Looking to understand why a lone entrepreneur should incorporate an OPC? Look no further, as we’ve got you covered.
- An OPC is very similar to a private limited company so it is quite hassle-free to raise funds from venture capitalists, angel investors, incubators, and other sources. Banks and financial institutions also prefer to lend to companies rather than sole proprietorships. As a result, obtaining finances becomes simple.
- The Companies Act of 2013 exempts the OPC from some compliance requirements. The cash flow statement does not have to be prepared by an OPC. Moreover, a company secretary is not required to sign the books of accounts or annual returns, which can be signed by the director himself.
- The incorporation of OPC is simple because just one member and one nominee are necessary. A member can also be a director. The minimum authorized capital for forming an OPC is ₹ 1 lakh, although there is no requirement for a minimum paid-up capital. As a result, compared to other types of companies, it is simple to establish.
- It is simple to administer the OPC’s affairs because it may be established and maintained by a single person. Making decisions is simple, and the decision-making process is rapid. Ordinary and special resolutions may be readily passed by the member by writing them into the minute book and signing them. As a result, running and managing the company is simple because there will be no internal disagreement or delays.
- The OPC is a distinct legal body that protects the single person who has formed it. The member’s liability is limited to his or her shares, and he or she is not personally accountable for the company’s loss. As a result, creditors have the right to sue the OPC rather than the member or director.
For your brand-new, unregistered business, you can select from a selection of company name search in the Vakilsearch company name generator.
OPC Incorporation Procedure
Step 1: Get in touch with Vakilsearch to see whether you’re eligible to file for incorporation and to get a list of all the documents you’ll need.
Step 2: Use our skilled specialists to apply for DSC and DIN for all of the directors.
Step 3: After that, you must apply for a name reservation for your one person company, which is also handled on your behalf by our professionals.
Step 4: We will then file the Spice+ form for company incorporation. Step 5: We will then assist you in applying for your new firm’s PAN and TAN.
Step 6: The RoC will subsequently give your company a certificate of incorporation.
Step 7: We’ll also help you create a bank account and walk you through all of the post-incorporation requirements.
Vakilsearch’s OPC Package Inclusions
- Directors identification number for 1 director
- Digital signature certificate for 1 director (If the shareholders are different from directors, then additional DSC is required for shareholders)
- Guidance for choosing the company name
- PAN and TAN
- Drafting the memorandum & articles of association, RoC filing fees for an authorized capital, government stamp duty, and certificate of incorporation
- Name approval certificate
- GST registration
- PF registration
- ESI registration
- PT registration (only applicable in Maharashtra)
- DBS or ICICI zero balance current account [powered by Vakilsearch].