Entrepreneurs seeking limited liability and a distinct legal identity favor One-Person Company (OPC) registration. This unique business structure allows a single individual to operate as a company, blending the flexibility of a sole proprietorship with the legal protection of a private limited company. In an OPC, the individual serves as both the director and shareholder, ensuring complete control and limited liability.
At IndiaFilings, we specialize in streamlining the OPC registration process, guiding entrepreneurs through the complexities of legal formalities. Our experienced team offers expert assistance at every step, from document preparation to filing, empowering you to make informed decisions about your OPC setup.
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Key Features of One Person Company (OPC)
Introduction: One Person Company (OPC) registration in India was introduced under the Companies Act of 2013. It enables a single individual to establish a company, combining the benefits of a sole proprietorship and a traditional company structure.
- Natural Person and Indian Citizen: Only a natural person who is an Indian citizen can establish an OPC.
- Resident in India: The promoter must be a resident of India, residing in the country for at least 182 days during the previous calendar year.
- Minimum Authorized Capital: The OPC must have a minimum authorized capital of Rs 1,00,000.
- Nominee Appointment: A nominee must be appointed during the OPC’s incorporation to ensure continuity in case of the promoter’s absence.
- Restrictions on Certain Businesses: Certain financial activities such as banking, insurance, or investments cannot be conducted by OPCs.
Advantages of OPC:
- Legal Status: OPC has a separate legal entity status, protecting the individual founder from personal liability for company losses.
- Easy Fundraising: OPCs find it easier to raise funds through investors and banks compared to proprietorship firms.
- Reduced Compliance: OPCs enjoy exemptions from certain compliance requirements, simplifying administrative obligations.
- Simple Incorporation: OPCs can be established with just one member and one nominee, streamlining the incorporation process.
- Efficient Management: With a single person managing the OPC, decision-making is swift, ensuring efficient company management.
- Perpetual Succession: OPCs maintain perpetual succession, ensuring the company’s continuity even with only one member.
Disadvantages of OPC:
- Suitable for Small Businesses: OPCs are primarily suited for small-scale businesses due to the limitation of having only one member.
- Restriction on Activities: OPCs cannot engage in certain activities, such as non-banking financial investments and charitable objectives.
- Ownership and Management: A clear distinction between ownership and management might be lacking, as the sole member can also be the director.
Registration Process: The registration of an OPC in India is facilitated through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. The process involves obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), name reservation, drafting MOA and AOA, filing forms, and obtaining the Certificate of Incorporation from the Registrar of Companies (ROC).
Why MPVD & Associates for OPC Registration?
MPVD & Associates is your ideal partner for OPC registration in Kolkata. With our expertise in company registration and deep understanding of the regulatory landscape, we simplify the complex OPC registration process. From name reservation to document preparation and submission, we ensure your OPC registration in Kolkata adheres to all legal requirements. Our dedicated support team is available to address any queries or concerns regarding OPC registrations for NRIs, empowering you to start your entrepreneurial journey with confidence.