One Person Corporation (OPC)
One individual can establish a One Person Corporation (OPC) and serve as both the company's director and shareholder. Despite the fact that there may be several owners, there can only be one shareholder.
This is registered in accordance with the Ministry of Corporate Affairs compliance and regulatory norms (MCA).
In order to encourage business owners who, on their own, are capable of founding a company, the Companies Act 2013 defined the definition of One Person Company in India. This allows business owners to form a one-person economic organisation.
Advantages of OPC
One of the main benefits of a One Person Corporation (OPC) is that it only needs one member, as opposed to a Private Limited Company or Limited Liability Partnership, which needs at least two members to be established and operated (LLP).
- · Only one Director is required to create an OPC.
- · Section 173, which specifies that a limited company will have at least four board meetings each year, is not applicable to OPCs.
- · The provisions and regulations set out in Section 98 and Sections 100 to 111 relating to general meetings are also not applicable to OPCs.
- · The OPC also enjoys relaxations and exceptions to several other legislative, governance and regulatory conditions.
- · The compulsory rotation of the auditor after each five-year cycle is also not applicable to the OPC.
DOCUMENTS REQUIRED FOR OPC PRIVATE LIMITED COMPANY IN INDIA :
- Proof of identity of the shareholder cum director & one Nominee ie. (Passport/DL/Aadhar Card/Voter Id)
- Proof of address of the shareholder cum director & one Nominee Bank Account Statement/Electricity Bill/Mobile Bill
- PAN Card of the shareholder cum director & one Nominee
- Utility Bill of the proposed office i.e. proposed registered office for the company
- A NOC (No Objection Certificate) from the landlord where the office of the company will be situated
- Duly signed DSC Form of the director of the proposed company.
FAQ
1. What's a OPC private limited company?
One Person Company (OPC) may be created with only one person, serving as both the director and shareholder of the company. There can be more than 1 owner, but not more than 1 shareholder. This is registered in accordance with the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).
The definition of One Person Company in India was implemented by the Companies Act 2013 to help entrepreneurs who, on their own, are capable of starting a business by permitting them to develop a single person economic entity. One of the greatest benefits of the One Person Company (OPC) is that there can be only one member of the OPC, while a minimum of two members are required for the formation and management of a Private Limited Company or a Limited Liability Partnership (LLP).
2. Was there any requirement for the compulsory conversion of an OPC into either a private or a public company?
In the event that the paid-up share capital of the OPC exceeds fifty lakh rupees or that its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, the OPC must instantly convert itself into a private or public company.
3. Who is eligible to be a member of the OPC?
Only a natural person who is an Indian citizen and is resident in India shall be eligible to act as a member and nominee of the OPC. For the purposes set out above, the word "resident in India" shall mean a person who has resided in India for a period not less than one hundred and eighty-two days in the immediately preceding financial year.
4. Can a person creat more than One OPC ?
A person Can be a Member in only one OPC.
5. Who is unable to enter the One Person Company?
A minor shall not be eligible to become a member.
· Foreign resident
· The non-resident
· Any person who is restricted by contract
6. Is an office required to open a OPC company?
No You can open a business to your home address There is no need to have a commercial place to open a company
For registered office Address, need these documents
· Rent agreement with the current rental receipt (in case the premises are rented)
· House tax receipts (in case the premises are owned)
· Power bill
· NOC from the owner (Format will be exchanged until the company name has been approved)
7. What are the basic conditions for naming of OPC private Limited Company?
First, ensure that the
· name of the company is not identical to any other private limited company, OPC, LLP or public limited company.
· Additionally, verify whether the first is not a registered trademark taken by someone under the IP Act.
· Also, make sure that the name is not too generic to recognize.
· try not to use abbreviations or adjectives.
· When selecting the name make sure that the name will reflect the purpose of the company if the business is related to IT then the name should have any word like Software, technology, Technosoft, IT consulting.
· Name Should end with “OPC private Limited”
8. Is there any tax benefit to shape an OPC?
There is no specific tax benefit over any other type to the OPC. The tax rate is flat at 30%, other tax rules, such as MAT & Dividend Distribution Tax, apply as they do to every other type of business.
9. Can a NRI register a one-person company and on which conditions?
No, no person other than an Indian citizen or a resident in India could register a OPC anywhere in India. This means that a non-resident Indian (NRI) or a foreign national cannot establish an OPC in India.
10. IS FDI (Foreign Direct Investment) permitted in India for an OPC?
No, a OPC cannot take FDI in India.
11. What are the characterstics of Registered Companies?
· The company must continue to operate, no matter how many directors, officers and shareholders join or leave.
· Sue and Sued can be a company in its name.
· A legal entity such as a company has a distinct name from its owners or shareholders.
· Private limited companies take financial aid from banks and financial institutions but receive the approved interest rate.
· Unlike a person, a private limited company can buy, sell, possess, possess, enjoy and transfer property rights to any individual in its name.
.png)
