Considering the FY 2019, there was a good record of the number of registered ‘One Person Company’ across India marked in the statistics – history of analytic books.
The state which has the most registered OPC is Maharashtra, with 1,150 new OPCs. Karnataka by new 774 OPCs, Delhi by 719 and others are followed.
Look at the below statistics that showed number of registered OPCs in India FY 2019, by state and union territory
Source: Statista.com
The researchers believe that these numbers will rise and grow in FY 2020, naturally, bringing the opportunity in company registration and increasing the nation’s economy.
Here in this blog, we will discuss OPC and its salient features and top advantages.
To know about them, keep reading this blog…!
Read More: Pvt Ltd vs Proprietorship Firm: Which one is Best for Startups?
What is One Person Company?
The Company Act, 2013 a regulatory body of law script introduced a revolutionary concept for one person.
As per the Section 2(62) of the Companies Act, 2013 define One Person Company as any company with just one member.
The section also stated it’s codes of conduct, rights and duties. One is that an OPC will be considered a Private Company when it comes to legal matters.
Moreover, the member is the director of its corporation and subscribers to its memorandum of association, or its shareholders.
This type of entity is created when there is only one founder/promoter for the business. In most cases, entrepreneurs who fall in the early stages prefer to create OPCs over sole proprietorship business because of the ocean of advantages that OPCs offer.
Salient Features of One Person Company in India
As it’s stated section mentioned the features of OPCs clearly, picking out from that, presenting some general features of a one person company.
- Private Company: Section 3(1)(c) of the Companies Act discusses OPCs as private companies. A single person can form a company for any lawful purpose and hence, further treated as private companies.
- Single-Member: OPCs can have only one member or shareholder, unlike other private companies.
- Nominee: Taking you to the nomination registration, OPCs get a unique feature that makes it different from other kinds of companies is that the sole member of the company has to mention a nominee while registering the company.
- No Perpetual Succession: While you have power to appoint a nominee, therefore, in case of death will result in the nominee choosing or rejecting to become its sole member.
- Minimum One Director: While OPC refers to one person company and therefore, he/she is the director. So, there can be one director as minimum and upto 15 directors as maximum.
- No Minimum Paid-up Share Capital: OPC is free in case of accumulating and formation of any capital. Companies Act, 2013 has not prescribed any amount as minimum paid-up capital for OPCs.
Learn More: Essential Document Required For One Person Company Registration
Advantages of Forming One Person Company
While OPC delivers intuitive benefits to the director, here are some major pros of OPCs mentioned that answer why OPC is beneficial for early-age business.
- In OPC the liability is treated in a different way. The shareholder liability is limited to the payment of subscription money. Hence, the member’s personal assets are not at risk.
- OPC organization has a different lawful character, it would give to the chosen one executive and, in this manner, keep on existing.
- Unlike following heavy constitutional rules and compliances, here in OPCs lower compliance is required.
Conclusion
Well, the scope of One Person Company Registration in Jaipur is extensive and fruitful for businesses. A person can easily kick-up their ideas related to running and expanding business with OPC. While learning it’s features and benefits, one can easily think of OPC registration over other entities.
In the end, one person company is beneficial in many prospects…! Thanks for reading this blog.