Why should I choose to register my business as OPC?
A one-person company is one that is formed by one person, who may be a resident or an NRI, and has the characteristics of a company as well as the benefits of a sole proprietorship.
What are the advantages of choosing one person company?
Advantages of OPC registration-
● Individual Ownership
For OPC registration, only one shareholder/member is required. He obtains gets ownership of the corporation.
● Less compliance
In comparison to a private limited company, a one-person company requires far less compliance.
● Limited liability
A single shareholder's liability is restricted to the amount of paid-up share capital, and they are not liable for the company's unforeseeable losses.
● Separate legal entity
A one-person company is a legal entity distinct from its shareholder or director. It helps the smooth operation of the business.
● Perpetual existence
It has perpetual existence. It is not going to be affected by the insolvency or death of its member/director.
● Organized Sector of Proprietorship
OPC will convert the unorganized proprietorship sector into an organized private limited business.
How many directors are compulsory for a company?
One-person company- 1 director required,
● A private limited company- 2 directors required,
● A public limited company- 3 directors required and
● A producer company – 5 directors. required
What are the mandatory documents required for registering a One Person Company?
Mandatory documents which are required to register a company in India are identity proofs and address proofs. These documents are-
● Pan card
● Aadhaar
● Passport/driving license/voter id
● Rent agreement/lease deed with receipts
● Utility bills
● NOC from owner, if rented property
What is the capital required to start a One person Company?
You can start a One Person Company with minimum capital of Rs. 1 but it is recommended to have share capital sufficient enough to fuel the company for its initial stage.
Who can become an OPC nominee?
A nominee is a person appointed by a company member to operate the OPC after his death or absence. However, the nominee cannot be a minor.
Can the member of the company remove the nominee?
To update or delete the nominee, the member must notify the registrar. He should also notify the company of the change. He has 15 days to appoint a fresh nominee
Are FDIs allowed in One Person Company?
No, FDI is not permitted in a One Person Company. If OPCs seek FDI, they will lose their one-person company status.
Can a foreigner start an OPC in India?
Yes, Finance Minister Nirmala Sitharaman announced amendments to the rules governing one-person enterprises during her budget statement on Monday, February 1, 2021. The change now allows NRIs to establish One Person Company (OPC) in India. This change takes effect on April 1, 2021.
Can I become a member of more than one OPCs in India?
No, you cannot be a member or nominee in more than one OPC.
Can I change my business from OPC to Private limited company?
Yes, you can convert your One Person Company to another type of company by meeting certain requirements, such as
• waiting two years from the date of registration of the OPC,
• having a paid-up capital of more than Rs.50,00,000, or
• having an annual turnover of more than Rs.2 crores.
Can a One Person Company have more than 1 director?
According to the Companies Act of 2013, a One Person Company must have at least one and no more than fifteen directors.
Should I be physically present at the time of the registration process?
No, all processes are online, you have to share your Identity proof and address proof.
What are the factors considered while choosing the company name?
There are three factors considered while applying for a company name—
● Name should not be matched with the existing one.
● Name should not be registered as a trademark.
● It should not be prohibited under Emblems and Names act.
How many days does it take to register a one person company?
KNAP Advisory helps you to register a One Person Company within 5 days.
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