Introduction :
One person company (OPC) in India is one of the easiest forms of corporate entities to manage.
One person company is a hybrid of Sole-Proprietorship and Corporate form of business.
One Person company Registration opens up new business opportunities for sole proprietors and entrepreneurs who also wish to enjoy the advantages of limited liability, and a separate legal entity as well.
introduction
The One Person Company (OPC) was introduced by the Companies Act 2013 to assist entrepreneurs who are capable of starting a business on their own by allowing them to form a single person organisation.
A registered one-person company (OPC) is a limited-liability entity with only one owner. This individual is a shareholder as well as a director. The liability of the owner is limited to the amount of capital he has invested. In an OPC, a single promoter gains full authority over the company thereby, restricting his/her liability towards their contributions to the enterprise.
Features :
- A natural person cannot become member of 2 OPC at a time
- Minor cannot become member or nominee of OPC and even cannot hold share with beneficial interest in OPC
- Only a natural person who is an Indian citizen whether resident in India or otherwise shall be eligible to form OPC.
- Company shall put the word (OPC) with name of the company like ABC (OPC) Private Limited
- OPC, like a private or public limited company, also have a distinct identity from its shareholder or directors
- Voluntary conversion to private limited is now possible at any time.
Benefits of One Person Company :
- Easy to Obtain Funds: As OPC is a private company, it is simple to raise funds from venture capitalists, angel investors, incubators, and other sources.
- Legal Status: The OPC is granted its own legal entity status by the member.The OPC is a separate legal body that protects the single person who has incorporated it.
- Less Compliance: The Companies Act of 2013 exempts the OPC from certain compliance requirements. The cash flow statement does not have to be prepared by the OPC.
- Easy Management: Since a single person can establish and run the OPC, it becomes easy to manage its affairs.
- Perpetual Existence: The OPC has the feature of perpetual succession even when there is only one member.
