OPC Incorporation under Companies Act

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What are the Benefits of OPC Incorporation

• The predominant benefit of OPC incorporation is that only one person is required to incorporate OPC. So OPC is the registered form of sole proprietorship firm.
• Lesser Compliances Burden as compare to Private Limited or LLP
• In OPC the decisions can be taken rapidly as there is only single owner and that person will take all the decisions.
• OPC registration is beneficial for the small entrepreneurs who are looking forward for the registering their startup business and also have requirements of funds. The banks lend funds to the registered entities rather than unregistered firms.
• Member and company both are different entities, so demise of member won’t affect the life of the company. The company will run uninterruptedly.

Key Points to be kept in mind before incorporation of one person company registration

• A natural person (i.e. individual) who is an Indian citizen as well as resident in India can incorporate OPC. This is for both member and nominee.
• A natural person can be member of maximum one OPC and can be nominee of maximum one OPC.
• A minor person is not eligible to become director or nominee in the OPC.
• No beneficial interest can be given to the minor person.
• OPC cannot be incorporated and converted into nonprofit organization.
• OPC is restricted to carry on the business of Non-banking financial investment activities, activities related with investments in shares, securities of other companies.

Information / Documents

Frequently Asked Questions

Q1. Is it allowed to change registered office of the company after registration?

Answer:- Yes, A company can change its registered office anytime after following a specified procedure. The changed address can be situated within the same state or in a different state from the state in which it was originally registered.

Q2. For small businesses, what are the benefits of an OPC Registration?

Answer:- It provides credibility to business in financial institutions, suppliers, and potential clients. As it makes it easier for companies to get loans at favorable terms from banks or convincing potential clients while entering into deals as companies are trusted more than other forms of business.

Q3. What address to be given as registered office of the company?

Answer:- A registered office is required to hold Annual general meetings, for keeping records and receiving correspondence from all the statutory/government authorities. The registered office does not have to be necessarily owned by the company, it can be on rented premises also. The registered office of the company determines its jurisdiction for registration, for instance, a company with a registered office in Delhi will come under the jurisdiction of Registrar of Companies, Delhi.

Q4. Is One Person Company structure suitable for my business?

Answer:- The OPC is typically for small businesses that have turnover limited to Rs. 2 crores only, the promoter may discuss with us the feasibility of this form in the real-life situation of a company.

Q5. What are the responsibilities of a director?

Answer:- The director has been entrusted with the responsibility of managing the company in the best efficient manner. The responsibility of a director depends upon the kind of directorship he holds in the company. For instance, an executive director or a managing director has a greater responsibility than a non-executive director who might hold the directorship as an expert or consultant. A director is liable for misconduct or fraud or if found guilty of default.