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OPC Company Registration

    OPC Company Registration

    Section 2 (62) of the Companies Act defines a one-person company as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.

    OPC Company Registration is generally created when there is only one founder/promoter of the business. Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead of sole proprietorship business because of the several advantages that OPCs offer.

    AdvantagesDisadvantages of OPC
    OPCs have been provided with a number of exemptions and therefore have lesser compliance related burden than a Private Limited CompanyLimited membership
    Organized sector of proprietorship companySuitable only for small business
    Minimum requirementsThe line between the ownership and control is blurred which might result in unethical business practices
    The liability of the member will be limited to the unpaid subscription moneyA person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company
    Easy to get loans from banks when compared to a proprietary firmNRIs not allowed to incorporate OPC
    Complete ControlOPC cannot carry out Non Banking, Financial Investment activities including investment in securities
    Easy to manageOPC cannot be incorporated or converted into a company under Section 8 of the Companies Act.
    No Perpetual succession

    OPC Company Registration Process

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      Documents Required for One Person Company Registration in India

      FAQs for One Person Company Registration

      Yes, you can convert your existing business into One person Company (OPC). But since it is complex procedure, we need to talk to you directly. Please drop your query in the contact form so that we can call you and explain you the things.

      Taxation under One Person Company is very similar to the Private Limited Company under which tax is imposed on profits earned by the company @ 29%. Further, the tax rates are further reduced to 25% for Small and Medium Enterprises.
      This is different from the proprietorship under which slab rate is applicable. Further, proprietors can avail the benefit of presumptive taxation, but One Person Company cannot.

      One person Company (OPC) is a private limited company and hence eligible for startup benefits as laid down by the government under the startup India scheme. However, the biggest problem with this form of business is that it cannot raise funding from a venture capital or angel investor by selling its stake/shares. A one person Company cannot sell its stake because there can only one shareholder in the company.

      There is no minimum capital requirement to register a One Person Company (OPC) in India. You can register the One Person Company (OPC) as per your choice of capital.

      Startup is the innovation category of a businessman who wants to grow very fast within a short span of time like the previous startups did like Flipkart, Ola, PayTM, etc. They could only become so big because they were able to raise the capital in a timely manner.