The new Company Act, 2013 has introduce a new concept called One Person Company to support individual entrepreneurs who own are capable of starting a venture by allowing them to create a one person economic entity.
As the name suggest only one single person is required to start OPC ,while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.
Though a single Person Entity allows a lone Entrepreneur to run a business with Limited Liability protection, an OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, an OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of an OPC prior to incorporation. TaxAdvizer can help you to incorporate a One Person Company (OPC) in India.
|OPC Incorporation||Getting DSC & DIN||Name Approval||OPC Incorporation|
|TaxAdvizer will help you to start-up a One Person Company in 15- 20 working days. (Subject to Registrar of company processing time.)||Digital Signature Certificate (DSC) and Director Identification Number (DIN) is required for the proposed Director of the OPC. DIN and DSC can be obtained for the proposed Director within 4 to 5 days.||A minimum of one and a maximum of six propose names must be submitted to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 4 to 5 working days.||Relevant documents can is required to be submitted to the MCA after name approval. It take Usually 5 to 6 day to get approval and incorporation certificate from MCA. (subject to their processing time)|