One person company registration is considerably straight forward with less documents required for the successful completion. Additionally, as the name suggests the minimum requirement is 1 stakeholder as the member of the company. It allows some of the basic advantages like full legal existence to the company, perpetual succession, and enjoy a separate entity in due compliance with law and order. The minimum requirements of the procedure are-
- Minimum 1 director and shareholder
- 1 nominee
- Specified share capital of 1 lakh
- The shareholder and Director can be merged into one person
- Company’s Legal Entity- One person company structure allows for optimum corporate status in the market pertinent to retain quality workforce into the system.
- Law Abiding- Once the sole proprietor desires to quit, the election of the next candidate takes place through official appointment as a nominee director.
- Easy to obtain Funds- The financial institutions are more inclined towards lending to a company instead of firms. In fact, most of the lenders advise proprietors to convert their business unit into a company before applying for the loan.
- High Flexibility- The sole owner in a one person company in India enjoys unlimited flexibility in operating the company through his/her point-of-view. This is one of the crucial aspects of the management and eases the legal procedures required during perpetual succession.
- Eliminate any third person- With the one person company in India design, the proprietor is hardly required to appoint a middleman to gain access to funds, timely credits, loans, and share. As a result, the mandatory division of profits also gets smoothened out. The company structure, no wonder, is favourable to independent entrepreneurs and artisans!
- Conversion into other Domains- The company has full liberty to transform into a private or public limited in case the need arises. However, the same should be done once the two-year’s stipulation is over.
All you need to know about one person company registration:
First came into existence in 1956, the concept of one person company of OPC strives to furnish better creative and profit outlet for the sole proprietor. The individual can do the same without getting entangled with the legal affairs and leveraging an amount of legal protection. Since the member will receive full permission to apply for loans and funds, the possibilities of expanding the venture remain pronounced. Additionally, the sole individual is not propelled to provide for financial statements since the Balance Sheet and Profit and Loss calculations are deemed sufficient. However, the submission of a yearly report is a perquisite with OPC signed by the assigned director.
In many ways, OPC has spearheaded growth in different sectors with strict law enforcement to thwart away illicit and fraudulent activities within the company’s premises. Since the online procedure is well coordinated, the shareholder never has to pay to any middleperson. Documents are dispatched within a couple of days to commence the operation of the company. The integration into OPC is open for both national and foreign investors.