Online One Person Company Registration
(OPC) In India
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WHAT IS ONE PERSON COMPANY?
A one person company is a company which contains exactly one member.It is a separate legal entity from its promoter and the promoter has limited liability.
Entrepreneurs who are capable of starting a venture on their own can make use of one person company (OPC) in India. In one person company, there is only one shareholder who is an Indian citizen and Indian resident i.e. stayed in India for at least 182 days in the preceding year.
Shareholder nominates another person as a nominee in case of death or incapacity of the shareholder. One person company was introduced in the companies act 2013 to encourage self-employment.You can not incorporate more than one person company or be a nominee of more than one OPC. Rules of OPC company do not permit Non-Banking Financial Institutions.
An affidavit from every subscriber of the memorandum (i.e. members) and first directors, if any, that they have not been convicted of any offence in relation to the formation or management of any company, or have not been found guilty of any fraud or any breach of duty to any company during preceding five years.One Person Company in India is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder.
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DOCUMENTS REQUIRED FOR OPC REGISTRATION
- Identity proof of director and nominee(PAN card)
- Address proof of director and nominee(Aadhar card, Driving Licence, Electricity bill, Passport)
- Address proof of office (Rent agreement or sale deed, electricity bill, property tax receipt)
- NOC from landlord
- DSC and DIN of director
- Passport photo of director
ELIGIBILITY FOR ONE PERSON COMPANY REGISTRATION
- 1. A person is eligible for exactly 1 one person company.
- 2. A minor can not be a member or nominee
- 3. An OPC company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
- 4. If paid up capital of an OPC reaches over Rs 50 lakh or average turnover of consecutive 3 years reaches over 2 crores it must be converted into private or public limited company within six months.
ADVANTAGES OF ONE PERSON COMPANY
There is list of features and advantages of OPC Registration in India.
- Limited liabilities
OPC gives limited liability to business owner i.e.liability is limited to the amount you have invested. - Better than Sole Proprietorship:
A sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. - Easy transfer of ownership:
In a one person company, the ownership can be transferred by altering the shareholding, directorship and nominee director information. - Ability to own property:
A company can own property like buildings, godowns and can be considered a legal entity.
FAQS
OPC Registration process is mentioned above.
OPC Registration process is mentioned above.
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