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In 2013, the Companies Act, 2013 introduced the concept of a 'One Person
Company (OPC)'. This created an entirely new set of opportunities for budding entrepreneurs who
can start a business single-handedly by creating their own single-person economic entity. A
one-person company (OPC) is a refinement of a sole proprietorship.
In an OPC, a single promoter gains complete control of the company, limiting his or her liability for contributions to the enterprise. However, a director nominee is present but has no authority until the real director is unable to continue. According to Section 2 (62) of the Company's Act 2013, a company can be formed with only one director and one member. A One Person Company Registration in India is a type of entity with fewer compliance requirements than any other type of company. An OPC is simple to manage because it is run by a single person. If you are an entrepreneur looking for a one-of-a-kind success, you can register as an OPC in India.
Types of OPC
Using the RUN application to reserve the OPC Company's name through Spice PART A form accessible via the MCA portal.
Choosing a memorable name for the OPC Company. Look up the name of the OPC Company.
It will take MCA 3-4 days to approve or reject the name approval request.
If the name is approved, the MCA will send us a name permission letter, and we must register the firm within 20 days.
To extend the grace period before the 20-day grace period expires, an additional fee must be paid.
Obtaining the DSC and DIN of the company's directors will incur additional costs.
Using SPICE PART B, draught the company's MOA and AOA electronically.
Submitting an online application for the formation of an OPC Company.
The application will be evaluated by the Ministry of Corporate Affairs.
If a company is formed, the MCA will issue a Certificate of Incorporation, PAN, and TAN.
OPC is the only corporate entity in India that can be operated by a single promoter with limited liability protection, ensuring the business's perpetual existence as well as easy ownership transferability.
In the event of the original director's incapacity or death, the only owner of the OPC shall nominate another person who is an Indian resident.
The incorporated OPC has "perpetual succession," or continuous existence until legally dissolved. Because the company has its own legal existence, it is unaffected by the death or departure of any of its members and continues to exist regardless of changes in ownership.
In OPC, ownership can be transferred by changing the nominee director's information, shareholding, or directorship, or by signing, filing, and transferring share certificates and share transfer forms, which are sufficient to transfer the company's ownership.
Due to the requirement that an OPC have its books audited annually, it has greater credibility among vendors and lending institutions.
Venture capital, financial institutions, angel investors, and other sources of funding are readily available. It is clear that banks and other financial institutions prefer to provide funding to corporations rather than partnership firms or proprietary concerns that require very little ROC filing to be registered with the Registrar of Companies.
A company with artificial person status is allowed to acquire, own, enjoy, and alienate property in its name, such as buildings, intangible assets, factories, residential property, and so on, and can claim any ownership of the company while serving as the nominee director.
A One Person Company Registration has fewer compliances, which are Reasonable and Minimum Compliance.
Only the company's investment is lost in OPC; the directors' personal assets are protected regardless of the business's debts. Because the business entity is a corporation, the entrepreneurs' assets are protected from the corporation's failures.
Because of the lack of documentation, OPC Company is simple to sell.
Because this enables quick decision making and execution, the OPC can appoint up to 15 directors to official functions without providing them with any share.
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