One Person Company
A One-Person Company (OPC) is a corporate structure designed for individuals who want to start a business independently. It offers the advantages of a company with limited liability, without the complexities of a partnership or a large corporation. This concept is particularly beneficial for solo entrepreneurs who seek the benefits of a One-Person Company without the need for partners.
About One Person Company
According to the Companies Act 2013 by the government of India, has introduced a new project as One Person Company. As the Project name suggests the ownership and establishment of the company goes in the hands of a single individual. A person manages & controls the whole company. The OPC has all the features of a business profile from endless sucessions, restricted liability, & a separate Legal entity.
Before regulations of the Companies Act Act 2013, A single person was not allowed to establish any company or business. If any individual wants to start any company the person cannot opt only for a sole Proprietorship as due to the criteria of mandatory 2 Directors or stakeholders to start a company. In the case of a private company, a minimum 2 directors & members are needed & in a public company 3 directors & 7 members are required. A single person cannot incorporate a company earlier.
Key Features of One Person Company :
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Restricted Liability: The personnel assets of the owner are saved from one person's company liabilities.
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Single Proprietor: Only a single individual can take up the position of the Director or stakeholder.
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Independent Legal Entity: This means that the owner of the company can have assets, and suffer penalties, and with it, they can enter into agreements in their own names.
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Simplified Compliance: OPC usually has fewer regulatory needs, as compared to traditional company types, Which makes it easy for them to operate.
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Conversion: The company can easily convert into a private or public company as it gets to a point of paid-up Capital.
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Tax Concessions: Depending on the state & jurisdiction, OPC can get specific tax benefits.
Requirements for being One Person Company :
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Registration: The business should be registered with the correct government administration.
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Minimum Capital: There may be a minimum capital requirement, which varies by jurisdiction.
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Director: The sole director must be a natural person and a resident of the country.
Advantages of One Person Company :
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Clarity: One Person Company registration is easier to manage and run compared to larger corporations.
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Credibility & Trustworthiness: Operating as a registered company can enhance credibility with clients and suppliers.
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Management: The owner has complete control over business decisions.
Here are the steps to Incorporate on OPC
Incorporation through SPICe (Without filling RUN)
The company Stakeholders can receive benefits of five Different services name Reservation, Allotment of Director Identification Number (DIN), Incorporation of the new company, Allotment of PAN & Allotment of TAN in one form by enrolling for Incorporation of the new Company through e form it is kind of a simplified Performa for Incorporation company Electronically with eMoA, EAOA. No requirement to reserve a name individually before filing SPICe. One name for the proposed company can be applied through SPICe (INC-32).
Incorporation through SPICe (With RUN)
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Name reservation: RUN service should be utilized for name availability.
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Incorporate OPC: After name authorization, form SPICe shall be whetted for incorporation of the OPC within 20 days from the date of approval of RUN. The corporation shall file form INC-22 within 30 days earlier form SPICe is documented in case the address of correspondence and registered office address are not same.
Benefits of One Person Company in India
1. Only Control: The only owner will have full ownership over all the decisions, the executions to Market changes
2. Limited Liability: The owner will hold limited liability to the funds, personal assets, etc,
3. Simplified Process: OPCs face fewer regulatory needs compared to larger corporations.
4. Tax Benefits: OPCs get benefits from lower tax rates under the Income Tax Act.
5. Single Entity: When the ownership is under one person, The process becomes simple with a structure that makes it more centered work.
6. Credibility: this business under a one-person company is termed as a separate legal body, and this increases its credibility with stakeholders.
7. Ease of Transition: the conversion process after the expansion into a private limited company(PVT) is easy & fast
8. Flexible Operations: The owner has the whole decision-making power in terms of management & strategy planning.
9. Access to Funding: person businesses are registered under the government of India making it easy for them to be able to get connections & sources for funds & investments.
10. Ownership Transfer: If in case of owner's death or is unfit, the business can be transferred to a nominee, to make the business run continuously.
Reasons to Select Startupflora for your business guidance.
We serve as a perfect place to help news startups to grow & establish their businesses & to run on set format.
We provide many services for a wide range of businesses from all sectors, we help in the startup India registration process, tax exemption & benefits, help find investors & enroll for government grants, and Online registration for one person company.
With funding assistance, we provide first-hand service from business plans to successfully execution.
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Startup India Expertise: We guide our clients to the online registration process under the Stratup India Initiative schemes & benefits. And help them get maximum profit in their business.
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Personalized Support: Every business i different & we understand that to the fullest. For one-person company, our team helps in creating customized plans based on specific needs & gives solutions.
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Time and Cost Efficiency: We use a smart approach to process & streamline the idea to save time& money.
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Strong Network: we have good sources & connections with banks & other financial aid proving investors & mentors to help in the grounds for our startup clients.