Summary of One Person Company (OPC)
The concept of One Person Company (OPC) registration was introduced in India under the Companies Act of 2013. This allows a single individual to form a company, merging the advantages of a sole proprietorship with those of a traditional corporate structure. The implementation of the Companies Act in 2013 made this option available.
OPCs can be incorporated with just one member and one nominee, simplifying the incorporation process. However, there are limitations, such as restrictions on certain business activities and suitability primarily for small-scale enterprises due to the single-member requirement. The registration process involves obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), name reservation, preparation of Memorandum of Association (MOA) and Articles of Association (AOA), filing necessary forms with the Ministry of Corporate Affairs (MCA), and obtaining a Certificate of Incorporation.
Post-incorporation formalities include opening a bank account, registering for GST if applicable, maintaining statutory registers, issuing share certificates, appointing an auditor, filing annual returns, and complying with other regulations. Choosing a reliable partner like Filinglounge can streamline the registration process and ensure compliance with legal requirements. Overall, OPCs provide a viable option for solo entrepreneurs looking to establish a formal business entity with limited liability protection.
Eligibility Criteria
Before registering a one-person company (OPC), it’s essential to understand the specific eligibility criteria and limitations that govern its formation. The Companies Act outlines clear requirements to ensure that the individual promoting the OPC meets the necessary qualifications. enhancing