Under the company’s act 2013 a new concept has been introduced as One Person Company, where a single ownership and a single shareholder is required. Sometime the owner can be two but the shareholder will remain single person. Unlike the traditional manner of having at least two member. In India the motive of introducing this concept is just to increase the entrepreneurs in market which will lead to grow the economy, which helps in promoting small business, trader and limits your liability.
Benefits of One Person Company:
Limited Liability: The liability of the member or owner is up to the extent of his share in the company.
Transferability of share: As the OPC has only one shareholder the share can’t be transfer, even transferring entire share is not possible as it will change the entire structure of company due to change in ownership.
Quick decision making: An OPC have a single ownership which makes the decision making very easy and quick for smooth business working and work execution.
Small scale industry: OPC is a small scale industry which support in various benefits working as it helps in rising funds from bank, low interest rate where as they get benefits in foreign trade policy.
Identity Proof- PAN Card, Aadhar-card, Passport, Driving License, Voter ID, Permanent account number, Address proof & 3 photographs (Passport size) Address Proof- Telephone bill, Mobile bill, electricity bill, water bill.
Q1. What are Minimum Requirements for a OPC?
• Same director and shareholder;
• Minimum 1 Shareholder;
• Minimum 1 Nominee;
• Minimum 1 Director;
Q2. How to incorporate an OPC?
Incorporation through SPICe (Without filling RUN) Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) - Simplified Proforma for Incorporating Company electronically (SPICe) - with eMoA (INC-33), eAOA (INC-34). In case eMoA, eAoA are not applicable, users are required to attach the pdf attachments of MoA and AoA. There is no need for reserving a name separately before filing SPICe. One name for the proposed company can be applied through SPICe (INC-32).
Incorporation through SPICe (With RUN)
Name reservation: RUN service shall be used for name availability.
Incorporate OPC: After name approval, form SPICe shall be filed for incorporation of the OPC within 20 days from the data of approval of RUN.
The company shall file form INC-22 within 30 days once form SPICe is registered in case the address of correspondence and registered office address are not same.
Q3. Who is eligible to act as a member of an OPC?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
Q4. A person can be a member in how many OPCs?
A person can be member in only one OPC.
Q5. What if a member of an OPC becomes a member in another OPC by virtue of being a nominee in that other OPC?
Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days.