All about One Person Company Registration

One Person Company Registration:

As per section 2(62) of the Companies Act, 2013 it defines ‘“one-person company” means a company which has only one person as a member’.

For the getting a One Person Company Registration the following requirements must be met-

· Only a natural person who have Indian citizenship and whose place of residence is India (a person who has stayed in India for a time period of 182 days and above in one calendar year immediately preceding the previous years),­­ shall be eligible to incorporate a One Person Company.

· Also, that person must be a nominee for the sole member in the One Person Company Registration.

Also Read: Different Types of Company Registration in India

Source: Ezybizindia.in

Benefits of One Person Company Registration:

Having a One Person Company Registration can be really beneficial in the long run. These advantages and benefits are as follows-

· Separate Legal entity: OPC is considered as a Separate Legal entity. This means it is a distinct person or individual having legal rights of its own separate from the founder or owner of the business.

· Management is separated from Ownership: The management is separated from ownership which means that the directors are the managers of the business and its day to day activities. And the shareholders who are the actual owners takes the advantages and benefits of the investment made by them in the business.

· Receives more credibility: Having One Person Company Registration with the Central Government provides it with more credibility with potential customers, employees, vendors and lenders or creditors which will be really helpful for the efficient operations of the business.

· Helps in expansion: It helps the business owner to expand the business.

· Liability is protected: It also, provides the business with a protected Liability. This means that the owner is only liable and responsible for the amount of money that they have invested in the business, their personal assets cannot be used for repayment of debts taken on the company’s name.

· Nomination Provision for Continuity of Business life: A unique but beneficiary provision has been provided specifically for the One Person Company Registration that provides assurance for the continuity of the life of the Company.

Criteria for One Person Company Registration:

The criterion for incorporating a One Person Company Registration are as follows-

· It must be a proprietary business.

· The company must have one Director who is also the manager and the shareholder (both) in the company.

· The sole person must have the required funds that are enough to start the business and to operate it.

· No investors are required to start the business or One Person Company Registration.

· A one-person company can have one Nominee who will take care of the whole business in case where the director person is incapable to continue to operate due to physical or mental incapability, physical sickness or incapacity, death or any other such reason.

· does not need any Investor to start this business

Exemptions for One Person Company Registration:

The Government of India has always promoted entrepreneurship in the company and has taken some very useful steps in this regard. It has brought new schemes that have been really beneficial for the growth and development of the entrepreneurs. These schemes have added to the advantages provided to the owners of a One Person Company Registration. Also, the requirement needed during **ROC Compliance in the case of OPC** have become much lesser than other types of company registration.

An OPC is being provided with so many exemptions. These are-

· An OPC doesn’t require to hold an Annual General Meeting (AGM).

· As part of the financial statement it not mandatory for them to prepare a cash flow statement.

In case the One Person Company Registration have no appointed company secretary, then the annual return of the company can be signed by its director as well.