The One Person Company (OPC) in recent times was launched as a good refinement over the sole proprietorship as per Companies Act 2013. In 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. One Person Company (OPC) can be formed with only 1 owner, who acts as both the director as well as a shareholder of the company.
Section 2(62) of Companies Act defines a one-person company as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.
► The same person enjoys full authority over the company’s matters.
► The major advantage of a One Person Company is a single person can form an (OPC) Private Limited Company in India and it is called a separate legal entity.
► Lesser annual compliances.
► Upon the death of a member, it doesn’t mean that OPC is closed. Even the nominee gets inherited his assets/liabilities upon him in place of the member.
► One-person companies can also accept funds or investments from anywhere.
► The limit of the paid-up capital and the turnover presently applied for OPCs (paid-up share capital for Rs 50,00,000 and an average turnover, while the respective period of, 2 crore rupees) is being removed therefore it is no restrictions on the high scaling of OPCs in terms of their paid-up capital & turnover.
► PAN & Aadhar card of the Promoters/Directors & Nominee.
► Address Proof – Bank Statement/Electricity Bill/Telephone Bill of the Promoters/Directors & Nominee.
► Photo Identity Proof – Voter ID/Driving License/Passport of the Promoters/Directors & Nominee.
► Passport of Foreign Nationals & NRIs
► Passport-sized photo of Directors & Nominee.
► Latest utility bill such as gas, electricity, mobile, telephone, Internet clearly depicting the address of the proposed premises.
► NOC From the owner of the property in case property is owned by 3rd party or copy of rent agreement in case of rented property.