One person company was introduced by the Companies Act, 2013. OPC supports the entrepreneurs who wish to start a business by their own. It gives the full control to the entrepreneur and that person will be the only shareholder and director. Though OPC allows a single entrepreneur it also has some limitations. Such as, every OPC should nominate a nominee. If the director of the OPC is disable, the nominee will become the director. OPC should be converted in to a private limited company if the annual turnover crosses the limit of Rs.2 crores. Your bank account should be with the minimum balance when you start OPC. No other capital is needed to start OPC.Documents required
The above mentioned documents should be submitted by the director. The self-attested copy of the first three documents should also submitted by the director. The foreign nationals should provide notarized documents.
Scanned copy of the latest bank statement, No-objection certificate from the landlord, notarized rental agreement and property deed in English should be submitted as a document for the registered office. In OPC the registered office can also be the person’s residence. A commercial space is not mandatory in OPC.
OPC can easily raise fund through investors, financial institutions, etc. It is also much easier to get loans from banks when it is registered as a one person private limited company.Separate legal entity
OPC is a separate legal entity in which the entrepreneur is able to do anything they wish to do.Single owner
As there is a single owner in OPC, it’s easy to make decisions very quickly. They can control and manage the business by themselves without any confusions or distractions.
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