ONE PERSON COMPANY REGISTRATION
The concept of One Person Company in India was introduced through the Companies Act 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (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 (LLP). Similar to a Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company – who will become the owner of the OPC in case the sole Director is disabled. Also a One Person Company 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 like all types of Companies. Therefore, it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation.
Thebizsolution is the market leader in company registration services in India, offering a variety of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration and Indian Subsidiary 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. Get a free consultation for one person company registration and business setup in India by scheduling an appointment with an Thebizsolution Advisor.
Reasons to Register a One Person Company
ADVANTAGES & BENEFITS
Eligibility for Startup India Scheme
To be eligible under Startup India Scheme the Startup must be registered as a Company under the Companies Act 2013 or LLP.
Limited Liability Protection to personal assets
Many times startups need to borrow money and take things on credit. In case of proprietorship, Partners personal savings and property would be at risk incase business is not able to repay its loans.
Easy to raise funds and loans
One person company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to normal Partnership firm or proprietorship.
Favorite Business structure for Investors
Investors love to invest in one person companies as it is well structured and less strings attached. Most important it is very easy to exit from a one person company.
Easy to attract Quality Team
For startups putting together a team and keeping them for long time is a challenge, due to confidence attached to one person company, it is easy to hire people as well motivate them with corporate designations.
Easy to Sell
One Person Company is easy to sell, very less documentation and less cost is involved in selling a one person company.
documents required for opc registration
Identity and Address Proof
Identity and address proof will be required for the main Director and nominee director of the one person company to be incorporated. PAN is a mandatory identity proof. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
Registered Office Proof
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
simple & transparent pricing
One of the Directors must be Indian Resident
DSC (Digital Signature Certificate) for one of the Directors / Partners
For OPC minimum 1 Shareholder & 1 Nominee
Minimum Authorised Share Capital Rs. 100,000 (INR One Lac)