THINGS TO KNOW BEFORE YOU REGISTERING AN ONE PERSON COMPANY
- The concept of One Person Company (OPC) in India was introduced through the Companies Act-2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity.
- One of the biggest advantages of a OPC is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.
- Though a One Person Entity allows a lone entrepreneur to run a business with Limited Liability protection, An OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation. India Filings can help incorporate a One Person Company (OPC) in India
BENEFITS OF REGISTERING A ONE PERSON COMPANY (OPC)
- One man Army: One Person Entity allows a lone entrepreneur to run a business with Limited Liability protection, provide a more stable and secure alternative to Sole proprietorship.
- No Minimum paid-up capital: No requirement for min paid up capital, an individual can start his business with whatever amount he can invest.
- Separate legal identity: A One Person Company is a legal entity and a juristic person established under the Act. OPC has separate existence and has wide legal existence to incur debts and own property in its own name.
- Limited Liability: Being a separate entity, an OPC has liability limited and safeguard its owner from burden of unlimited liability.
- Flexibility: OPC bring flexibility to owner in managing company, OPC have been granted number of exemptions and have lesser compliance.
- Easy availability of funds: Banking and financial institutions prefer to lend money to the company rather than proprietary firms. A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc.
- Copy of PAN Card of Owner
- Passport size photograph of owner
- Copy of Aadhaar Card/ Voter identity card
- No Objection certificate (NOC) from Landlord
- Bank statement/Utility bill of Business Place
- Copy of Sale Deed (if owned property)
- Copy of Rent agreement (if rented property)
BASICAll Inclusive Fees
PROAll Inclusive Fees
PREMIUMAll Inclusive Fees
FAQ on OPC Registration
At least one nominee is required to start an OPC who can act as shareholder as well as director
Any individual/organization can become the member of One person company including foreigners/NRI’s
The minimum paid up capital is Rs. 1 Lac
Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.
No, only private / unlisted public company can be converted into LLP.
No, name of the LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’. Word ‘limited’ shall be allowed in name only within ‘Limited Liability Partnership’.
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.
Foreign LLP can establish a place of business in India by filing Form 27 giving the particulars of incorporation of foreign LLP, details of DPs/ partners of that foreign LLP and details of atleast two authorised representatives for complying with regulation of LLP act.