OPC: Things you need to know
There are different formats and kinds of companies in the present day business world. Which type of company you are seeking to invest in? Of course, if you are planning to start a business, you should look into the options and the advantages every option gets you.
Talking about one Person Company, it is all over the trend. You can even get one person company registration online done with ease. You have to talk to the professionals and they would guide you in the registration and the entire procedure. To be more precise, the Companies Act, 2013 fully revolutionized corporate laws in India and it introduced various new concepts that did not exist before. On such game-changer was the overview of One Person Company concept. The concept led to the recognition of a fully new way of starting businesses that rendered flexibility that a company form of entity can cater, while also catering the protection of restricted liability that sole proprietorship or partnerships is short of.
What really a one person company is?
A one person company has been taken as a company that has just one person as its member. Moreover, members of a company are nothing but they are subscribers to its memo of association, or its stockholders. So, a one person company is effectively and efficiently a company that has just one shareholder as its member.
These types of companies are usually created when there is just one founder/promoter for the entire business. Entrepreneurs whose work and businesses lie in initial stages prefer to go for OPCs instead of sole proprietorship business because of the various advantages that OPCs cater.
What is the difference between one Person Company and Sole Proprietorships?
A sole proprietorship type of business might seem similar to one person companies simply because they both involve a single person owning the entire business, but there actually are some variations between them.
The chief difference between the two is their nature. The nature of liabilities these both carry is different. Since a one person company is a separate legal entity differentiated from its promoter, it has its own possessions and liabilities. The promoter is not at all personally accountable to repay the debts of the company. On the other side, sole proprietorships and their owners are the same persons. So, the law permits attachment and sale of promoter’s own assets in the times of non-fulfilment of the liabilities of the business.
The formation of OPC
A single person can create an OPC by subscribing his name to the memo of association and fulfilling other needs prescribed by the Companies Act, 2013. It is the memorandum that must state specifications of a nominee who will become the company’s sole member in case the default or original member dies or becomes unable of getting into contractual relations.
So, check out one person company registration fees and get started with your new venture. It would get you wonderful results! You just have to know what you are doing and pick the best choices and your business would prosper for sure!