All about One Person Company Registration
One Person Company (OPC) means a company which has only on person as a sole member or single owner. An individual who is an resident and also Indian citizen in India can incorporate a One Person Company. The concepts were introduced to give advantage to sole proprietor to run business with limited liability as compared to sole proprietor whose liabilities are unlimited.
Features of One person company:
- Only one person ( individual) can form company.
- It is a kind of Private Company which have all the advantage of private company.
- Maximum capital is 50 lacs and maximum turnover is 2 crores.
- OPC can convert itself to private company after 2 years of establishment.
- Single shareholder or member should give name of one person who act a s a nominee of the company, that in the event of death of a sole member, they will become that one person.
- It doesn’t required to hold any annual general meeting
Apart form this there are some inherent limitations in one person company
- Ag person can have only have one one person company they can not open more than one one person company.
- There is requirement of nominee in case of person company, that in the event of death of proprietor that one person can control the company, however that nominee can not open there own one person company because he is already a nominee in one person company.
- A one person company must be mandatory convert itself in to normal private limited company whenever its paid up capital exceeds 50 lacs or its turnover exceeds 2 cr ( average profit of last 3 years)
- A person can voluntary convert its one person company only after 2 years of its incorporating.
Reasons for one person company (OPC)
Documents Required for OPC Registration
1. Pan Card & pictures
Individual PAN card and one passport size picture required who is willing to form a company and same documents for nominee is required.
2. Aadhaar Card
For OPC registration we need Adhaar card of proposed owner and nominee.
3. Bank Details
One document from the option is required (Bank statement/ updated bank passbook/ Utility bill ) not older than 2 months.
4. Business address proof
Any utility bill like electricity bill or water tax bill is required, not older than 2 months. in case property is rented in than rent agreement with owner is required.
Reasons for One person company (opc)
1. Easy to start
A one person company can easily be formed by a single owner there is only some basic KYC documents is required.
2. less complainces
There are some basic exemption has been provided to one person company likne not required to hold AGM or board meeting in comparsion to private limited.
3. Tax Advantages
In all other entities income tax rate is 30%, but in the case of private limited or OPC company income tax rate is 25%.
4. Separate Legal Entity
Company means separate entity from its director, company create with the process of law and end with the process of law. There is one saying "Members may come, members may go, But the company runs forever", which means company members and director may change any time.
5. Market credibility
In India people use to take serious if you are doing business with the name of Private limited or OPC private limited the simple reason behind this is the Indian government take close check of every company.
Get a call from expert so as they can understand business
Take a name approval from ministry of corporate affairs which you desired for your proposed firm
Send all the documents according to your business requirement as suggested by the expert.
Get digital signatures of owner of OPC
Once all the documents been send by you our team filled the application to the relevant department.
Getting a certificate
This is the last and final step of completion of your work to get your desired certificate
How Ovakil help in OPC registration ?
Ovakil helps you for registering Company business,it usually take 4-5 days for all process
1. Company Incorporation certificate
We will provide company incorporation certificate after all process, this certificate is important for every company and required as a proof of company registration
2.OWNER DSC and DIN
Directors needs digital signature and director identification number (DIN) for company registration, we will provide all DSC and DIN
3. PAN and TAN
Permanent account number (PAN) and Tax allocation number (TAN) will be provide by us in this registration.
4. MOA and AOA creation
Memorandum of association (MOA) and Article of association (AOA) will prepared after understanding your business needs.
Yes, you can convert it if you want and there are some cases where compulsory conversion is also required
like changing in rules or exceeding of maximum authorized capital.
One person company cannot run Non banking financial services under OPC.
There is no minimum capital required, this is individual choice at the time of registration of Company.
There is flat rate of income tax @ of 25% up to profit of 50 lakhs. After that 30% income tax rate is applicable on OPC.
Any Doubts? Get a Callback from Ovakil Legal Panel.
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