The model of OPC was started by The Companies Act, 2013. It best suits entrepreneurs certain to operate their business themselves but wants the status of a private limited company. A one person company is a distinct legal body providing limited liability protection to its only shareholder while possessing continuous succession.
In case the turnover exceeds Rs.2 crores and if it has paid more than Rs.50 lakhs capital, within 6 months the OPC has to be converted into a private/public limited company.
An OPC can be registered in India by only one person. To incorporate a one person company you also need a nominee director, nominated in Memorandum of Association & Articles of Association. This person owns the OPC in case of the demise of the promoter. At the closing of every financial year, the OPC like other companies must file audited financial statements with the Ministry of Corporate Affairs. Incorporation of an OPC requires limited documentation and there is no mandate to conduct annual general meeting (AGM).
A one person company on inception is recognized as an artificial judicial person. An OPC company is a distinct judicial entity. It can purchase its assets or borrow own funds as a distinct judicial body. The shareholders are accountable for the company’s debts only as far as the shares they own.
While incorporating a one person company, a nominee has to be designated by the promoter member. The nominee turns into a member and operates the business in the event of the demise of the member. Thus, a one person company receives the advantage of perpetual succession due to the presence of a nominee.
In a one person company you can easily transfer shares by submitting the signed share transfer forms along with the share certificates.
Being an artificial judicial person, a one person company has the power to buy property under its name and be the owner of the property.
A one person company enjoys the benefit of limited liability. This ensures that a member of an OPC company is liable only for the unpaid amount of shares he/she holds. In case the company defaults, the personal property of the member cannot be liquidated.
Since an OPC company is an artificial judicial entity, it has the power to initiate legal proceedings against another person, just like an individual. Further, it can start a legal proceeding against a company too.
An OPC company enjoys greater credibility amidst lending institutions and vendors as it has to get its books audited yearly.
you can select your desired plan and fill an inquiry form for the same.
In line with your business activity, you are to apply two different names with the MCA, in case of an OPC registration. Of those, one of the names will be approved. The free name search facility provided by the MCA portal is a good option for you to use. You can get a list of closely resembling names of present companies.
In a one person company registration, acquiring DSC (Digital Signature Certificate) to digitally sign e-forms is a pre-requisite.
The form for the Incorporation of a company is filed online.
As evidence of your company formation, you will get a certificate of incorporation.
Congratulations!!! You are ready to start your business as a one person company and take it to great heights of excellence!
It is mandatory to maintain compliance under various regulations by all the LLPs registered in India.
Failure to adhere to the same may result in huge penalties and even disqualification of the designated partners.
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