Since the latest amendment made in the Companies Act, 2013, a new concept was introduced i.e. One Person Company. This structure of a company allows you, a single individual, to establish and run a business wherein you will be the sole decision maker for the company. Like PLC, a One Person Company is also registered with the Registrar of Companies (RoC) at the Ministry of Corporate Affairs (MCA). As the name suggests, OPC requires only 1 person to be appointed as the Director. This person can be the Shareholder as well. However, a Nominee needs to be appointed to take the place of the Director in case of his death or if he is incapacitated to continue his duties. A One Person Company is the best suited for all those who are aspiring entrepreneurs who are looking for limited liability and minimum compliance requirements after incorporating the company.
Besides having total control of the functioning, an OPC reaps more benefits than you think. Let’s talk about a few them:
- Same as a Private Limited Company, an OPC also is a separate legal entity that functions differently from the individual running it.
- The incorporation process of a One Person Company is simpler as compared to any other company since only 1 person is required to be designated as the Director.
- An OPC can raise funds through many different sources such as financial institutions, angel investors and venture capitalists.
- Since an OPC is referred to as a small-scale industry, it gets a lower rate of interest on any loan taken from the banks. Also, it is easier to get this funding without paying a deposit, up to a certain limit.
- This type of company gives you the liberty to take risks when it comes to making creative decisions for the company considering you have limited liability to your personal assets. This opens the door to a lot more opportunities.
- Unlike in a Proprietorship, the salary of the Director is considered as a deduction when filing for taxes. Furthermore, a One Person Company can also file tax returns under the Presumptive Taxation Scheme.
Now that you know a few advantages of registering your own company, doesn’t it seem like the kind of company that can give you free rein to be your own boss? So, let’s discuss how you can incorporate one of your own company with the help of All India ITR.
- Considering there is only one Director that is you, we will, firstly, get your Digital Signature Certificate (DSC) and Director Identification Number (DIN)
- The next step will be reserving your company’s name with the MCA’s web portal, RUN (Reserve Unique Name).
- Before filing the forms for incorporation of your company, we will get a Permanent Account Number (PAN) and Tax Deducted and Collected Account Number (TAN) for you and your company as well.
- After acquiring all the necessary documents, we will provide you with a rough draft of the Memorandum of Association (MoA) and Articles of Association (AoA) for your company. You can add the clauses according to the rules and regulations you want to set for the smooth functioning of your company.
- The next step will be to e-file the SPICe form which will be filed along with all the necessary documents including AoA and MoA on the MCA web portal by our experts.
- After your application is verified by the RoC, a Certificate of Incorporation will be sent to us which we will provide you.
That wasn’t so difficult, was it? Know all about One Person Companies by referring to our guide and buy our budget-friendly plan to get your One Person Company incorporated now!