What is One Person Company (OPC) | OPC Registration
What is One Person Company?
As the name suggests, “ One person company ”, is a company that is incorporated by a single person. In an OPC, an individual promoter has complete authority over the firm. It means, in OPC, only one person is the shareholder and director of the company (though, the nominee of the director would be present with no authority until the real director fails to get into the contract). It is also known as a one-man company.
As per the rules of the Companies act 2013, a person who is an Indian resident and citizen of India, he/she is eligible to incorporate a One Person Company.
People always get confused about the difference between OPC and Sole Proprietorship. Let’s take a look, at the difference between a One person company and a sole proprietorship company.
An OPC has to convert into a private limited company or public limited company when
- Its annual hattrick turnover will be Rs 2 crore.
- Over or acquired paid-up will be Rs 50 lakh and above
Additionally, under the above-mentioned circumstances, an OPC needs to convert into a private limited company or a public limited company within 6 months.
Difference between one person company and a Sole Proprietorship
They both look similar, as both of the companies have only one member. So, what makes them both different?
In One person company, a single person runs a company in limited shares. On the other hand, in Sole Proprietorship, a company is owned by an individual, but there is no distinction between the owner and the business.
Apart from this, OPC private limited companies have to obey specific rules and regulations that are mentioned in the Memorandum of Association (MoA) and Article of Association (AOA) which provides the guidelines for mutual rights and duties.
Who is not eligible to form a One person company ?
- A minor (an age that legally distinguishes childhood from adulthood).
- A foreign citizen (Non-Indian Resident).
- An individual who is declared unfit by the company’s law.
Features of OPC Company :
- One member - In OPCs, they have only one member, unlike any other private companies.
- No perpetual succession - If the only member of the company dies, it will result in as, the nominee can either choose or reject to become the nominee of the company.
- Private Company - Under Section - 3(1) c, OPCs are considered private companies, this act says that only one person can form a company for a legitimate purpose.
- Various benefits - OPCs enjoy various advantages as compared to any other company.
In section - 8, it is stated that OPCs cannot voluntarily convert into other types of companies, as section - 8 objects to the conversion of OPCs.
Advantages of One Person Company:
- OPC is a separate legal entity which means it has similar rights to a person. For instance, it can enter into a contract, sue someone as well as can be sued.
- OPC will continue to exist despite the death, bankruptcy, change in membership, etc.
- This form of company is appropriate for small businesses.
- Provides tax liability to the business.
- It is unchallenging to manage an OPC.
- Provide complete control of the company to a person.
- They have separate properties.
Documents Required For OPC Registration :
- Memorandum of Association (MoA) and Article of Association (AOA).
- You are required to appoint a nominee, in case the director and member dies or is unfit to execute his duties. For this, the permission of the director or member would be required in Form INC-3 along with PAN and Aadhar card.
- You are required to submit the declaration and consent from the director in Form INC-9 and DIR-2, respectively.
- Proof of the principal office along with evidence of ownership and NOC of the owner.
- A declaration certification by the professional reflecting that all the compliance has been completed.
Our Role in One-Person Company Registration :
- Our OPC registration consultant will guarantee to provide you with our complete support throughout the process of one-person company registration online.
- Our OPC registration consultant will assist you in the process of documentation for OPC incorporation.
- Our OPC consultants will help you keep the track of your OPC incorporation application.
- Our OPC registration consultant will assist you in finding the appropriate name of the company for OPC registration online.
- Our OPC registration consultant will coordinate with officials for proper follow-ups and acknowledgment.
- Our OPC registration consultant will ensure to provide you with the best possible solution to your concerns regarding One Person Company registration online.
To culminate, one-person company registration online could be perplexing which could further result in a delay in the registration process. That being so, it will only affect the owner of the firm/company.
Thus, to avoid such consequences you need professional assistance which JR Compliance can provide you. We have been providing our exemplary OPC registration consultant services for the past 8+ years which reflects that we are prominent in providing high-standard OPC registration online services.
Therefore, to avail of our services contact us immediately for OPC registration online/one-person company registration online.