Step By Step Process : One Person Company – Incorporation of OPC

I understand that you have a question in your mind that start a business or not? If business idea is there than decision should be YES. Start a business and get business registered as OPC (one person company).

Let me help you with simplifying what One Person Company is?

Let’s understand together:  It’s a new concept in India where in company has only one member. One person company was introduced by company Act 2013. In Opc only one member is required to start it and member itself can be shareholder or director or you can say owner of the company.

People who are looking forward to start up or forming their organization should keep important things in mind as listed below:

Step 1.

One shareholder is required.

One director (shareholder can be diretor)

One Nominee is mandatory

Nominee consent

Step 2.

Apply for DIN ie Directors Identification Number.

Step 3.

Obtain digital signature certificate. The DSCs are typically issued with one year validity and two year validity. These are renewable on expiry of the period of initial issue.

Step 4.

To start one person company minimum capital required is one lakh indian rupees.

Step 5.

One you have chosen the name for your business. OPC will be added after the name so that your organization name would be different from other companies.

Step 6 .

Last step is Obtaining Certificate of Incorporation. It’s a legal document which carries information about your company. Government of India provides certification of Incorporation.

Characteristics of One Person Company

• One person company consists only one member who is shareholder/Directory.
• Easy to start the business and funs are easily available.
• Entire business would be managed by one person only and make it quite easy to handle all business related issues.
• Encourage the small size of businesses.
• Tax benefits
• Freedom of operation
• Limited Liability
• Cash flow statement is not required for one person company
• Minimum regulations and compliance burden is not there with OPC
• Borrowing Capacity
• Separate Legal Entity

Conclusion

One person company is good startup by Govt. of India for small entrepreneurs. This is the easiest way to start your own organization. This is an idea that is required to give enormous stimulus to Corporatization in the nation. The main care to be taken is that there should not be administrative confusion like the ones which hampered the development of Limited Liability Partnerships in this nation. Generally the guidelines encircled so far as for One Person Company have been extremely sensible.

One Person Companies are helping hugely in expanding the general economy of India. An ever increasing number of Entrepreneurs are coming up and setting up their business. Since, no intercession from any outsider is seen, it makes it more useful. One Person Company likewise gets opportunity from conforming to numerous prerequisites as typically appropriate to other private limited Companies.

OPC is intended to convey open network by means of open measures in modern Intelligence and the undertaking frameworks, and depends on a progression of models determinations.