One Person Company
One Person company is another form of doing the business in India. It combines certain attributes of Sole Proprietorship Business as well as Corporate entity. In a relatively smaller organizational set up, an owner can incorporate a One Person Company under Companies Act, 2013 which can start function with the help of single director. One Person Company saves the procedural hassel from convening Board Meeting or General Body meeting for transacting the important business of the company. However, such company have to compulsorily nominate a person as the Nominee Director in its Memorandum and Articles of association of the company who will be vested with the rights of single director and owners.
How to form a One Person Company – Documents Required
- Digital Signature Certificate (DSC)
- Directors Identification Number
- Application for Name Approval
- Incorporation Documents along with address Proof for Proposed Place of Business
- MOA / AOA of the company
- PAN Card of One Person Company
- Statutory Registration e.g. MSME/GST/TAN etc.
- Open a Current Account in the name of OPC
- Start Doing Business
- Easy to Start as its incorporation formalities are lesser than other body corporates.
- Easy to transact the business as all administrative powers are vested with single individual.
- OPC can not voluntarily convert itself into Private Limited / Public Limited company within 2 years of its incorporation.
- Mandatory conversion into Private Limited Company or Public Limited Company in case of its breach of threshold limits i.e. Paid up share capital exceeding Rs. 50 lacs or Average Annual Turnover exceeds Rs. 2 Cr.
Ideal for Whom
- Generally for family run business to be operated by a Single Person and wishes to take benefit of separate legal entity and limited liability.