One Person Company
Before the Companies Act of 2013, only two people could create a company. Now, the Act allows One Person Company (OPC) formation in India. It governs registration and functioning. Unlike public or private companies needing multiple directors and members, OPC needs just one. According to Section 262 of the Act, registering an OPC in India is legal. It requires a single director and member. This type has minimal compliance compared to private companies.
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Why Opt for One Person Company (OPC)
- Legal Standing: OPC has a distinct legal entity status, protecting the sole member from personal liability. Creditor lawsuits target the OPC, not the member.
- Easy Access to Funding: OPC can raise funds through various sources like venture capital and angel investors due to its private company status.
- Less Conformity: OPC enjoys exemptions from some compliance requirements under the Companies Act of 2013. It's not required to prepare cash flow statements, provide certain annual reports, or maintain certain account books.
- Easy Integration:Integrating an OPC is straightforward without legal complications. A member serving as a director provides integration approval, and there's no minimum paid-up capital requirement.
- Easy to Manage:OPC administration is simplified as a single person can manage and lead it. Decision-making is swift, with easy passage of resolutions. Internal disputes and delays are minimized.
- Constant Repetition: OPC has perpetual succession even with one member. A nominee is chosen during incorporation to take over if the member passes away.
Necessary Documents for Private Limited Company Registration Online:
- Scanned copy of a current bank statement.
- Electricity, gas, phone, and mobile bills for utility verification.
- Rental agreement transcribed in English and provided in digital format.
- Landowner's no-objection certificate in digital format for registered address.
- Scanned copy of property or sale deeds in English (if property is owned).