A person as a single promoter can incorporate a Company and have the benefit of limited liability and separate legal entity of a Company. With OPC, there is no requirement for a Partner or Co-Founder.
Pre-requisites for Incorporating a One Person Company
The name with which the promoters are desirous of running their business form should be unique and should not resemble with any ongoing business form as per Incorporation Rules and Companies Act, 2013.
A person above the age of 18 is capable to incorporate a one person company and be the Directors and Subscriber of the company.
The sole person who will manage the business of the company shall be appointed as the Director and will be the subscriber of the company.
The funds to be infused in the company for running the business chores of the company are in the form of Capital. There is no minimum and maximum amount stated for the infusion of funds in the company in Companies Act, 2013.
The place through which the activities of the business are to be carried on in legal terms is said to be the registered office of the company. The registered office should be capable of receiving and acknowledging all communications and notices as may be addressed to it.
Contact details in the form of Mail Id and phone no are to be registered at the time of incorporation of a company.
Process of Incorporation
- Availing the name of the Company
- Availing DSC of the members of the company
- Documentation and procedural work
- Filing of Incorporation form with Ministry of Corporate Affairs
- Getting Certificate of Incorporation with PAN, TAN, ESIC, PF and DIN.
Benefits of Incorporating a One Person Company
- A single person can start a one person company under the name of OPC Private Limited.
- The liability of the single shareholder in an OPC is limited to the unpaid subscription money in his/her name. This means that his/her personal property is completely safe from creditors of the business.
- The Companies Act also provides for a person, nominated by the stakeholder, to take over the reins of the company in the event of the death or inability of the said stakeholder.
- An OPC is registered under the Companies Act and enjoys the same privileges that come with a firm being listed as a private limited company.
- Due to single person ownership, there is no profit-sharing option
