The Companies Act 2013 gave birth to the concept of one Person Company. Section 2 (62) of the Companies Act defines a “one person company” as “a company run by a single person, acting as shareholder and director at the same time.” Compliance with One person company registration in Chennai is less as compare to private company limited.
Entrepreneurs in the early stages of their business prefer to create an OPC rather than a sole proprietorship because of the benefits offered by the OPC.
OPC registration in Chennai
One Person Company (OPC) registration is a forward thinking concept that promotes the inclusion of micro businesses and entrepreneurial aspirants but has no time, resources or resources to get more partners to implement the business plan.
It can be consider a combination of the sole proprietorship business model and the general company legal entity business model, where the OPC Company in Chennai will enjoy the better of the two worlds. You can register a one-person company under the provisions of the Companies Act 2013 and its rules, where it became possible for a single-person company to operate as a company without the complication of partners. Such people are encourage to come forward to start more business.
In a one person company the person has limited liability for the shares held in the company when he / she was involve in it while in this case there is only one shareholder while conducting the given incorporation.
The primary reason for choosing a one person company (OPC) registration is that a given person has a business idea that needs to be present in a corporate format and that idea can only be done by that person with limited resources. An OPC company can have more than one director, but shareholders cannot have more than one, and no one will be allowed to join a company of more than 1 person.
Through the inclusion of OPC, a company can only enjoy banking point-in-benefits through similarly limited private companies, one-person companies are eligible for banking loans, credit and enjoy the benefits of a limited liability company.
we offer you one person company registration online process without any hassle which will be done by our professionals within a period of 10 days and it is subject to government processing time. Our team takes care of the documents required for OPC registration in Chennai and provides you with an actual estimate of one person company registration costs.
Benefits of one person company registration
Most business employees prefer to register a private limited company because of its distinctive advantages but they do not know that one person company registration can offer them good opportunities with very little compliance.
Money in convenience
Like any private limited company, OPC can raise its funds through financial institutions, angel investors, venture capital, etc. OPC may also graduate to a private limited company to raise its funds.
OPC registration in Chennai has better opportunities and benefits from limited liability, according to which the company will be limit to the value of the shares you hold in it. One person company registration gives you more opportunities to take risks and find better opportunities without any pressure to lose personal assets. Therefore, it is an incentive option for young, new and innovative entrepreneurs.
Connection with minimum requirements
No one can beat OPC when it comes to starting a company with minimum requirements. You can start OPC by fulfilling the following requirements. In this case, the shareholder and the director can be the same person and he must be a citizen of India. Due to less compliance and load, the individual has more time to focus on his company and functional areas.
Benefits for small scale businesses
OPC Small businesses can get all the benefits provide such as easy funds without depositing security within certain limits, low interest rate loans, benefits under foreign trade policy, etc. These benefits will play a crucial role in the company’s progress its early days.
Recognition as a trusted separate legal entity
Any business that is register under the Companies Act, 201 and has a separate legal entity and is consider more reliable than unregistered
New updates of OPC:
Under the previous Companies Act, 1956, a private limited company must have at least 2 shareholders and 2 directors. The Iranian committee set up by the Ministry of Corporate Affairs to advise the government on the new company law recognized the need to provide a simple type of entity for entrepreneurs, which would not need to be formed with an association of individuals. . With this background, the concept of a one person company was introduce under the Companies Act, 2013, as opposed to a private limited company, which requires at least 2 members and 2 directors, to include an OPC as a limited company and only one member a director.
However, the OPC would have to compulsorily increase the number of shareholders and directors to at least two and hence it would be necessary to convert it into a private company. 50 lakh or Rs. 2 crore respectively
Eliminate the mandatory conversion requirement:
The government felt that this requirement of mandatory conversion had banned start-ups and innovations and therefore defeated the purpose of the OPC. Therefore, to promote the inclusion of OPC, the government, in its Union Budget 2021, decided to remove this requirement of mandatory conversion of OPC.
(B) NRIs are allow for private OPCs:
Only Indian nationals residing in India were allow to join the OPC. However, the government had announce in its Union Budget 2021 that non-resident Indians (NRIs) would also be allow to join the OPC.
(C) Exemption from a minimum of 182 days to a minimum of 120 days in India for the purpose of OPC.
All the above amendments will come into effect from 1st April 2021.