Benefits of a One Person Company (OPC)
1. Limited Liability
2. Separate Legal Entity
3. Ease of Formation
4. No Minimum Capital Requirement
5. Perpetual Succession
Requirements for Establishing a One Person Company (OPC)
1. Sole Member: An OPC can have only one member who must be an Indian resident and citizen.
2. Directorship: The sole member of the OPC is also the director of the company. However, the OPC may appoint a nominee director who will take over in case of the member's incapacitation.
3. Name of the Company: The name of the OPC must end with "One Person Company" to distinguish it from other types of companies.
4. Capital: As mentioned earlier, there is no minimum capital requirement for starting an OPC.
5. Annual Compliance: OPCs are required to comply with statutory obligations, including filing annual financial statements and income tax returns.
6. Conversion: If the paid-up capital or average annual turnover of the OPC exceeds prescribed limits, it must convert into a private limited company.
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