OPC Registration Bangalore

One Person Company (OPC) registration is a forward thinking concept that encourages the merger of people with micro businesses and entrepreneurial dreams, but does not have the time, resources or ways to get more partners to implement the business plan.

Similarly, It is consider a combo of a unique proprietary business model and a common company legal entity business model where OPC gets the best of both worlds. Under the Companies Act 2013 and its provisions you can register an individual company where it is possible for a single person company to act as a company without the complexity of having partners. Encourages more people to come forward to start a business.

In a one person company a person has a limited liability for the shares he / she owns in the merge company, in which case there is only one shareholder when managing a given company.

The main reason for choosing One Person Company (OPC) registration is that the giver has a business idea that needs to be represented in a corporate format and the idea is that a single person will have limited resources at their disposal. OPC has more than one company.

Difference between OPC and Sole Proprietorship

OPC Registration states the following.

 In sole proprietorship, company registration is not mandatory. An employer can register if he wants to register his company.

In a one-person company, the company can be register under the MCA and Companies Act 2013.

The legal status of an organization

 Sole proprietorship is not consider a separate legal entity

One Person Company is a specialized legal entity.

Responsibility of members

An employer has unlimited responsibility.

 In a one-person company, the liability is limit to the share capital.

Minimum number of members

In sole proprietorship, there is only one owner.

 In a one person company, at least 1 person is require

Maximum number of members

A maximum of 1 person is allow in the sole proprietorship

A maximum of 2 people are allow in a one person company.

Foreign sole proprietorship

Foreign sole proprietorship, not allowed in sole proprietorship.

In a one-person company, foreign sole proprietorship is allow if one is a director and the other is a nominee. Both the director and the nominee must not be foreign nationals

Transfer

Transfer capacity in sole proprietorship is not allow

In a one person company, transfer capacity is only allow for 1 person.

Survival

The employer’s right ends on the death or retirement of the member

In a one-person company, the presence is independent of the directors or nominee

Tax

Sole proprietorship business is tax as an individual

One person company tax rate with 30% profit plus cess and surcharge

Annual filing

Income tax return with the sole proprietorship company registrar.

Filed with a One Person Company Registrar.

Guidelines for managing a one person company registration

1. Only a natural resident of India is eligible to serve as an OPC member and nominee.
2. Only one member and one nominee are eligible for OPC. The nominee cannot be immerse with any other organization.
3. The capital paid to OPC is at least Rs 1 and the average annual turnover is Rs. The status of OPC was 2 crores in the 3 financial years preceding the death.

Advantages of Opc registration

1) Easy to access: OPC registration is easy because there is little documentation regarding the number. It has only one member and one nominee as it has directors and a small number of forms.

2) Structure and Existence: An OPC is a long-term contract that does not cease after the death of its member, but is maintain by its nominee.

3) Financial Assistance: Banking and financial institutions prefer to lend to a company rather than owned companies.

4) EASY PASS: After completing two years of existence, OPC can voluntarily transform itself into a private or public company, limited by the terms and conditions prescribed by the Companies Act 2013 through One Person Company registration.

5) Limited Liability: The shareholder liability in OPC is limit to his share, which means that any loss or debt in the business does not affect the personal pocket of the owner, so there is no personal liability against the company.

How is a one person company different from other private limited companies?

In addition to having various similarities, there are some differences between the two companies in the formation of the organization, as a single member consisting of both the shareholder and the core director of the company can form the OPC, although at least two directors are a private limited company.

1) Ownership: OPC’s ownership is limit to individuals and not to companies, a private company can limit the number. It helps to have two hundred of its members, so the responsibility is limit to one person. On the other hand, in ownership, the owner alone is responsible for the claims made against the business

2) Inheritance: An OPC is a merge entity with a permanent legacy, which makes it easier for entrepreneurs to raise capital for the business. The nominee can take over the business in the event of the employer’s death. In the case of private companies, the takeover can only take place through the execution of a will, which may or may not be challenged in court.

3) Taxation: Compared to PLC, OPC registration has a lot of expectations that it can make a valid bond with its shareholders or directors and get paid, but like other private companies, OPC can be kept in the tax bracket. Unlike the owner, the company is tax liable and a single member is independent.

4) Meetings: The annual general meeting for one person is require to be held in each half of a calendar year, but in a private limited company there are more procedural require of 4 board meetings taking place every quarter and with a require not to exceed 120 days between each board meeting.

Conclusion

One person Company registration states that the concept of a one-person company is a relief to many entrepreneurs because it helps small businesses grow, thereby helping the entire economy of the country. For those who are unwilling to share their powers or duties, such companies receive various credit and credit facilities, easy banking operations and reduced taxes. And in the long run, these small companies can transform themselves into large private or public companies.