One Person Company
An OPC is eligible for the various benefits provided to Small Scale Industries, such as lower interest rates on loans, easy funding from the bank without a security deposit up to a certain limit, and numerous benefits under the Foreign Trade policy. All of these advantages can be a boon to a business in its early years.
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With the passing of the Company’s Act in 2013, a novel business structure known as the “One Person Company” was made legal in India. In India, a business can only be incorporated as a One-Person Company if there is only one founder. Before the Companies Act of 2013 was put into effect, an individual could not start a business on their own and call it a company. An OPC possesses characteristics of a company as well as the advantages of a sole proprietorship. In the past, if a person needed to launch a business, the only legal structure that could be used as a sole proprietorship.
A single director and a single member are all that are required to establish a company in accordance with the requirements of Section 2 (62) of the Company’s Act 2013. The requirements for a One-Person Company registration in India are less stringent than those for a Private Limited Company registration.
Under the provisions of the Companies Act of 2013, it is possible to obtain a One Person Company Registration in India with only a single member and a single Director. It’s possible that the same person could serve as both the Director and a member. An OPC can be registered in India by a single person, regardless of whether or not they are residents of the country.
Having just one owner is preferable to having multiple owners for a number of reasons. It is very helpful in terms of making a decision in a short amount of time and managing business affairs without any interference from other people or any suggestions. The feeling of being a part of something bigger drives us to advance the company.
Even OPC with a low credit score are eligible to submit an application for the loan. If Other Person’s Company has a score that is in line with the standards, the credit score of One Person Company is irrelevant.
OPC is eligible for all of the advantages provided by the Enterprises Development Act of 2006 because it was recently incorporated and falls into one of the categories of micro, small, or medium businesses that are covered by the aforementioned act. According to this, if the buyer or the seller receives any kind of late payment, then they are entitled to receive an interest rate that is three times the rate that the bank charges.
Any commercial enterprise that operates under the guise of a company invariably benefits from increased trust and status.
If the business is structured as a limited liability company, a One-Person Company has the ability to solicit funding from venture capitalists, angel investors, financial institutions, and so on. Any open public company has the potential to become a private company by successfully raising capital.
One of the advantages of having a One-Person Company is that it gives the individual more opportunities, provides limited liability due to the fact that the liability of the One-Person Company is limited to the extent of the value of the share, and enables the individual to take more risks in business without being concerned about the possibility of losing any personal assets. It is a form of encouragement that is given to new businesses that are started by people who are young, innovative, and new.
OPC is managed and controlled entirely by a single entity known only as the Single Owner. It allows for prompt decisions to be made and actions to be taken. The feeling of being a part of something bigger inspires further expansion of the company. The sole proprietorship is currently the most common form of organisation for a business anywhere in the world. When dealing with large organisations, private limited companies, as opposed to sole proprietorships, are the preferred choice. Private Limited business structures have the advantage of enjoying the status accorded to them by corporations, which makes it easier for entrepreneurs to find qualified employees and to keep those employees by providing them with corporate designations such as directorships.
No, you are not permitted to form more than one OPC, and your company’s nominee cannot serve as the nominee of another OPC.
The minimum capital requirement is 1 lakh rupees, but this amount varies based on your investment. In OPC Company, authorized capital and investment are distinct. You can invest as much as you like, but in order to incorporate a business professionally, you must have Rs. 1 Lakh in the capital.
It is mandatory to convert an OPC to a private or public limited company if turnover exceeds Rs. 2 crores or paid-up capital exceeds Rs. 50 Lakhs, so many individuals who are considering an OPC registration opt for the private limited company structure.
Any individual or organisation, including foreigners and NRIs, can join a One-person company.
For incorporation, you are not required to be present at our office or any other office, as the entire process is conducted online. A scanned copy of the documents must be mailed.
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