One Person Company Registration
One person company is a new concept of formation of business introduced by Companies Act,2013 in which a single person can incorporate a body corporate. Earlier, a single person was not allowed to incorporate a company.
Section 2(62) of the Companies Act,2013 states that One Person Company means a company which has only one person as a member.
Section 3(1) (c) of the Companies Act clarifies that an OPC will be considered a Private Limited Company in all legal matters and disputes. All prevailing rules and regulations applicable to a private company will apply to an OPC as well.
In One Person company Director and member can be the same person. Every OPC need to appoint its nominee at the time of incorporation.
- Annual Return of an OPC can be signed by director itself. Company secretary is not required to sign annual report
- OPC is not required to hold any annual general meeting like private limited companies
- Cash Flow statement is not a part of financial statements of OPC and hence OPC is not required to prepare Cash Flow statement
Benefits of OPC
- OPC makes the unorganized sector of proprietorship into organized sector since Proprietorship is also owned by single person and OPC also owend by single person but OPC is governed by Ministry of Corporate Officers
- All the compliances applicable to Private limited companies are also applicable to One Person company but there are some exemptions in it which makes little easy for OPC to meet compliances
- No need of any minimum share capital
- Shareholder enjoys limited liability in case of OPC and hence the personal assets of Shareholder remains safe.
Documents required for OPC
- Pan Card
- ID proof
- Latest Bank Statement
- Electricity Bill as address proof of registered office
- No Objection Certificate from Owner of registered office
- Identity and address proof of Nominee