A COMBINATION OF PROPRIETORSHIP & COMPANY FORM OF BUSINESS
- Simplicity of a Partnership
- Advantages of a Private Limited Company
- Suitable if you want the autonomy of a proprietorship but also some advantages of a Private Limited Company.
ADVANTAGES
- An Individual Himself can start an OPC
- Limited Liability of Owner
- Ease of Continuity
- Greater Credibility
- Lower Compliance compared to a Private Limited Company
- Advantages of Corporate Structure
- Ease of obatining funds when compared to Sole Propreitorship.
CONSTRAINTS
- High tax Rate
- An OPC should be converted into a Private Limited Company if the turnover crosses Rs.2 Crores.
DOCUMENTS REQUIRED
FOR REGISTRATION
Identity proof for Shareholder - Director
Address proof for Shareholder - Director
Address proof for OPC address along with NOC from landlord.
One Person Company
What is Limited Liabilty:
Limited Liability is a good thing for the owners. It simply means that the owners (shareholders) will not be personally responsible for the loans & debts taken by the company and also for the activities of the company.
Is my OPC Different from Me?
YES. Your OPC is different from you. Your LLP can buy/sell properties in its own name, it can enter into contracts, it can hire employees, buy/sell products, pay taxes in its name etc.
What do I need to know about Capital?
Capital is the amount invested by the owners into the business.
What do I need to know about DSC?
More than half of business transcations during current times have become digitized. Forms, contracts, government applications & reports have also become digital. DSC is nothing but the digital signature of the individual which is used for signing digital forms, contracts & reports.
What is DIN?
It is Mandatory for the dircetors of an OPC to obtain a unique number from the Minstry of Corporate Affairs which is called DIN (Director's Identification Number).
Who is a Shareholder?
The owner of an OPC is called its shareholder. Such person holds the shares of the company. Shares are units of ownership interest in the company.
Who is a Director?
he person who runs a company's day to day operations is called the Director.
What are MOA & AOA?
MOA (Memorandum of Understanding) and AOA (Articles of Association) are the two most important documents which govern the working of an OPC. The MOA & AOA collectively set the rules & regulations within which the OPC shall operate. These documents are of very high importance and should be prepared only with the help of an expert.