Starting A Business?
VLN & Associates have an expert team to help budding entrepreneurs to set-up their business in India, offering a variety of company registration like Private limited company registration, one person company (OPC) registration, Nidhi Company Registration, Section 8 Company (Non-profit organisations) Registration, Producer Company Registration and Indian Subsidiary registration.
We offer all kinds of company related services, from the start till the end. We at VLN & Associates guide young entrepreneurs with their start-ups, not just with the registration part, but also advising them to smartly procure, use and invest their funds. We also advice our clients about the different type of organisation available to start to suit their requirements.
One Person Company (OPC)
The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a 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.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company - who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation.
The average time we take to complete a one person company registration are about 10 - 15 working days, subject to government processing time and client document submission.
Single Promoter
One Person Company is the only type of corporate entity that can be started and operated by a single promoter with limited liability protection in India. A corporate form of legal entity in One Person Company ensures that the business has perpertual existence and easy ownership transferability.
Uninterrupted Existence
A company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
Easy Transferability
Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates are sufficient to transfer ownership of a company. In a one person company, the ownership can be transferred by altering the shareholding, directorship and nominee director information.
Borrowing Capacity
Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns. However, a one person company cannot issue different types of equity security, as it can only be owned by one person at all times.
Owning Property
A company being an artificial person, can acquire, own, enjoy and alienate property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., Further, the nominee director cannot claim any ownership of the company while serving as a nominee director.
DOCUMENTS REQUIRED FOR ONE PERSON COMPANY REGISTRATION
Identity and Address Proof
Identity and address proof will be required for the main Director and nominee director of the one person company to be incorporated. PAN is a mandatory identity proof. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
Identity Proof of Director & Nominee Director
- PAN for main Director and Nominee Director
- Both main and nominee directors must be Indian Nationals.
Proof for Registered Office in India
- Rental Agreement or Sale deed AND Copy of Electricity Bill, Property Tax Receipt.
- No Objection Letter from the landlord for use of Premises as the Registered Office.
Registered Office Proof
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Address Proof of Director & Nominee Director
- Passport, Driver’s License, Aadhaar AND Bank Statement or Electricity Bill.
- The last two documents must be valid, recent and less than 2 months old.
Signed Incorporation Documents
- Signed Digital Signature Application Documents in Hard Copy.
- Other Incorporation Documents Signed & Uploaded as Soft Copy.
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