OPC Registration Advantages of a One Person Company
One Person Company Registration (OPC) The concept of One Person Company in India was introduced through the Companies Act, 2013. To support entrepreneurs who on their own are capable of starting a venture. By allowing them to create a single person economic entity.
Easy to Manage
OPC Registration there is no requirement to hold annual or Extra-Ordinary Meeting. Only the resolution shall be communicated to the members. Only one Board Meeting is necessary in each half of the calendar year. The provisions of Section 174 of the Companies Act, 2013 relating to a quorum of meetings for Board is not applicable to OPC.
By doing business as a proprietorship firm. The personal assets of the proprietor can be at risk in the event of failure. But this is not the case for a One-Person Private Limited Company. Cause the shareholder liability is finite to his shareholding. This means any loss or debts which are pure of business nature will not impact. Personal savings or wealth of an entrepreneur.
Banking and financial institutions prefer to lend money to the company rather than proprietary firms. In most of the situations, Banks insist the entrepreneurs convert their firm into a Private Limited company before sanctioning funds.
In an OPC, a director you can receive remuneration, as a lessor. You can receive rent, as a creditor, you can lend money to your own company and earn interest. Directors’ remuneration, rent, and interest are deductible expenses. That reduce the profitability of the Company and ultimately bring down the taxable income of your business.
Company Registration Documents Required
- Self-Attested Copy of Pan Card of Directors
- Self-Attested Copy of Voter ID card /Aadhaar card
- Passport size photograph of directors
- Email ID & Mobile No
- Electricity / Water bill (Proposed registered office)
- Copy of rent agreement (If rented Property)
- Landlord NOC (Format will be provide)
- Copy of Property Papers (If owned Property)
An approximate of 15 days (subject to ROC processing time) is requiring for incorporation of OPC
- Application for Director Identification Number (DIN) issued by MCA for an existing Director or a person intending to be a director. This can be obtain in 5 to 7 working days.
Check availability for name of OPC and also trademark, if any. At least 6 names must be provide by the applicant in the order of their priority. Also check for any trademark registered in the proposed names of the company. After drafting Main Object file INC 1 is to be filling with ROC for name availability. This will be approve within 2-3 working days.
After obtaining DSC and DIN we will file name approval application with at least 3 names with MCA. Name approval generally comes in 3-4 working days.
Incorporation documents can be submitted to the MCA along with an application for incorporation. This will be approve within 5 to 7 working days (subject to ROC processing time).