With the introduction of the Companies Act, 2013 the concept of the One Person Company came into existence to motivate the small traders and entrepreneurs who has the potentiality to start their own business and build up their own identity. The biggest advantages of starting a One Person Company are that only one person is required to start the business. An entrepreneur can be the master of their own domain in case of One Person Company (OPC).
One Person Company was introduced in the J.J Report to create empowerment for the entrepreneurs where they can give a shape to their ideas. As there is a progress in the use of information technology and growth in the service sector in India, government has launched the concept of OPC.
Advantages of Becoming One Person Company:
- Limited Liability
The director’s personal property is forever safe in no matter the debts of the business. In OPC only investment in the company is lost, personal assets of the directors are saved.
- Continuous Existence
An OPC has a seperate legal identity, it would pass on the nominee director, therefore, it has continued existence.
- Greater Credibility:
An OPC requires to have its books audited yearly, it has credibility between vendors and lending institutions.
- Easy to Sell OPC:
OPC Company is simple to sell because of limited documentation work.
- Full Control Over the Company:
The fact helps in fast decision making and execution. Yet OPC can select as many as 15 directors for official functions, without providing any share to them.
- Easy to Raise Funds and Loans:
OPC is 1 of the easiest forms of corporate entities to operate. Very few ROC filing is to be registered with the Registrar of Companies.
Documents for One Person Company Registration:
- Passport Size Photograph
- Copy of PAN Card
- Copy of Electricity Bill
- Sale Deed (if owned)
- Copy of Aadhar Crad
- Address Proof (Bank Statement / Mobile / Telephone Bill)
- Copy of Rent Agreement (if rented)