The revolutionary concept of ‘One Person Company’ (OPC) is a new form of business, introduced in India by 2013 through the Companies Act 2013 to support the entrepreneurs who on their own are capable of starting and running a business, and thereby allowing them to create a single person economic entity.
There can only be one member as the head in business under the concept of OPC, while a minimum of two members are required for incorporating and running the Private Limited Company. OPC is a single separate entity from its members, and only belongs to one person. OPC offers a limited liability protection for its shareholders.
OPC will give the rising young businessmen all advantages of a company like taking credits, liability, bank loans and legal protection for business as a separate legal entity. Though this concept is new in India it is a very successful form of business all around the world.
There can only be one member as the head in business under the concept of OPC, while a minimum of two members are required for incorporating and running the Private Limited Company. OPC is a single separate entity from its members, and only belongs to one person. OPC offers a limited liability protection for its shareholders.
OPC will give the rising young businessmen all advantages of a company like taking credits, liability, bank loans and legal protection for business as a separate legal entity. Though this concept is new in India it is a very successful form of business all around the world.
Features of One Person Company (OPC)
The following are the important features of One Person Company (OPC):
• OPC has only one person as the head of the business.
• OPC can only be Private Limited Companies.
• OPC minimum paid up share capital by the member is Rs. 1,00,000.
• OPC should give the name of the nominee person in the memorandum, after consulting him/her.
• The notice by the nominee shall be filed with the Registrar at the time of establishment along with the Memorandum and Articles (M&A).
• The nominee can withdraw his consent any time.
• In case of the death of the nominee, any other person can step up and become the new member.
• OPC can hire at max up to 15 directors, while a minimum of one director should always be appointed.
• Cash flow statements may not be included in the financial statements of OPC.
• Within a period of 6 months from the closure of financial year, OPC should file a copy of the financial statements with the Registrar.
• OPC does not need to hold any Annual General Meeting (AGM) once a year.
The following are the important features of One Person Company (OPC):
• OPC has only one person as the head of the business.
• OPC can only be Private Limited Companies.
• OPC minimum paid up share capital by the member is Rs. 1,00,000.
• OPC should give the name of the nominee person in the memorandum, after consulting him/her.
• The notice by the nominee shall be filed with the Registrar at the time of establishment along with the Memorandum and Articles (M&A).
• The nominee can withdraw his consent any time.
• In case of the death of the nominee, any other person can step up and become the new member.
• OPC can hire at max up to 15 directors, while a minimum of one director should always be appointed.
• Cash flow statements may not be included in the financial statements of OPC.
• Within a period of 6 months from the closure of financial year, OPC should file a copy of the financial statements with the Registrar.
• OPC does not need to hold any Annual General Meeting (AGM) once a year.
Steps to Incorporate One Person Company (OPC)
The following steps are important to incorporate under the OPC:
• Get the Digital Signature Certificate (DSC) for the Directors of the Private Limited Company.
• Get the Director Identification Number (DIN) for the Directors of the Private Limited Company.
• There should be a unique company name and send the application to the Ministry of Corporate Office to check availability.
• Memorandum of Association (MOA) and Articles of Association (AOA) should be drafted.
• Electronic registration for various other documents including MOA & AOA.
• Pay the fee to the Ministry of Corporate Affairs.
• Inspection of documents at Registrar of Companies (ROC).
• Certificate of incorporation from the Registrar of Companies.
The following steps are important to incorporate under the OPC:
• Get the Digital Signature Certificate (DSC) for the Directors of the Private Limited Company.
• Get the Director Identification Number (DIN) for the Directors of the Private Limited Company.
• There should be a unique company name and send the application to the Ministry of Corporate Office to check availability.
• Memorandum of Association (MOA) and Articles of Association (AOA) should be drafted.
• Electronic registration for various other documents including MOA & AOA.
• Pay the fee to the Ministry of Corporate Affairs.
• Inspection of documents at Registrar of Companies (ROC).
• Certificate of incorporation from the Registrar of Companies.
Advantages of One Person Company (OPC)
• OPC enjoys separate single legal entity.
• OPC enjoys uninterrupted existence i.e. it has a ‘perpetual succession’ that is continued until it is dissolved.
• OPC can borrow funds more easily and can accept funds from the public.
• OPC is limited by shares and these shares can be transferred to another person easily.
• OPC can own properties in its own name as the company is a juristic person.
• OPC is responsible for a limited amount of debts of a company.
• OPC enjoys separate single legal entity.
• OPC enjoys uninterrupted existence i.e. it has a ‘perpetual succession’ that is continued until it is dissolved.
• OPC can borrow funds more easily and can accept funds from the public.
• OPC is limited by shares and these shares can be transferred to another person easily.
• OPC can own properties in its own name as the company is a juristic person.
• OPC is responsible for a limited amount of debts of a company.
Impact of OPC in Indian Entrepreneurships
The concept of One Person Company (OPC) was brought to India in 2013 under the Companies Act 2013. The concept is still very new in Indian entrepreneurships and revolutionary, it will take time for such a concept to settle down in the minds of the new leaders. Though we are very sure this concept will have a sparkling future and will be embraced as another successful plan.
Small entrepreneurs will emerge in Indian entrepreneurship, and all the new entrepreneurs will hold a bright future of the country in their hands. The investors will be dealing with a single member to establish a relationship with the company which removes disparities for business to grow. In the upcoming few years OPC concept will widely be used by the new entrepreneurs for effective and easy style of business. There will be a good investment from foreign companies as well as the multinational companies which will help in strengthen the economical structure of India. OPC is the future big thing in India, and will be improving the economical condition of India.
The concept of One Person Company (OPC) was brought to India in 2013 under the Companies Act 2013. The concept is still very new in Indian entrepreneurships and revolutionary, it will take time for such a concept to settle down in the minds of the new leaders. Though we are very sure this concept will have a sparkling future and will be embraced as another successful plan.
Small entrepreneurs will emerge in Indian entrepreneurship, and all the new entrepreneurs will hold a bright future of the country in their hands. The investors will be dealing with a single member to establish a relationship with the company which removes disparities for business to grow. In the upcoming few years OPC concept will widely be used by the new entrepreneurs for effective and easy style of business. There will be a good investment from foreign companies as well as the multinational companies which will help in strengthen the economical structure of India. OPC is the future big thing in India, and will be improving the economical condition of India.
One Person Company (OPC) easy registration by LegalRaasta India
LegalRaasta has made it simpler for registering yourself under the One Person Company in India by following these simple series of steps:
• Fill the OPC registration form that is available on the official site of Legal Rasta India.
• Get the unique digital signature for the company under 3 working days.
• Verification and approval within 6 working days
• LegalRaasta promises you to support you with any problems that arise in the short process even with the documents.
• Fill the OPC registration form that is available on the official site of Legal Rasta India.
• Get the unique digital signature for the company under 3 working days.
• Verification and approval within 6 working days
• LegalRaasta promises you to support you with any problems that arise in the short process even with the documents.
Documents you require for registration:
• PAN Card copy of the nominee
• Passport size photographs
• Copy of rent agreement (if rented)
• Copy of voter ID or aadhaar card
• Water or electricity bill
• Copy of property papers if any
• Landlord NOC
• PAN Card copy of the nominee
• Passport size photographs
• Copy of rent agreement (if rented)
• Copy of voter ID or aadhaar card
• Water or electricity bill
• Copy of property papers if any
• Landlord NOC
In a few steps you can easily register for OPC online which is made very simple by LegalRaasta India.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online, Copyright Registration, Patent Registration, Trademark Registration.
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