The start-ups who just have one founder, for them One Person Company is a good business formation. The idea of One Person Company (OPC) in India was originally introduced to give a boost and an increasing feeling to entrepreneurs who hold great potential in starting their own venture and allowing them to create a single person company.
Advantages of one Person Company
One of the major advantages of one person company registration is that it requires only a member in one person Company while in other registration cases, a minimum of two persons are required for registering a private Limited company or a Limited Partnership. As one person company itself is separate official and legal entity, it sees to it that it provides protection to the owner so that he/she can enjoy the features of limited liabilities.
Things Required for the One Person Company Registration, India
- One Shareholder is needed
- One Person is needed
- One Nominee is required
- One Director is required
So, eventually it requires just one person for the registration.
Features of One Person Company
- Limited Liability: The personal assets of the Director are safe and are only limited to the assets of the company.
- Separate Legal Entity: A private limited company is a separate legal entity and is also a juristic person which has been established under the Companies Act, 2013.
- Uninterrupted Existence: A company has continuous existence and stays unaffected and unchanged by change in ownership or death of any of its members.
- Borrowing capacity: Financial institutions as well as banks prefer lending to a company than lending to proprietary firms.
Procedure of One Person Company Registration
- First and foremost, one has to apply for the Digital Signature of the Directors which is required in filing the e-forms for the one person company registration.
- Then apply for the Director Identification Number or DIN which is required for applying as a director in any company.
- Apply for the Name approval on the MCA Portal as per the MCA Guidelines.
- Filings E-Forms with ROC
- Payment of ROC Fees after the name Approval from Officers.
- Issue Certification of Incorporation i.e. the final certificate of One Person Company.
- Apply for the PAN Number
- Open a current bank account on the name of one Person Company.
Documents Required for One Person Company
- PAN Number of the Director
- Address Proof of the Director as on Adhar card/driving license/ passport.
- Business Place ownership proof as on the electricity bills or rent agreement or the NOC from the landlord.
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