One Person Company means a company which has only one member’
The concept of One Person Company in India was introduced through the Companies Act, 2013 to sustain entrepreneurs who on their own are able of starting a venture by allowing them to create a single person entity. One of the principal advantages of a One Person Company (OPC) is that there can be only one associate in a OPC and, a One Person Company is a separate legal entity from its promoter or Owners, offering limited liability shelter to its sole shareholder, while having continuity of business and being easy to incorporate.
One Person Company (OPC): Process of Registration
Step 1: Apply for DSC
Step 2: Apply for DIN
Step 3: Name Approval Application
Step 4: Documents Required
Step 5: Filing Forms with MCA
Step 6: Issue of certificate of Incorporation
ADVANTAGES & BENEFITS
Why to Register One Person Company
One Person Company is the only kind of corporate entity that can be started by a single promoter with limited liability protection in India. A corporate form of legal entity in OPC ensures that the business has continuous existence and easy ownership transferability.
A company has continuous succession’, meaning uninterrupted existence until it is lawfully 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.
Ownership of a company can be easily transferred in a business by transferring shares. The signing, filing and transfer of share transfer form and share certificates are adequate to transfer ownership of a company. In a one person company, the possession can be transferred by altering the shareholding, directorship and nominee director information.
Banks and Financial Institutions favour 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.
A company being an artificial person, can acquire, own, enjoy and estrange property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., supplementary; the nominee director cannot maintain any ownership of the company while serving as a nominee director.
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