What is One Person Company in India?

A business substance keep running by a sole proprietor with the advantage of restricted risk, offering assurance to its investors is a One Person Company. Just a single Director is required to shape a One Person Company.

With supporting records, for example, DIN, DSC, and so on., an OPC can be enrolled inside two weeks.

Highlights of One Person Company

Chief

As the name recommends, at least one Director and one part is required to frame a One Person Company. Thus, the sole investor can be simply the Director. A most extreme number of 15 Directors are feasible for a One Person Company.

One Shareholder

A man of Indian starting point and an Indian resident can shape a One Person Company.

Candidate for the Shareholder

An investor may name someone else as an investor in the event of death or insufficiency of the first investor. The candidate might give its agree to be selected as the sole investor.

Tax collection

As the legislature has not entirely determined, the expense rates for any Private Limited Company are pertinent to a One Person Company.

Consistence

One Person Company has the use of not conforming to numerous prerequisites that are pertinent to a Private Limited Company.

Terms and Restrictions of One Person Company

A man might not be qualified to fuse more than a One Person Company or progress toward becoming candidate in more than one such organization.

Just a man who isn't a minor is qualified to be a candidate of the One Person Company

One Person Company can't be consolidated or changed over into a restricted organization

A One Person Company can't complete Non-Banking Financial Investment exercises incorporating interest in securities of anyone corporate.

Such an organization can't change over deliberately into any sort of organization unless two years have lapsed from the date of fuse of One Person Company, unless the capital is expanded past Rs.50 Lakhs or its normal yearly turnover amid the applicable period surpasses Rs.2 Crores

Points of interest of One Person Company

One Person is a different lawful element from its individuals

Obligation of part is constrained

One Person Company being a Private Limited Company is most appropriate for new business visionaries

As on account of some other Company, compulsory prerequisite of an inspector isn't material

The need to hold various Board Meetings and General Meetings does not make a difference to One Person Company

Procedure to Incorporate One Person Company

Get Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed Director(s) in the event that it isn't as of now accessible

Check for Company name accessibility by documenting structure INC-1

Get assent of chosen one for the sole investor

Draft Memorandum of Association and Articles of Association

Once the name of the Company is affirmed, sign and record different archives electronically including MOA and AOA alongside shape INC-2, which is required for the joining of the Company, with the Registrar of Companies

Shape INC-2 must be recorded inside 60 days of documenting structure INC-1

Installment of Requisite charge to Ministry of Corporate Affairs and furthermore Stamp Duty

The Registrar of Companies examines and approves the archives

Receipt of Certificate of Registration/Incorporation from the Registrar