ONE PERSON COMPANY- BLESSING OR CURSE?
One Person Company- Introduction
A One person company is a unique form of Company, where it has the benefits of Sole Proprietorship and Company. It can be formed with one person as the Director and Member and another person as Nominee for the Member/Director.
OPC allows a single person to run a company with limited liability, in case of a sole proprietorship, even though it is run and owned by one individual there is no distinction between the owner and the business as in the case of OPC and the liability is unlimited.
Why Register OPC?
Time and again general public are more impressed by an incorporated company whose name ends with PVT LTD or LTD than a simple business name without any registration. Also, an unregistered business has more threats from the competitors as they may use your firm name with slight modification to confuse your customers. In order to avoid these chaos, you can go for an OPC registration which secures your company brand name.
Small and medium enterprises, doing business as sole proprietors, might easily enter into the corporate domain through this OPC registration.
OPC has perpetual succession; the nominee shall in the event of death of the member become a member of the company and will be responsible for the running of the company.
How to start a One Person Company?
An OPC is registered as a private limited company, OPC restrict to have more than one member and prohibits invitation to the public for subscription of the shares of the company.
1. Obtain Digital Signature Certificate [DSC] for the proposed Director.
2. Obtain Director Identification Number [DIN] for the proposed director.
3. Select suitable Company Name, and make an application to the Ministry of Corporate Office for availability of name.
4. Sign and file various documents including MOA & AOA with the Registrar of Companies electronically.
5. Receipt of Certificate of Registration/Incorporation from ROC.
To conclude it is very clear that One Person company is sure a blessings for the Sole Proprietors who now can enter into Corporate form of Business and can enjoy the benefits of a Private Company.