Over the last few years, there has been an exponential growth in solo entrepreneurs that prefer to establish their businesses and run them with the benefits of a registered corporate company. Such visionaries are provided with the One Person Company (OPC) form of the Company in the Companies Act, 2013. This concept of operation called the OPC registration can be considered a revolution that gives individual entrepreneurs the perks of having a get up a get down operation sold to them as a private limited company, with its limited liability, legal status, and bearing business credibility.
You start your business as an OPC to protect your freelancer assets from the requirement to sleep with creditors and benefit of having a corporate status than a freelancer one to boost your professional image before your clients, banks, and interested investors.
One Person Company (OPC) is a form of a private limited company which only possesses one shareholder and also only one director and this may be the same individual. It is a compromise between single ownership and a normal privately owned company.
Incorporated under the planning (2) 62 of the Companies Act, 2013, OPC is a formal version of businesses that is developed by an individual entrepreneur without the need to associate with any other partners. It possesses a legal individuality and is appropriate not only to those who want to be only moderately liable but at the same time have the whole control over the business.
Legal Necessity: OPC registration is enough to make sure that your company consults the legal framework created by the Ministry of Corporate Affairs (MCA). It also renders your business credible, makes your business entitled to government schemes, and eliminates risks.
For Director/Shareholder:
In respect of Nominee Director:
In respect of Registered Office:
Government Fees:
Our Profession Charges:
Total Cost: Costing begins 5,999 + government charges
Therefore, it is essential to file and convert as soon as possible (in case it is necessary).
Conversion will be required, yes; in case annual turnover is more than 2 cr or when the paid-up capital is more than 50 lakh.
During the registration, yes a nominee shall be appointed.
No, just the Indian citizens that are resident.
Indeed, the whole procedure is completed via the MCA portal and e-signature.
Yes, though it only permits a single shareholder, there are no limits on the number of directors permitted by the company which can be as far as 15.
Indeed, but exclusively to the single member. Shares are not allowed to be issued publicly.
Indeed, OPCs can receive benefits in terms of Startup India and MSME programs.
After its incorporation it continues to exist as long as compliance is adhered to.
Union or supplies deemed to be interstate; except where, in either case, the turnover or value of services exceeds 40 lakh rupees (20 lakh in case of the services), this section will not apply.
Renewal is not required, compliance and ROC filing should be carried out once in every year.