What Is One Person Company Registration In India ?

One Person (Private Limited) Company, or OPC, is the most common type of corporate legal structure for small businesses in the initial stages when they are started, managed, and operated by a single individual. The Indian government supports entrepreneurs in the nation and has therefore introduced new and more advantageous programme for their development and benefit. Various financial advisory firms offer company registration services, making it simpler for entities to get registered.

One Person Company, often known as OPC, is a traditional idea, much like a proprietorship firm, where one person owns and operates the entire company. The difference here is that we may now incorporate a company, which is a large-scale proprietorship REGISTERED with the central government with the aid of the advisory firms that provides company registration services in surat, India as opposed to just doing small-scale proprietorship activity. The entire and only person in this situation is the Incorporated Company. There is only just one individual that has a significant role in this company in terms of ownership and decision-making, and they are the Manager as well as Owner, i.e. Direct and Shareholder.

As per provision of section 2(62) of the Companies Act, 2013 defined (62) “One Person Company” means a company which has only one person as a member.

For the formation of OPC – Only a natural person who is an Indian citizen and resident in India­­-

• shall be eligible to incorporate a One Person Company;
• shall be a nominee for the sole member of a One Person Company.

The term “resident in India” means a person who has stayed in India for a period of not less than 182 days immediately preceding one calendar year.

Any Proprietorship entity is referred to as a One Person Company when it is registered with the Government of India (specifically, the Ministry of Corporate Affairs) (OPC) and only then will you be able to take advantage of the advantages that any OPC is granted by the Central Government, such as limited liability, existence after the founders have passed away, tax breaks, etc.

The advantages One Person Company Registration in India are listed below. 

• It is regarded as a separate legal entity, which means that it establishes its own corporate structure independent of the founders.
• You get Protected Liability as a result. Let’s put it this way: starting a sole proprietorship requires tremendous effort and, most importantly, a large financial investment from all available sources. Being the founder and owner means that you are personally liable for any obligations and liabilities, in addition to being responsible for the business’s benefits, assets, and earnings. You are only liable for the sum that you personally invested in your firm if it is an Incorporated Company, which is registered as a One Person Company. You are prohibited from using your personal assets to pay off the debts and obligations of the incorporated business company.
• By separating management from ownership, directors will eventually be in charge of running the company’s daily operations. The advantages of the investment in the company go to the shareholders, who are the true owners.
• Your entity will also have more credibility with potential clients, suppliers, and employees when it is registered with the Central Government, namely the MCA, as an Incorporate Company, i.e. registered as a One Person Company, which is helpful for effective operations.
• Most importantly, it aids in growth. You may grow your firm both organically and inorganically with the aid of this credibility.
• A special clause in One Person Company will guarantee that the Company will continue to exist. The MOA, or Memorandum of Association, of an OPC must list the name of a NOMINEE (with that person’s prior written approval), who will succeed the Director as a member of the company in the event of his death or inability to enter into a contract.

Exemptions provided to One Person Company

As was previously said, the Government of India supports the nation’s entrepreneurs and has therefore introduced new and more advantageous programmes for their development and the benefit of One Person Company owners.

OPCs have fewer compliance-related burdens because they have received a number of exemptions.

• The preparation of a cash flow statement as part of a financial statement is not required of OPC.
• The annual return can be signed by the company director if an OPC does not have a company secretary
• An annual general meeting is not necessary to be held by an OPC.

So, reap the benefits of the chance that the central government is offering and register your firm as a one-person company with the aid of advisory firms that provide Company Registration services.