In recent years, the one-person company (OPC) has emerged to refine the sole proprietorship structure.
In an OPC, a single promoter acquires complete control over the company, limiting its accountability for its contributions. As a result, they will be the sole shareholder and directors. One-Person Company is a entity which independent from its promoter.
An OPC must be changed to a private limited company or a public limited company within six months if it achieves an average revenue of 2 crores three times in a row or obtains a paid-up fund of 50 lakh or more.
In a private limited company, the directors' personal property is always safe, regardless of the company's debts.
When the proprietor dies, the sole proprietorship comes to an end. Since an OPC company has its own legal identity, it would pass to the nominee director and continue to exist.
Because an OPC's must be audited every year, it create trusts among vendors and financial institutions.
Obtain all directors' DSCs and DINs.
Submit a request for a name reservation
Fill out the Spice+ form to start your business.
Register your new business with the PAN and TAN.
A certificate of incorporation with a PAN and TAN is issued by ROC.
Open a bank account and begin doing business.
If Property Owned by Director /Shareholder
If Rented Property
Any one of the following Documents Require from Below
Nominee in Case of OPC
In the event of death, disability, or other unforeseen circumstances, an OPC must name a 'Nominee' who will-
Nevertheless, such a Nominee's consent form to act as nominee must be obtained and filed with the ROC along with the MOA and AOA at the time of incorporation.
A Nominee may withdraw his consent by notifying the only member and the OPC in writing. Following 15 days of receiving the notice of withdrawal, the single-member nominates another person as nominee.
The Companies Act, 2013 allows for the incorporation of five different types of OPCs.
According to the Ministry of Corporate Affairs' criteria, OPC company registration is only available to Indian residents and only once at a time.
Yes, an OPC is just slightly less expensive than a private limited company.
No, one OPC can be formed at a time by a single person. The nominee in an OPC is also subject to this requirement.
If the OPC's paid-up share capital reaches more than 50 lakh, the OPC must convert itself into a private company.
• If the annual turnover has exceeded two crores for three (3) years.
Yes, at the time of incorporation, you must select a person and have his prior consent in the Form INC-3.