Relatively a new concept, the One Person Company(OPC) form of business brings the charms of corporate framework into sole proprietor-run organizations.Introduced recently in the < OPC provides total control to the single promoter over the entire company and limits promoter’s liability to business contributions. Promoter becomes the only shareholder while there may be more directors; there is no possibility of raising funds through equity. Performing as a hybrid between sole proprietorship and corporate forms of business, OPC enjoys relaxations and concessions under the Act.
Upon crossing an Annual turnover of more than Rs.2 crores, OPC needs to be converted into a private or public limited company, within a 6-month time limit.Allowing single person financial entity status, OPC requires a mandatory nominee director who in the event of disablement of the original director—will become the owner of the OPC.Entrepreneurs may be able to conduct their business activities with complete control while enjoying the features of companies in this type of business.
While being free to own properties and incur debts, directors have no liability to the company’s creditors – limited liability secures their personal property from debts
Contrary to sole proprietorship where death of the proprietor brings business to an end, OPC, being a separate legal entity, continues to exist regardless of changes or expiration in membership.
Similar to increased borrowing opportunities enjoyed by companies, OPC, having its books audited annually, draws better credibility and financial assistance among different lending institutions and vendors.
Requiring simple steps, Company’s shares are easy to transfer from one shareholder to another.
OPC being a legal person, it is free to own, enjoy, and disown properties – directors cannot claim ownership while the company is ongoing.
We at APNALEGAL can get your One Person Company incorporated in 7 to 12 working days depending upon the ROC processing time.
The proposed OPS Director needs DCS & DIN, which we can arrange to obtain within a week.
For name approval process, up to six proposed names may be submitted to the MCA, who normally approves registration within 2 days after application is filed
Documents related to incorporation may be submitted along with the incorporation application, which the MCA normally approves within a week, depending on processing time.
One person company registration with DSC, DIN, name approval, incorporation fee, PAN, TAN, share certificates and company kit.
OPC registration with DSC, DIN, name approval, incorporation fee, PAN, TAN, share certificates, company kit and one year TDS filing.
OPC registration with DSC, DIN, name approval, incorporation fee, PAN, TAN, share certificates, company kit, one year TDS filing and trademark registration.