One Person Company Registration
One Person Company is a corporatisation of sole proprietorship firms, and incorporated with only one person as a member, where legal and financial liability is limited to the company. In an OPC, a single promoter gains full authority over the company.
Overview of One Person Company Registration
Advantages of One Person Company Registration
Separate Legal Entity
OPC has a separate legal entity that distinguishes between the promoter and the company and is capable of doing everything that an entrepreneur would do.
Limited Liability
The promoter’s liability is limited in an OPC, in the event of a default or legal issues, to the extent of the value of shares owned.
Easy Availability of Funds
OPC is a form of Private Company which can raise funds through venture capital, financial institutions, angel investors, etc. which Proprietorship will not be able to.
Less Compliance
The Companies Act, 2013, provides certain privileges to the OPC pertaining to compliances, such as, an OPC need not prepare the cash flow statement. Further, the company secretary need not sign the books of accounts and annual returns and be signed only by the director. Minutes can be passed by the member easily by entering them into the minute book and signed by the sole member
Minimum Incorporation Requirements
One Shareholder Minimum One Director The director and shareholder can be the same person Minimum One Nominee
