One Person Company Registration
One person company is a new type of business wherein one person can control the company and act as its director, shareholder, MD, etc. The concept of OPC was coined to eliminate the limitation of a sole proprietorship. If you want to start your business independently, then OPC is the best choice for you. When this business model was not introduced in India, people had no option but to choose Proprietorship as their form of business. It has several flaws, such as-
- One cannot take investments
- No legal existence
- Unlimited liabilities,
- proprietorship is considered as untrustworthy in India.
One Person Company has some features and restrictions:-
- Separation of ownership and operations up to a great extent,
- Less compliance is required compared with a private limited company,
- Small entrepreneurs can make an entry in the market,
- Financial institutions and banks prefer lending money to the company in place of proprietary firms,
- Faster decision making on account of single ownership and
- The owner of change the business venture in a private limited company any time without any problem.
Frequently Asked Questions
IS ONE PERSON COMPANY IS A PRIVATE LIMITED COMPANY?
Yes, One Person Company will be formed as similar as a “Private Limited Company”. It can be formed as company limited by share capital or limited by guarantee or unlimited company. The words “One Person Company” will have to be mentioned in brackets below the name of such company, wherever its name is printed, engraved or affixed.
IS ONE PERSON COMPANY REQUIRED TO FOLLOW LESS COMPLIANCES THAN A PRIVATE LIMITED COMPANY?
OPC is one of the easiest forms of corporate entities to manage. Very few ROC filing is to be filed with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM), so lesser compliance cost than a private limited company.
WHO CAN INCORPORATE A ONE PERSON COMPANY?
Only a person, who is an Indian citizen and resident in India, shall be eligible to incorporate a One Person Company. For becoming a director in a company, no professional or educational qualification is required. Any individual can become a shareholder in a one person company.
HOW MANY ONE PERSON COMPANY A PERSON CAN INCORPORATE?
A person can incorporate upto five One Person Companies.
DO PROMOTERS HAVE TO BE PRESENT PERSONALLY TO INCORPORATE A COMPANY?
Yes, promoters need to be present to personally meet us at our office or meet at any place for the registration of a Company. All the incorporation documents required to be present in original and scanned copy also required to submit.
HOW MUCH TIME WILL IT TAKES TO INCORPORATE A ONE PERSON COMPANY?
To incorporate a company we required approximately 5 to 8 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.