A One-Person Company is a type of business with only one or a single owner, as its name suggests. Despite the possibility of multiple Directors. According to section 2(62) of the Companies Act of 2013, a “one-person company” is one in which there is only one member. As OPC Limited, a one-person company (OPC) can be established with share capital.
The general economy of India is being bolstered by one-person company registration. There is a growing number of entrepreneurs starting their businesses. The company is eligible for banking advances and credits as a result of the consolidation of OPC, and it can take advantage of the benefits in financial points.
This way, starting your own business doesn’t require you to worry about organization or slow cycles.
One type of business structure known as an OPC combines the advantages of sole ownership and an organization. It eliminates the difficulties of locating the appropriate co-accomplices for starting a business as an enlisted element.
The unorganized Proprietorship Business is being transformed into the organized form of a privately owned business by a Person Company. OPC is making it possible for new businesses and sole proprietorships.
What does the companies Act say?
The Companies Act of 2013 stipulates that the OPC may be drafted by any individual for any legitimate purpose. The “Person Company is an organization which has just a single individual as a part” definition is found in Section 2(62).
The One Person Company is converted into a privately held company. It is a company with a single chief executive officer and a single investor.
By taking on sole ownership through OPC registration in Chennai, a person can now take advantage of the benefit of less responsibility. The One-Person Company is an illustration of significant progress in our nation’s corporate sector.
Eligibility criteria for OPC registration
- The individual ought to be a resident and a citizen of India.
- The OPC does not accept companies or limited liability partnerships.
- For OPC registration in Chennai, a minor cannot be a member of the OPC, and there should be at least one shareholder or director.
- Within six months, an OPC should become a public or private company if its turnover exceeds Rs 2 crores.
Procedure for OPC registration
OPC registration in Chennai follows the procedure below.
Application of DPIN and DSC:
The director must request a digital signature and DPIN. If they already have them, the director can skip this step.
For OPC registration in Chennai, the director is required to propose three business-appropriate names for his company. One of the available options will be chosen by the MCA.
After the name is approved, the director must draft an article of association and memorandum of association, which must be filed by the MCA and signed by the director in front of a member.
Obtaining the certificate of incorporation:
The director receives the certificate of incorporation, which attests to the existence of the business, between 15 and 25 days later.
Taxation rules for OPC
- The company must submit an income tax return.
- TDS must be paid for the entire quarter if the company has employees.
- An ESI registration should be mandated by law for OPCs with more than ten employees.
- For OPC registration in Chennai for VAT and service tax returns, valid certificates are required.
- Holding annual general and board meetings.
- Director of the meeting.
OPC that has OPC registration in Chennai must have the following compliances.
- Each year, there ought to be at least two board meetings.
- A CA ought to conduct a statutory audit.
- ITR documents.
- OPC that has OPC registration in Chennai should appointment of an auditor. Submissions to the ROC (company registrar).
- Preserving minutes. AOC-4 for accounting records.
- MGT-7 returns annually.
Advantages of OPC registration
Having OPC registration in Chennai has the following advantages as below.
Distinct legal entity
The OPC that has OPC registration in Chennai has a separate legal entity, preventing the owner from being sued in the event of a legal dispute. Additionally, the owner’s assets will not be used to settle the business’s debts.
Making a decision is much simpler and quicker with OPC registration in Chennai because only one person is the sole owner of the business. Additionally, the owner can appoint directors to assist him without giving them any shares.
The compliance burden is less
An OPC that has OPC registration in Chennai will be required to confirm the procurements that are relevant to the registration of private limited companies, but it will also benefit from several exclusions, making compliance easier with the OPC.
Only a resolution could be communicated and recorded in the minutes (with a date and signature), and that date should be taken as the meeting’s date.
Funding is easy
All financial institutions would rather lend money to any company that has been registered than to proprietary businesses.
The company that has OPC registration in Chennai has advantages over all other forms of business due to its transparency and perpetual succession.
Better governance at the company registration makes all financial institutions feel more at ease.
The Brand image
When compared to operating a business as a sole proprietor, registering a company by having OPC registration in Chennai creates a brand image for the company.
Large corporations typically prefer to deal with corporations rather than sole proprietorships.
There might be a requirement for job work or a tender that only the company can apply for after having OPC registration in Chennai.
The Ministry of Corporate Affairs (MCA) has recently announced several circulars and amendments to the Companies Act and relevant Rules and Regulations to make doing business easier.
This was designed to assist businesses during the Covid stress by encouraging transparency, encouraging the adoption of improved governance and disclosure measures, redesigning compliance structures, and decriminalizing several provisions of the Companies Act and the LLP Act, 2008.
It also included making fast-track mergers available to startups, encouraging One Person Companies (OPCs) to have OPC registration in Chennai, and further promoting India as a place to invest and making doing business easy for both domestic and foreign investors by making modern, efficient processes possible.
It is anticipated that lakhs of businesses will benefit from the recent MCA amendment to the definition of a small company by reducing compliance requirements, filing fees, and penalties (in the event of any defaults).
The government’s efforts to make doing business in India easier will not only inspire the next generation of entrepreneurs and startups in India, but will also open the door for foreign direct investment.