One Person Company
One person company (OPC) is a new concept in India which has been introduced by the Companies Act, 2013. In the old Companies act 1956 a minimum of two directors and shareholders were required to form a private limited company. One of the biggest advantages of a OPC is that there can be only one member, Similar to a Company, a OPC is a separate legal entity.It’s a better option than a sole proprietorship and gives a person full control over the business while limiting his liabilities.
It must be converted into a Private Limited Company if it crosses the turnover of Rs.2 crores
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To be submitted by Director
- Scanned copy of PAN Card or Passport (Foreign National & NRI)
- Scanned copy of Voter's ID/Passport/Driver's License/Aadhar Card
- Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Scanned passport-sized photograph
- Specimen signature of Director
Note: Any one of the directors must self-attest the documents
For the Registered Office
- Scanned copy of Notarised Rental Agreement
- Scanned copy of No-objection Certificate from property owner
- Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
- Scanned copy of Electricity or Property Tax Receipt
Note: Registered office need not be a commercial space.
Separate Legal Entity
The Private Limited Company has a distinct existence and artificial person established under the Act and it is permitted to own property along with or without incurring debts.
Raising of Funds
As it becomes a corporate entity after its incorporation it allows small enterprises to easily avail loans and the credit facilities from the bank which where before available to only the private limited companies.An One Person Company can avail the various benefits provided to Small Scale Industries like lower rate of Interest on loans, easy funding from bank without depositing any security to a certain limit.
Control and ownership
The control over the company is of the single person so taking the decisions and managing the business making becomes very much easywithout following any elongated processes and methodologies as adopted in other companies.
Fewer Compliance than a Private Limited
The first and the foremost benefit to the OPC is that the compliance procedure becomes simpler as they have been provided many exemptions in comparison to Private Limited Company.
The most beneficial reason for incorporating a one person company is that it would be limited liability company and the owners would be liable only till the amount up to which they are limited there liability. As it is protected by only limited liability, so the personal assets of the persons are safeguarded.