A OPC is a type of Private Limited Company where minimum and maximum number of members is one. The One Person Company (OPC) was recently introduced as a strong improvement over the sole proprietorship OPC has limited liability of its members unlike in a partnership firm. It gives a single promoter full control over the company while limiting his/her liability to contributions to the business. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). The OPC is one of the most credible structure and preferred over a Proprietorship.
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited.
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
In the company form of organization it is possible for a company to make a valid and effective contract with any of tis members. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.
Digital Signature Certificate ( DSC is required for e-filling with MCA. A DSC application need to be filed along with ID and address proof duly attested by bank manager, gadzeted officer or post master. )
Its a unique number which is alloted to the Director of a company by the Ministry of Corporate Affairs (MCA).
A minimum of one and maximum of six proposed name can be submitted to the MCA for name approval. Name approval will be obtained within 1 working days.
MOA and AOA are drafted in line with the provision of Companies Act 2013. MOA is a legal documentation which defines activity of the company. AOA is the rule book of company operations.
After submitting the documentation the Ministry of Corporate Affairs will issue a certificate of incorporation.
Once the Ministry of Corporate Affairs issue the company incorporation certificate, we will apply for the TAN & PAN.
|BASIS OF||PRIVATE LIMITED||LLP||OPC|
|Recommended For||Start-ups and growing companies||Professional services firms||Sole promoters|
|Governing Act||Indian Companies Act, 2013||Limited Liability Partnership Act, 2008||Indian Companies Act, 2013|
|Maximum Directors||There can be maximum of 200 in case of a private company.||No Limit||One|
|Liability||Limited by Shares||Limited by Shares||Limited by Shares|
|Issue of prospectus||No||No||No|
|Minimum Capital||Atleast Rs. 10,000||Atleast Rs. 10,000||Atleast Rs. 10,000|
|Maximum Capital||No Limit||No Limit||No Limit|