One Person Company
What is OPC registration?
One Person Company in India is a new concept that has been introduced with the Company’s Act 2013. One Person Company in India is incorporated by a single person. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business then he or she should only opt for a sole proprietorship.
According to Section 2 (62) of the Company’s Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company.
A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.
Proprietorship vs Limited Liability Partnership (LLP) vs Company
Features | ||||
Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
Ownership | · Sole Ownership | · Min 2 Partners · Max 50 Partners | · Min 2 Shareholders · Max 15 Directors · Max 200 Shareholders · 1 Director · 1 Nominee Director | |
Registration Time | 7-9 working days | |||
Promoter Liability | Unlimited Liability | |||
Documentation | · MSME | · LLP Deed · Incorporation Certificate | · MOA · AOA | |
Governance | – | Under Partnership Act | ||
Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
Compliance Requirements | · Income tax filing if turnover is more than Rs.2.5 lakhs | · ITR 5 | · Form 11 · Form 8 · ITR 5 | · ITR 6 |