U P D A T E
Home / Uncategorized / ONE PERSON COMPANY

ONE PERSON COMPANY

ONE PERSON COMPANY

The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 which allows single founders to enjoy the status of a company. Forming a OPC helps to have full control over affairs of the business while keeping the liability limited. One of the biggest advantages of a OPC is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate. 
Every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Only a natural person, who is an Indian citizen and resident in India shall be a nominee for the sole member of a One Person Company.Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation. Legal suvidha Providers can help incorporate a One Person Company (OPC) in India.

   

WHY ONE PERSON COMPANY?


LIMITED LIABILITY

The liability of the shareholder is limited and personal assets are safe. The liability of the shareholder will only be limited to the unpaid subscription money in his name. OPC is a separate entity and there will be a true distinction between the promoter and the company.

SINGLE OWNER

There is only one owner who can act both as a shareholder as well as the director.

COMPLETE CONTROL

This leads to fast decision making and execution. Yet he/she can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.

LEGAL STATUS & SOCIAL RECOGNITION
One Person Company is a Private Limited Structure in the eyes of law, which gives suppliers and customers a sense of confidence in business.

SEPARATE LEGAL ENTITY

A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.

EASY COMPLIANCES

OPC is one of the easiest forms of corporate entities to manage. Very few ROC filing is to be filed with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM), so lesser compliance cost

PERPETUAL SUCCESSION

A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.

BORROWING CAPACITY

A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

EASY TRANSFERABILITY

Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

OWN PROPERTY

A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.

   

One Person Company Registration Process

 

Step 1 : Obtaining DSC (Digital Signature Certificate)

Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient.

   

   

   

Step 2 : Name Approval

Choosing a memorable and acceptable name is one of the important step in registering a company in India. An easy to remember name can make the company a household brand. 

   

   

Step 3 : Drafting MOA and AOA

Memorandum of Association (MOA) is a document that contains all the fundamental data which are required for the company incorporation. Articles of Association (AOA) is a document containing all the rules and regulations that govern the company. Registration.

   

Step 4 : Company Registration

The average time taken to complete a one person company registration is about 10 – 15 working days, subject to government processing time and client document submission.

      

   

   

   

 

Documents required for One Person Company incorporation

 

There are two different criteria for Registering a One Person Company

Firstly for the DIRECTORS & SHAREHOLDERS and the documents required are :

 

Secondly for the REGISTERED OFFICE and the documents required are :

 

Home     Register Now

About Edupur Society

Check Also

Private Limited Company

PRIVATE LIMITED COMPANY Private Limited Company is the most preferred business structure for Start-ups and …

Leave a Reply

Your email address will not be published. Required fields are marked *