OPC Registration Registration – A complete Guide
OPC is one person Company. In a one individual organization, you are the chief just as the main investor. While that doesn’t actually assist you with raising more assets, it makes it simpler to maintain an independent venture and not need to stress over accomplices doing wrongs and you winding up paying for them. OPC registration states that if the disastrous occurs and your business winds up in the circumstance where it can’t pay an obligation, you can have confidence that you won’t need to sell your home, vehicle, adornments or different belongings to pay the obligation, and that is on account of the restricted risk this legitimate structure includes.
Act
According to Rule 3 of the Companies Rules, 2014, it explains that solitary a characteristic individual. It is required for the sole director or the investor to be an Indian Citizen just as an Indian Resident, being which he will be allowed to start a One Person Company. OPC registration states that the term ‘Indian Resident’ demonstrates about an individual who has remained in India for a range at the very least 182 days of the promptly going before one schedule year. According to Section 9 of the Citizenship Act, 1955, Indian Citizenship would be esteemed void or ended of that individual who gets citizenship of some other nation. According to Section 7A of the Citizenship Act, an individual who obtains an Overseas Citizenship would be perceived as a resident not having total citizenship of India.
Salient features of One Person Company registration
OPC registration gives the salient features.
Corporate Body
It is a sort of organization that can be started and worked by a sole advertiser with restricted risk security in the nation. A One Person Company registration, considered as a lawful substance, permits simple adaptability of proprietorship and doesn’t end until broke up. Additionally in case of any legitimate case, the organization would be at risk and not the person.
Least Capital not needed
OPC registration states that so as to begin a One Person Company, a base capital sum isn’t needed. The organization can be begun according to the limit of the sole advertiser.
Consistent Procedure for Registration
OPC registration states that the system to register a One Person Company is basic which comprises of the accompanying advances:
The Sole Promoter and a candidate are required for enlisting a One Person Company.
Records of the sole advertiser and the candidate which comprises of PAN Card, Bank Statement and Aadhar Card are required.
The Electricity Bill and the No Objection Certificate of the area where the organization is fused are required while fusing the organization.
Advantages of OPC registration
OPC registration gives the benefits.
Single individual possession
This is the first and greatest bit of leeway of the One Person Companies. An OPC private restricted organization has a solitary proprietor that implies the organization has just a single investor. The proprietor, along these lines, can settle on and take fast choices and command over the substance according to their vision and prerequisites.
Restricted Liability
One of the most prosperous reasons why individuals are prepared to space for a One Person Company is the desire for restricted risk. At the point when business isn’t doing acceptable and things escape benefit at that point it’s important to make sure about the organization’s very own advantages. OPC registration states that the proprietor or the investor in the OPC is exclusively responsible for business claims. A One Person Company offers the advantage of restricted obligation to business people.
Least Requirements
OPC registration states that an OPC doesn’t have countless necessities. One Person Company prerequisites are:
Minimum 1 investor
Minimum 1 chief
Investor and head of the organization can be a similar individual
Minimum 1 chosen one
Minimum Compliance trouble
As the segment 2(68) of the Companies Act, 2014 peruses, a One Person Company is remembered for the ‘Private restricted organization’ definition, consequently the guidelines for privately owned businesses will be similarly applied on the OPC too. Various exceptions have been accommodated a one individual organization and along these lines it has lesser consistence trouble.
Simple to oversee
One Person Company can likewise be said a little organization and in this way is anything but difficult to oversee. OPC doesn’t need Annual gatherings. An OPC can lead at any rate one gathering of the top managerial staff every 50% of a year. Nonetheless, the hole between the two gatherings must be over 90 days. Likewise, the arrangement of a majority for gatherings of the board under area 174 of the Act doesn’t have any significant bearing to an OPC where there is just a single director.
Disadvantages of OPC registration
OPC registration gives the disadvantages.
Members
It is one of the significant disservices of the One Person Company. There can be a base and greatest one individual in particular. Likewise if an individual is holding share in the OPC, or is a part or chosen one of the organization then he should not be a minor. This surmises a minor isn’t qualified for every one of these situations in an OPC. Counting this, lone Indian resident can be qualified to turn into a part or candidate of the One Person Company.
Appropriateness for private ventures
The idea of One Person Company has risen as a key more reasonable for independent companies. According to segment 2(68) of the Companies Act 2013, an OPC can have Rs50 lakhs as the most extreme settled up share capital and Rs 2 crores as the greatest yearly turnover. In the event that in any case the second comes and any of this imprint penetrated, at that point the One Person Company will must be changed over into a Private restricted organization or a Public Limited Company.
Tax Liability
The One Person Company idea is without a doubt a decent idea which engages individuals to consider opening a start-up yet the idea doesn’t go under IT act and in this way such organizations are in a similar expense chunk. 30% is the fundamental Income Tax rate (IT rate) for the One Person Company which may inevitably bring about higher expense rates looking at IT chunk rate for people.