OPC Registration Requirements
You can start your own company with the complete authorization for you alone through the company registration like One Person Company (OPC) in anywhere in India by the company act.
Corproots doing OPC registration process for many customers on satisfying their requirements for feeling best business service. You will be need to know more about OPC and its registration process before practicing, thus have look on here.
One person company (OPC) is introduced in India by the company’s act 2013. It is an updated act that is currently using for a single person company, earlier was based on the company’s act 1956 which includes minimum of 2 shareholders and directors for a private limited company registration. A complete freedom of the limited liability companies is an added advantage for this OPC.
Limited liability- Sole Proprietorship and One Person Company
The basic thing is that for a One Person Company your liability towards the business if fails and it will be limited only to the business assets rather than your personal assets. So that for a sole proprietorship company liability is unlimited that if the business fails for the instant you may have to lose the personal assets like home, personal bank accounts and so on.
Basic things about One Person Company (OPC)
Shareholder: A single shareholder is the major concept of One Person Company with 100 percent shareholding. While taking care of the company incorporation you should be a natural person who is an Indian citizen for the registration process. A society or any other corporate entity is not allowed to form a One Person Company.
Another important aspect about this type of company is that a person who have already registered for One Person Company then he/she is not allowed to start another OPC in his/her name. Even the Nonresident Indians and the foreigners are not allowed to open such company in India.
Single Director: In a One Person Company there may be only a single director heading the activities. But it does not mean that more than one directors is a problem in such a company, it is mentioned that the directors up to 15 can be allowed as per the Act.
In Indian Companies Act there is mentioned that in the Incorporation document of a One Person Company nothing is provided about the directors then it will be considered as sole shareholder and sole director in such company during the incorporation itself.
Nominee: It is concept that for a One Person Company the person can be nominate a Nominee to come forward to take care of the rest of the company’s functioning by producing a Nominee with his/her written consent if the person is not able work for the company like any death event or any other specific reason.
In this scenario the nominee as said can be an Indian citizen or a resident Indian if already a member of another One Person Company who has nominated can also be a member of One Person Company without any conflicts by the rules within 6 months. For the mean time any change of nominee at any instant is allowed.
Please note that the requirements of being a resident Indian and citizen of India also apply to the nominee. Further if the person so nominated becomes the member of such a One Person Company and is already a member of another One Person Company, at the same time, by virtue of rules has to decide within 6 months which one person company he has to continue. One more thing, the member can change the nominee at any point of time.
After the death of the person, nominee can take part the title of sole member of the company implementing all the rights and liabilities for the future. Even for the future nominee change the same rule is applied by making a written consent of the present nominee when any death events or unexpected case of problems occur.
Taxation: The tax rates applicable for a One Person Company is the same of the private limited company by calculating the annual profits, deducting all the allowable expenses from the sales turn over, the average tax rate will be 30 percent adding the education cuss
Related Party Transactions: Once the company has started then each transactions taking place needs to be recorded for the future reference from the legal perspective. It means that a company’s memorandum is prepared including the One Person Company enters into contract with the sole owner who also acts as the director of the company to the first meeting of Board of Directors.
For every new contract the company will inform the registrar by recording and reporting in minutes for the meeting of the Board of Directors to get an approval for 15 days.
One Person Company Incorporation
- Get Director Identification Number (DIN) and digital signature
- Apply for the company name
- Get the consent of nominee as per the required format
- Consent nominee form along with the Memorandum and Articles of Association of the company also the supporting documents is filed
- Obtain the final incorporation certificate