As per the provisions of Companies Act, 2013, a new type of business entity called OPC was introduced. OPC stands for One Person Company. OPC Incorporation can be done by single person only. One of the biggest advantages of one person company incorporation is that now, a company can be formed with only one member. Similar to public and private limited companies, One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.
As per the provisions, the member of OPC must be an Indian Resident who has attained majority. Minimum one director and one promoter are required for the formation of OPC. Director and promoter can be the same person as well. A person cannot be a member of more than one OPC at one point time.
The member must nominate a nominee director in MOA and AOA who will take up the charge and become a member of the company in event of death or incapacity of a member. This mechanism provides an adequate safeguard to ensure the continued existence of the entity even in case of incapacitation of the single-member. The document must contain the written consent of the nominee, which must also be filed with the Registrar during incorporation along with the MOA and AOA.
The nominee is entitled to withdraw his/her consent, in which case the sole member is required to nominate another member as a legal heir within 15 days of receipt of the notice. The Company is required to file the notice of withdrawal of consent along with the intimation of the new nominee with the Registrar. the sole member of a 'One Person Company' is empowered to change the nominee of the Company for any reason whatsoever, by providing notice in writing to the Company. Further, the sole member of OPC is also empowered to change the nominee of the Company for any reason whatsoever, by providing notice in writing to the Company.
Along with the benefit of limited liability, OPC incorporation enjoys benefits in terms of lower compliance requirements like holding of AGM or EGM, preparation of cash flow statements, etc. Also, minimum authorized capital for one person company incorporation is one lakh rupees.
Documents required for OPC incorporation are:
1. Passport size photograph
2. Voter I'd / Aadhaar / Passport
3. PAN Card
4. Latest utility bills (electricity bill or water bill) of the place where business of OPC incorporated is to be conducted
5. Ownership documents (in case of owned premises)
6. Rent agreement and NOC from a landlord (in case of rented premises)
7. Digital Signature of promoter and witness
8.Director's Identification Number (DIN)
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For more information, please visit http://www.mca.gov.in/
For information regarding Public Company Incorporation, click https://allroundtaxsolutions.com/public-company-incorporation/