One person company and its benefits
The structure of the one person company (OPC) in recent times was launched as a refinement of the structure of a sole proprietorship firm. In an OPC, a single promoter gains full authority over the company thereby, restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of carrying on). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC has an average turnover of ₹2 crores thrice in a row and over or acquires a paid-up fund of ₹50 lakh and over, it has to be converted to a private limited company or public limited company within six months.
Benefits of OPC Registration
The directors' personal property is always safe in a private limited company, no matter the debts of the business.
Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.
Documents Required for OPC Registration
- PAN card or passport
- Passport, for NRIs and foreign nationals
- Scanned transcript of driver's license or voter’s ID
- Updated gas or electricity invoice/bank account statement/mobile or landline phone invoice
- Specimen signature or impression
- Passport-size photo.
Documents Necessary for the Registered Office
- Scanned transcript of current bank account statement/phone or mobile invoice/gas or electricity invoice
- Scanned transcript of rental agreement written in the English language
- Scanned transcript of a no-objection certificate from the concerned property landowner
- Scanned transcript of property or sale deed printed in English (if the property is owned).
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