Did you ever think about the single ownership of person over a company? Then, Let us take a look, This blog is going to teach you what is the impact of OPC in entrepreneurship.
“Passion, Creativity and resilience are the most crucial skills in business.”
If you have got those you are ready to embark on the journey.-said Jo Malone. This quote encourages entrepreneurship. What refers to the One person company? One Person Company registration in Coimbatore is to define that there is only one person as shareholder. If you have to start a business you may not have to search for the members to join with you. You can start a business by yourself and boast that you are an entrepreneur. The Government wishes to make each and every one as an owner for a concern. So it brought an Act called Companies Act 2013. OPC registration helps if anyone who wants to be the member can enrol themselves under this Act. If you invest on your own whatever profit you get, you can enjoy by yourself. You don’t have to share profit.
The One Person Company registration follows this procedure. Initially you have to apply for DSC. Then apply for DIN. Then you have to submit Name approval Application and the required documents. Afterward you have to file the forms with MCA. Then certificate of Incorporation is issued. The OPC registration in Coimbatore assists you in this process.
Impacts of DSC in OPC
The One Person Company registration needs the following documents to get it registered. Now One Person Company registration explains what is DSC.DSC is Digital Signature Certificate. The person does not need to sign the documents physically since it will take time. To reduce the time delay, DSC is accepted. Electronically submitted forms can have this DSC. Then DIN is necessary. Director Identification Number is a unique number provided for the Director. In OPC there is only one Director so it must be obtained. Name selection is important for a company. So name approval is important.
One Person Company registration says what are the documents needed .PAN card copies of the owner. Copy of Aadhar or voter ID of the owner. Copy of property papers. Address proof and photo of the Owner.
Are there any differences between One Person Company and Private limited?
Yes there is difference in terms of liability. OPC registration suggests in One Person Company the single Director is not liable. But in Private ltd., the company is liable. Since there is one person as Director he can enjoy the profit. Funds can be raised easily. Also bank loans can be availed easily. Registration is also easy.
One Person company registration suggests when a One Person Company can be converted to Private limited company. If the profit crosses two crores, also the if capital exceeds 50 Lakh then he cannot continue as One Person Company and must be converted to Private limited. And also the so called NRI (Non Resident Indian) cannot start OPC because the Companies Act 2013 does not allow it.
The One Person Company should have corporate secretary, treasurer and other officers appointed within fifteen days of date of incorporation. It should have prefix as One Person Company.
Are there any differences between One Person Company and Limited Liability Partnership?
OPC registration in Coimbatore statesOne Person Company should be fined up to one lakh for noncompliance. But for LLP it is up to five lakh for noncompliance. And also compliance cost is more in OPC but compliance cost is less in LLP. After two years of incorporation OPC can be converted to Private limited. But an LLP cannot be converted into Private limited.
Let us see what all the differences between One Person Company and Sole proprietorship are
One Person Company registration states for a sole proprietorship registration is not mandatory whereas in OPC registration is mandatory. Also sole proprietorship business comes to an end after death of the owner. But in OPC perpetual succession. So it is important that a nominee appointment is mandatory in OPC.
Who is a Nominee?
A person as an Indian citizen can become nominee if he is nominated by the Director of an OPC. And also to be noted that the nominee should have consent. There is no separate legal identity for sole proprietorship.
Do you know what is AGM?
AGM is annual General Meeting. But OPC registration in Coimbatore says there is no need of AGM. Because there is only one Director in the Board.
One Person Company registration states differences between One Person Company and public limited.
In One Person Company only one director has control over the entire company. But in public company the directors don’t have complete control over the company. Foreign ownership is not allowed in One Person Company. But in public limited company foreign ownership is allowed. In One Person Company restrictions are there to issue the shares publicly. But in public company share be issued publicly.
Advantages of OPC
One Person company is a boon for many of the entrepreneur because they don’t have to look for another person to join. If you are a chef you may start a restaurant. You don’t have to run behind a person for financial support. Government helps. And also OPC registration assists you in registering process. Even if you have to produce a chocolate at home; yes in today’s world it is possible.
Economic independence and Economic growth are important in a nation .That is why Small scale industries, Micro Small and Micro Enterprise and One Person Companyare encouraged. Initiating One Person Company is not an easy job. You have to go through profit, loss and you should make yourself very strong in this process. Hence One Person Company should have good foresight and must be wise in making decisions because One Person Company definitely makes an aspiring person to be an owner. Also only an Indian citizen can hold the ownership. Hence it helps in ‘Make in India’ movement. OPC registration in Coimbatore greatly assists you in achieving your goal.