One Person Company
One person company is a organized form of proprietory business, governed by the ministry of corporate affaires , in such kind of business structure a single person can registered a company. This business structure gives wider exposure to single person
One person company will give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc all in the name of a separate legal entity.
Single entrepreneur person can manage his business on his own. It can have only one member at any point of time. It may have only one director but may increase the number of directors up to 15 .
Opc is the orgnized form of proprietorship business , the key difference between OPC and sole proprietorship is the way the liabilities are treated. For instance, in an OPC the promoter’s liability is limited in the event of a default or legal issues. Also one person can take a decision without waiting for other director’s consent and wasting of time and energy in convincing other directors can be avoided.
In OPC compliance burden is less as compare to limited or private limited company . Opc is a best option for small traders to explore their business . OPC will boost the confidence of small entrepreneurs”.
FEATURES OF PRIVATE LIMITED COMPANY
- One Person Company means a company which has only one member
- As per section 3 of companies act OPC is a private company for all the legal purpose with only one member
- All the provisions of private companies are applicable for OPC unless expressly excluded
- In case of OPC, though it is true that the One Person appears to be like sole proprietor his liability to the debtors of the Company is limited to the shareholding of the company and his personal assets are never attached for payment of the company’s liability, which in case of Proprietorship never happens.
- Only a natural person who was a resident of India in the previous year shall be eligible to form an OPC
- Body corporate, legal entities, association of persons, cannot form OPC
- OPC may be company limited by shares , limited by guarantee or unlimited company
- Opc can not operate the non banking financial activities business, investment activities of securities in body incorporates
- In case the paid-up share capital of an One person companyexceeds 50 lakh rupees or its average annual turnover of immediately preceding 3 consecutive financial years exceeds 2 crore rupees, then the OPC has to mandatorily convert itself into a private or public company. So it’s a business type only for the small business mans
- Appointment of nominee is compulsory for OPC registration ,
- In case of death of only member of OPC the nominee will be the next member of opc, its seems like perpetual succession feature company
Documents required for registering one person company
- Pan card of member
- Adhar card /Voter ID card/ Driving license/ Passport of member
- Latest bank statement/ copy of passbook /latest utility bill for member
- Latest utility bill & rent Agreement of premises to be used as registered office of company
- Occupation , email id , Phone no. of directors as well as shareholders
- Pan card, aadhar card /voter id/DL/passport of nominee
PROCEDURE OF REGISTERING A PRIVATE LIMITED COMPANY
- Filling Application for Reservation of name
- Apply for digital signature certificate
- Preparation and signing of incorporation documents
- Filling the incorporation form ( spice(32) MOA ,AOA)
- Wait for approval from MCA
- Generation of incorporation certificate