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Complementary Incorporation Kit;
Complementary Incorporation Kit;
Complementary Incorporation Kit;
Complementary Incorporation Kit;
What is One Person Company (OPC)?
The One Person Company (OPC) as a strong improvement over the sole proprietorship. Its provide limited liability with full control over the management. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). Further that if an OPC hits turnover of over and above Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it must be convert into a private limited company or public limited company within six months.
Minimum requirement to incorporate OPC;
For Registered Office of the Company:
1. Electricity Bill / Telephone Bill / Mobile Bill (Not Older than 2 Months)
A utility bill, rent agreement or sale deed and an NOC from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.
Sole Proprietorships come to an end with the death of the proprietor. As an OPC has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
OPC is one of the easiest forms of manage corporate structure with minimum compliances required and less number of form filling to the Registrar of Companies (ROC).
Ownership of a business can identify from the share held by the shareholder and it can be easily transferred to any person or an entity by transferring shares. In a one person company, the ownership can be transferred by altering the shareholding, directorship and nominee director information.
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions
In OPC Liability is limited and provide full control over management. In a one person private limited company, only investment in business is lost, personal assets of the directors are safe.
A company has separate identity and being an artificial person, can acquire, own, enjoy and alienate property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., Further; the nominee director cannot claim any ownership of the company while serving as a nominee director.
One Person Company is the only type of corporate entity that can be started and operated by a single promoter with limited liability protection in India.