A One Person Company is the newest form of business in India introduced by the Companies Act, 2013 for the first time wherein only one person can open a company, However, a nominee needs to be nominated. A One Person Company can be established only for small businesses as the maximum turnover it can operate with is Rs. 2 Crores Only. An OPC can raise capital only up to Rs. 50 Crores. Only an Indian Citizen can open a One Person Company. OPC company is a creation of law and can be registered/incorporated as per the law as in the companies’ act 2013 and the rules made thereunder. This is a new concept introduced for the first time in India by The companies’ act 2013; one person can act as a shareholder as well as director of the company hence more like a one person controlled organization. The world OPC has to be written in the name of the company. OPC have a characteristic of proprietorship firm where one person owns, controls and manage the organization. An OPC has to convert into a private limited company once turnover reaches 2 crores or Capital is more than 50 Lac .
Two front-facing colour photographs of directors / shareholders
Pan Card of each director, The name must match with IT database
Identity Proof of each director, (Aadhar Card, Passport, Driving License or Voter ID Card)
Address Proof (Bank Statement or Passbook, electricity bill, telephone bill, or any utility bill)
Proof of the registered address of Company (Sale Deed, electricity bill, tax paid receipt or any other utility bill)
No objection Certificate from the owner of premises where registered office of the company shall be situated
Documents Must be self attested and attested by a Gazetted Officer, Post Master or a Bank Manager
DSC is the equivalent of physical or paper certificates in digital format. As the application For OPC Registration is filed online with Digital Signatures of the director, hence the process starts with the issuance of the digital signature for all the directors/promoters. Photo, ID and Address proof is to be submitted along with Form for issuance of DSC
Advantages of One Person Company (OPC)
Limited Liability implies that the owners or shareholders of the company are not personally liable to pay debts of the business. They are only responsible for the unpaid shares of the capital of the company. In order to reap the Limited Liability Benefit, owner needs to comply with all laws.
Perpetual Existence implies that the company is unaffected by the death of owner or the transfer of its shares to a new establishment. The best part of perpetual existence is that a company will continue to exist, no matter how many directors, officers and shareholders join or leave.
Capacity to Sue and to be Sued
Private Limited Companies enjoy the advantage to carry out legal proceedings and to bring a suit in the court of law. Like an individual, the companies can bring a legal action in another person's name and also can be sued in the court of the law as they are distinct & independent legal entities different from its owners, promoters & directors
Distinct Legal Entity
A legal entity like a company has a separate identity from its owners or shareholders. With the registration of the company according to the law in force it becomes a distinct legal entity which is different from its promoters and is treated separate under law
Not only the private limited companies receive great financial assistance from banks and financial institutions but also enjoys an advantage of borrowing funds. A private limited company can also issue debentures apart from accepting deposits from the public.
Like a person a private limited company can purchase, sale, own, possess, enjoy and transfer property rights to anyone in its own name. Moreover, no claim can be made upon the property of the company by the shareholder as long as it exists.
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