One Person Company (OPC) is a newly added concept that came into force with the introduction of the Companies Act 2013. It is the only legal structure that allows a sole individual to start his company with the many concessions and exemptions provided under the law.
OPC is a single-member company which cannot raise investment through the issue of shares as the 100% stake of OPC will remain with the single-member. However, unlike other private limited companies, it is allowed to raise funds through the issue of debentures and loans.
One Person Company Benefits
Here are 5 reasons why any entrepreneur or business entity should opt for a one-man company. The benefits of an individual company are as follows:
A separate legal entity
Separate legal entity refers to a type with detached accountability
The OPC is a separate legal entity and an entrepreneur is capable of doing whatever it takes.
More opportunities, limited liability
Limited to the limit of the value of the share you hold!
One of the advantages of a One Person company is that it has more opportunities, since the liability of OPC is limited to the limit of the value of the share you hold, the person can take more risks in the business without affecting or suffering. Loss of personal property. This is the incentive for new, young, and innovative start-ups.
Requirement for OPC registration
- Minimum 1 shareholder
- Minimum 1 Directive
- Directors and shareholders can be the same person
- Minimum 1 nominee
- The ‘OPC’ suffix will be given with the name of the OPC to distinguish it from other companies
- OPC faces little compliance burden compared to Pvt. Ltd. Co., so OPC can focus more on other functional and main areas.
It is the easiest business form under which one can operate a business
You are only helpful in making quick decisions, controlling and managing the business without following any lengthy processes and procedures, as adopted in other companies. A sense of belonging drives the business to develop more.
Increase in trust and reputation
The company always gains an increased trust and reputation.
Any business entity that operates as a company always gains an increased trust and reputation.
Incorporation of One Person Company
Following are the simple steps to register online OPC:
- Get the DIN and DSC of the director before applying to the company. Up to 3 DINs can be implemented directly via SPICe
- Apply for name reservation through MCA’s web-service; Before applying for the name make sure that the name is available and not registered with the trademark otherwise, the ROC can reject the same.
- On receipt of the name acceptance letter, the applicant will apply for company registration through online SPICe forms which can be downloaded from the official website of MCA.
- Fill the form, attach all the necessary documents with the form and attach the same to the DSC for practicing to the Director, and practicing professional certifying the same.
- If the information given in the document and form is correct, and the ROC is satisfied with the application then a certificate valid through the life of the OPC will be included. Create.
Now get OPC registration with the help of our Chartered Munshi experts at the lowest prices