ONE PERSON COMPANY IN DELHI
One Person Company
Whenever someone thinks of starting a new business, at that time, they got highly confused about what type of firm they should start. As you must be knowing that there are several firm types, but some of the most difficult ones, where every new business starter must have been confused, are Partnership Firm and One Person company.
Although both the One Person Company and Partnership firm have their benefits and of course some bad things too. But in this article, we are going to discuss only One Person Company, in which we will discuss what a one-person company is, it's types, formation, registration process, and everything related to OPC.
What is One Person Company?
As you must have got it by its name that One Person Company is a company which just has one member only. This means that one person would have to do all the works that are present, and no one would be there to help him. You must be thinking that one person company must be like, there should be only one boss, and others should be working under him, but it's not the truth.
As when you have successfully registered a one-person company, in that case, you would not be able to add another person or worker to work under you and to take advantage of your Company.
Here is an unknown fact about One Person Company, and that is a person cannot create more than five one-person companies. Let us now have a look at some features of OPC-
- If you want to start a one-person company, then you would have two different options under which you can start the Company, and those are Company limited by guarantee and Company limited by shares.
- The second to be noted which starting an OPC under Company limited by shares type, your Company should have minimum paid up capital of INR 1 Lac. Moreover, with that, the Company should also be having the feature to transfer its shares quickly, and no one should be allowed to work other than the owner, as it's a one-person company.
- The third important thing to know about OPC is that with the help of successful OPC registration, the person would be able to provide services to all over the world. Moreover, after the registration, the person should mention One Person Company below the name of the Company, to let people know what type of Company it is.
- As you know that OPC has only one person, so in that case, if the owner dies, then who will take over the charge of that Company. For solving this issue, a nominee is created, so if the owner dies, then that nominee would be able to take charge of that Company. Moreover, if you think that you can't change the name of nominee after once it is selected, then you are wrong, as you can easily change the name of nominee anytime. After the death of the owner, all the shares of that Company would be transferred to the nominee automatically.
Benefits of One Person Company-
Let us now have a look at some of the benefits of One Person Company-
- The first and most crucial benefit of OPC is that you will have everything your own, and hence, there would be no differences or partnerships, as you must have seen in other types of companies. In this type of business, you could say that you are an independent company, which is entirely based on you and your work.
- The next benefit of a One Person Company is that you would be able to limit the overall working of your Company on your own. This means if you can handle more work, then you can increase the limit of work of your Company, while if you are feeling some chaos in handling more work, then also you can decrease the amount of work. Everything is entirely in your hand, while you must have noticed that in other types of companies everything and work limit is in the hands of one single boss, and the other workers have to obey his orders.
- The most significant benefit of OPC would be that you would have your own property, and there would be no distributions in the property. When you are working on an OPC at that time if you are the owner then you have the rights of everything related to that business.
- Another benefit of OPC is that you would be able to quickly transfer the shares of your Company so any other person you want to. Moreover, you must be knowing that when you are registering a one-person company at that time, you have to give a name for the nominee. Which would be able to be the owner of your OPC after your death, and hence, all the shares would be easily transferred to that nominee.
- The last and a type of benefit because of which most numbers of people start an OPC is because, with an OPC, you would have complete control over your Company, no one would be there to interfere you, and hence, your decision would be the final decision.
One Person Company Registration-
We have discussed everything about One Person Company above; now, it's time to have a look at the process of One Person Company registration. Here is the list of required steps for OPC registration-
- The first step is to apply for DSC; it is known as the Digital Signature Certificate. You would have to provide your documents such as address proof, adhaar card, PAN card, and phone number.
- The next step is to apply for DIN(Director Identification Number).
- The next step is to fill the name approval application.
- Next, you would have to fill all the forms with MCA.
- The last step is to collect the certificate after you have successfully register OPC.
This is the complete processing of One Person Company registration, although the overall process is simple and straightforward, but the thing to take care of is to bring all your required documents with you for proper identification.