One Person Company (OPC) refers to a company incorporated by a single person. The one-person company gets all the benefits as credits, bank loans, limited liability, and legal protection. One person company means a sole proprietor.
One Person Company Introduced in the Company’s Act 2013 by Dr Jamshed Irani. With the help of this act, an individual can establish his business. They are the sole proprietors.
By Companies Act 2013, a single person has the rights to form a company with a single member and one director, and there is no issue where the director and member may be the same person. Any amount of Capital can incorporate one person company (OPC).
As a separate legal entity the OPC protects the single individual who has incorporated it. The legality given to this business form makes it popular among banks and financial institutions. Also, it enjoys the same freedom and privileges as a private limited company.
Only one person is required to incorporate an OPC, which is the most fantastic element of an OPC. Hence only one person who manages its affairs holds the benefits for decision-making, control. The member quickly passes the standard and special resolutions by entering them into the minute book and signed by the sole member. Hence, managing the company is easy as there won’t be any conflict within the company.
To incorporate in OPC, only one person and one nominee are also required. The same person can also be the director .Minimum money required for incorporating OPC is 1 lakh, but there is no minimum paid-up capital requirement. Hence OPC is straightforward to incorporate as compared to other forms of company.
OPC can contain various benefits enjoyed by small-scale industries, like loans are available at a lower interest rate as OPC is a private company, so it is easy to get funds from venture capital, investors, and incubators.
OPC has the feature of perpetual succession, as while incorporating with OPC, the individual needs to appoint a nominee.
Let us see the various types of that can be formed under OPC
IN OPC, there is a specific restriction when it is to incorporation, unlike a Private Limited Company. For registrations, some essential documents are needed are:
One Person Company (Opc) Registration Process
Digital Signature Certificate is a must to obtain various documents are required:
The Digital Signature Certificate (DSC) is formed, of the proposed Director in SPICe Form, in step 1 is to use for the Director Identification Number (DIN). AS THIS IS MADE FOR THE name and the address proof of the director
The next step for incorporating an OPC is to decide the name of the company, the name of the company should be in this style “ABC (OPC) Private Limited”. The name should be approved in the Form SPICe+ 32 application. And if the name gets rejects, then you have to submit Form SPICe+ 32 application.
The following documents are required.
All the documents should be attached with the SPICe Form, SPICe-MOA, along with the DSC and uploaded MCA site for approval. Also, pan number and TAN are required.
After verification, the Registrar of Companies will issue a Certificate of Incorporation. OPC has taken the entrepreneurship of India to a subsequent level which has evolved thanks to globalisation and enhanced the market
