One Person Company Registration

One Person Business

• A one-person company is a unique form of entity whereby a single person can form a company under the Companies Act of 2013. OPC permits to have the ownership and management of a company by the individual in his name wherein the idea of limited liability and the concept of succession are combined with the concept of a company.

• A company could only be formed by two people before the Companies Act of 2013 took effect. The Companies Act of 2013 encourages the formation of personal companies (OPCs) in India. It regulates the registration as well as the operation of a single-person company in India. Unlike other public companies, which must have at least two directors and two members to register the company, one person can register a company.

Advantages Of OPC Company in India

Legal Status

The member provides the OPC registration with distinct legal entity status. The only person who registered the OPC is entitled to the protection of a separate legal status. Neither can the member be held liable personally for the loss of the company, but his or her liability is restricted to the value of the shares that he or she has. In this regard, the OPC and not the member or director may be sued by the creditors.

Easy Availability of Funds

Companies registered under one person in India can easily raise venture capital, angel investors, incubators, etc because this is a private company. Now, getting money is not a tough job.

Less Compliance

Under the Companies Act of 2013, certain exemptions have been provided to the OPC from compliance requirements. The OPC need not mandatorily prepare the cash flow statement. Neither is the secretary of the company required to provide any annual reports nor account books to be maintained.

Easy Integration

And one person company in India can easily get integrated without any legal hassle. A member who is also a director must give approval for integration. There is no requirement for minimum paid-up capital.

Easy to Manage

Administration of the OPC can be made very easy by letting a single person both find and lead it. The process of making decisions is very simple and is done quickly. The member can easily pass both ordinary and special resolutions by putting them in writing in the minutes book and having just one other member sign them. Because there will not be any internal conflicts or disputes, managing the company will be very easy.

Constant Continuity

The OPC can have the function of continued succession even with one member only. A nominee must be appointed by the sole member upon registration of the OPC. The nominee will take over the running of the company in case one of its members dies.