ONE PERSON COMPANY

 

One Person Company is another form of doing the business in India. It combines certain attributes of Sole Proprietorship Business as well as Corporate entity. In a relatively smaller organizational set up, an owner can incorporate a One Person Company under Companies Act, 2013 which can start function with the help of single director. One Person Company saves the procedural hassles from convening Board Meeting or General Body meeting for transacting the important business of the company. However, such company have to compulsorily nominate a person as the Nominee Director in its Memorandum and Articles of association of the company who will be vested with the rights of single director and owners.

 

Documents Required

  1. Digital Signature Certificate (DSC)
  2. Directors Identification Number
  3. Application for Name Approval
  4. Incorporation Documents along with address Proof for Proposed Place of Business
  5. MOA / AOA of the company
  6. PAN Card of One Person Company
  7. Statutory Registration e.g. MSME/GST/TAN etc.
  8. Open a Current Account in the name of OPC

 

Advantages

  1. Easy to start as its incorporation formalities are lesser than other body corporates.
  2. Easy to transact the business as all administrative powers are vested with single individual.

 

Disadvantages

  1. Bar on voluntarily conversion into Private Limited / Public         Limited Company within 2 years of its incorporation.
  2. Mandatory conversion into Private Limited Company or Public Limited Company in case of its breach of threshold limits i.e.         Paid up share capital exceeding Rs. 50 Lacs or Average Annual         Turnover exceeds Rs. 2 Crores

 

Best Fit For:-

  1. Generally for family run business to be operated by a Single Person and wishes to take benefit of separate legal entity and    limited liability.

 

 

LEGALLANDS LLP consistently endeavours to get together the necessities and prerequisites of its customers and demonstrate to be a beneficiary aid as and at whatever point required. To bring more subtleties on same, contact our client assistance official today at connect@legallands.com

 

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