By nature, One Person Company is a private limited company that was founded in 2013.
Frequently, I am asked by single founders if they are able to register a private limited company? Due to non-awareness of this type of company, people are still wondering what a one-person company is.
Today, we would like to tell you that if you are a single owner and want to establish the business, then you can choose One Person Company (OPC) as your form of business.
The Following is a list of ten reasons why registering an OPC is a good idea.
One Person Companies were introduced in 2013 and are by nature private limited companies. Also, as a corporation, it has a separate legal existence and will be liable in the event of a legal case, not you personally.
As an example, if Mr.X was injured by your product, he can sue your company for damages. However, he cannot sue you personally because you work for a separate legal entity from him.
No Minimum Capital:
Even though it was abolished in 2014, the public is still unaware of its existence. It is important to note that you do not need a minimum capital amount to register a One Person Company (OPC). It’s up to you to decide based on your capacity.
You are allowed to start a company with Rs.5000, for example.
No High Cost for Compliances
People know this to be the strongest myth. The OPC Company is the most free type of company out there.
OPC compliances are not to be feared, because they may cost you between $8000 and $10000 annually, but they help you prepare a legal file that can be used to apply for a loan, credit card, CC limit, or tender.
The majority of people are unaware that loans are funded based on your Cibil score, and if you have a bad score, you will have a tough time getting a loan. A company’s cibil score has no value if it has been incorporated because the OPC cibil score will be checked, which allows you to avail loan funding even if your cibil score doesn’t.
According to research, hiring good people in a private company is easier than under proprietorship, which makes it the most difficult part of starting a company.
Due to the lack of legal existence of proprietorships, they are not registered forms of business. Therefore, it is essential that a company is formed and a team is assembled.
Easy conversion into Private Limited Company
Moreover, OPC is not prohibited from becoming a private limited company once it is established.
One form is all it takes to convert the OPC into a private company under the law. It must have been at least two years since the last incident.
Minimum requirements to register OPC
Moreover, one-person companies in India are very easy to register. It is just a matter of fulfilling the following requirements:
It is necessary to have one founder and one nominee. An owner’s nominee will take over the company if he or she dies.
As well as the PAN card and Aadhaar card, the nominee must submit the bank statement.
An electricity bill and an official notice of registration (NOC) are required for the location where the company is to be registered.
Our OPC registration fee is only Rs.11,000 (all inclusive) and we can form your company in 5 to 8 days as soon as we receive the required documentation.
Private Limited Company Conversion Mandatory
By filing a single form, a One Person Company (OPC) must convert to a Private Limited Company once its turnover reaches Rs.2 crore and its capital reaches Rs.50 lakh.
Benefit of being an MSME
MSME in India can be registered by anyone, but registering as a private limited company certainly benefits you by providing easy access to loans.
Would you like to know how DP Accounting & Taxation Services can assist you in registering your One Person Company (OPC)?
At DP Accounting & Taxation Services, our expert tax and incorporation consultants can help you set up a One Person Company (OPC) in Ahmedabad, Gujarat, India. From Rs.4,999/- onwards, partnership firms will be able to register. For improving your knowledge and business, DP Accounting & Taxation Service is always available to you.