One Person Company means a company which has only one member' It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member.
One Person Company (OPC) registration is forward thinking concept where promotes the incorporation of micro-businesses and persons with entrepreneurial dreams but has no time, resources or means to get more partners to execute the business plan. It can be considered as the combo of Sole proprietorship business model and the normal company legal entity business model, where the OPC company would enjoy the best of two worlds. You can register one person company under the provisions of the companies Act 2013 and the rules thereto, where it was made possible for a single person company to act as a company without the complexity of having partners. Such encouraging more people to come forward to start business. In One Person Company the person has Limited Liability for the shares he hold in the company he/she incorporated while operating an incorporation given in this case there is only sole shareholder.
The primary reason for choosing One person Company (OPC) registration is that the given person has a business idea that needs to be represented in a corporate format and the idea solely can carried out by the same person with limited resources they have. OPC company can have more than one directors, but the shareholder cannot be more than one, and also no person shall be allowed to incorporate more than 1 one person company.
By incorporation of OPC, the company can enjoy the benefits in banking point of via just alike Private limited companies, One Person Companies are eligible for Banking loans, credits and enjoy the benefits of Limited liability company.
Limited Liability plays an major role in the decision as the partners are limited to the actions they make for the shares.
The company would exist in succession fashion as the governmental body treats it as a separate entity in terms of law.
For a One Person Company it can represent itself in seeding rounds to get investment from the Angel Investors and Venture Capital firms just like how Private limited Company.
As there are less legal Complexity involved in the One Person Company when compared to other registration methods, the person can concentrate more on the niche they belong to improve.
As you there is only one person to take actions and make the calls to what to implement and what not to, the turnaround time is much faster and the execution can be done soon too.
OPCs have been provided with a number of exemptions and therefore have lesser compliance related burden.
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.
On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.
Nominee is a person appointed by the member of the one person company (OPC) who shall, in the event of subscriber's death or his in capacity to contract becomes member/shareholder of the OPC.
INC- 3 has to be signed and prodby the said nominee.
Company is incorporated along with the incorporation certificate, PAN,TAN and GST Certificate within 3-4 working days.
We can connect you with few relationship managers to pursue with opening of your newly incorporated company's current account.