Incorporation of One Person Company is the latest form of registration. It arouses lots of doubts in the time of OPC registration. Let’s have the procedure format in the conversation styles. Venkat is in the idea to start an OPC to clarify his doubts he meet his friend Ram who is expertise about the company registration process in Coimbatore.
Venkat: Hello Ram! What is One Person Company Registration? How it offers more benefits than other types?
Ram: Hi Venkat! To reform the corporate law with the already existing pattern the one person Company registration (OPC) introduced in India. It is completely new way of business start-up. It offers more flexibility to the entity, Limited liability option these things do not exist in the sole proprietorship and conventional partnership company registration. Several countries like China, Singapore, U.K and Australia are already familiarized with this One Person Company registration.
Venkat: What is the Proper definition for One Person Company?
Ram: As per the Companies Act One Person Company as a company that consist only single person as its member. Further, members of the company are taking as the mere subscribers. The members are subscribed in the company’s Memorandum of Association. So, OPC is the effective form business has only a single share-holder. Single entrepreneur operate his business with less complexities.
Venkat: That’s good. You are giving enough details about the OPC. But I could not categorise One Person Company between traditional Sole proprietorship?
Ram: Don’t worry it is a common doubt that all the business people have. Both OPC and Sole Proprietorship seem to be same business structure. But actually it is not. In sole proprietorship company registration, the business owner solely bares the profit and loss. If he met any loss it will totally leads to the ceasing of personal asset.
Venkat: Sole proprietorship needs not any proper registration then why should I prefer OPC registration?
Ram: Well question venkat. Proprietorship Company needs not any compulsive registration process. One Person Company is coming under the mandatory registration process. To carry the limited liability, distinguish it as an entity and in complex situation promoter only liable to pay the debts of the company.
Venkat: Is proprietorship really a risky choice of business operation?
Ram: Not at all. To consider the involvement of personal asset sole proprietorship consider as a risk. For this complex purpose One Person Company registration is the best option. To be the safer side is always the smart decision in the business processing.
Venkat: What is the special feature of One Person Company?
Ram: There are lot of advantages could enjoy by the entrepreneur while choosing the One Person Company.
Like Private limited companies, LLP and public company OPC also defining as a private company. It is vary from the central factor it contains a single person. In other private companies at least 2 members to 200 members are the basic business promoters. All private companies need to appoint the nominees without any fail. It is a common procedure in the registration process.
Incorporation Of One Person Company with no perpetual succession:
In the OPC registration after the demise of the member, the nominee can accept or reject to become the sole member to take care of the company it is not prevailing one in other business registrations. They need to manage the business after the demise of the business without any second option.
From a single person to maximum 15 members can be the director of the One Person Company. No minimum paid up share capital is the additional advantage in incorporation of one Person Company.
Incorporation of One Person Company and other exemptions:
The Incorporation of One person company can enjoy lot of privileges. Getting loan and other way of exemption s are possible only in One Person Company than the private Limited Companies.
Venkat: There is lot of benefits comes under this OPC what id the Incorporation process following for One Person Company registration?
Ram: Incorporation process nothing but filing of actual and clear details of the company’s physical location, address, Name of the company and its members and so on. The nomination need to file before the registrar of companies with the registration application. The nominee can withdraw his name as a nominee at any time before the completion of such incorporation process.
Venkat: A foreign country citizen could apply for this OPC as business form in India?
Ram: No, it is not applicable one. Only citizens of India who are residing more than 180 days in India could start an incorporation of one Person Company as his business. It is not permissible for other country citizens.
Venkat: Is any conversion and modification applicable one in this one person Company registration?
Ram: Every form of business set the limit of its own turnover. When the limit exceeds the conversion of the company is inevitable one. Except sec 8 companies registration and other charitable purpose of registration it is modifiable one. Compulsory existing of 2 years and later it will be convert into other types like LLP and PVT LTD companies.
Venkat: Great options is any other less complexities avail in this OPC incorporation process?
Ram: Why not. There is no compulsion to conduct the annual general meeting
Financial statements are including one in the cash flow statements
Chartered accountant or company secretary need not sign the statements
A director can easily process the statement checking instead of the higher officials.
One Person Company can pay more and more remuneration comparing with other form of business registration. Hope these ideas will be helpful to your business registration.
Venkat: Of course Ram. Thanks for your valuable ideas on OPC registration. Then where should I register my company and who will help me?
Ram: For fast and easy registration process just click here.