One Person Company in Karnal

The 2013 Companies Act introduces a new type of entity to the existing list i.e., apart from forming a public limited or private limited company, the 2013 Act enables the formation of a new entity, a ‘One Person Company (OPC)’.

Selection of the type of business entity is of utmost importance before starting a business. It is beneficial for entrepreneurs to have multiple options available when looking to start a business. OPC, LLP, and Private Limited Company are the three most preferred business entities in India. LLP is formed under LLP Act, 2008. In LLP, the liability of the partners is limited to their contributed amount to the company. LLP works best if no external funding is required by the partners, when they need it then the company can be turned into a Pvt Ltd Company.

In a nutshell, GST is an indirect tax that is levied on the sale, manufacture, and consumption of goods and services. It applies to the entire nation and seeks to make it a common unified market. With the support of a uniform tax structure, GST will enable smooth supply across the whole supply chain in all states.

An OPC means a company with only one person as its member [Section 3(1) of 2013 Companies Act]. As the name suggests, a One-Person company is a company that can be constituted by just one person as its shareholder. An OPC can be contrasted with Private companies, which require a minimum of 2 members to get going. In OPC, the person and the company are considered separate legal entities. In a One-Person-Company, the owner’s liability is limited to his/her investment.

The introduction of OPC was based on the suggestions of the J.J Irani Committee Report on Company Law, which submitted its recommendations in 2005. It said small companies would contribute immensely to India’s economy, but because of their size, they can not be burdened with equal levels of norms & compliance requirements as big public listed companies.

The Law on One Person Company that took shape, as a result, exempted such companies from many procedural requirements, and, in some cases provided relaxations. For instance, an OPC is not required to conduct an annual general meeting, which is a requirement for other companies.

A One-Person-Company also does not require the signatures of both its company secretary and director on its annual returns.

Online company registration In India, One Person company is most recommended for Single founder, if do not have second director, start the OPC now, its very easy to convert OPC to Private Limited Company. One advantage of One Person company is, limited liability for the directors and Shareholders with certain restrictions that are placed on the ownership.

One person company(OPC) has all the benefits of Private Limited Company. All companies Registered in India are governed by Statutory act, Companies Act 2013.

REQUIREMENTS TO FORM AN One Person Company in Karnal

Particulars	OPC
Applicable law	Companies Act, 2013
Regulatory Authority	Ministry of Corporate Affairs
Members required	Minimum one Maximum one
Directors required	Minimum one Maximum 15
Minimum Share Capital	No minimum share capital is required. If capital exceeds 50 lakhs, OPC gets converted into Pvt. Ltd.
Board Meeting	One meeting in each half-year, and the gap between 2 meetings should be at least 90 days.
Statutory Audit	Compulsory
Liability	Limited
Transferability	Ownership can be transferred to the nominee in case of the Director’s death or incapacity to act.
Annual Filing	Financial statements and annual returns to be filed with ROC.
Annual Filing	Financial statements and annual returns to be filed with ROC.
FDI	Not eligible for FDI
To be opted	If Capital requirement is 50 lakhs and turnover less than 2 crores.
Company name	Should end with OPC (Pvt. Ltd.)/ OPC Ltd.

Documents Required for One Person company Registration in Karnal

For Designated Directors

• Pan Card
• Aadhaar Card
• Bank Statement

For Registered Office premises

• Latest Electricity Bill
• No Objection Certificate from the Premises Owner
• Notarize rental agreement in English [or]
• Sale deed/Registery if property is you own the property

Document required

Documents Required

A Certificate of Incorporation serves as a confirmation of a company's formation. Pan card of Company ID Proof: PAN card Address Proof: Ration card/ Aadhar Card/ Driving License/Voter ID 2 Passport-sized photographs of Directors Address proof of the place of business- any utility bill such as water/electricity/telephone/gas bill No Objection Certificate from the premises owner Notarized rental agreement in English (if rented property) Copy of property papers(if own property) A bank account statement that includes name, address, and a few transactions Digital signature for authorized signatory