited liability.
- Easily share transferability.
- Buy and sell any assets on own name.
- Inter in agreement with any other party.
- Treated as artificial judicial person.
- High tax rate i.e. 30% of net profit.
- Turnover not goes beyond 2crores, after that conversion in private limited company is compulsory.
- Costly maintenance.
- High compliances.
- Winding up is possible only as per Companies Act.
Documents required for One Person Company Registration:
- Pan card of owner and nominee.
- Adhar Card/ Voter ID card of owner and nominee.
- Photograph of owner.
- Contact details of owner and nominee.
- Bank statement of owner and nominee.
- Electricity Bill/ gas bill for registered office address.