OPC is a company that can have only one member as a shareholder and minimum one member as Director.
OPCs are allowed to have a maximum of 15 directors.
A One Person Company can be incorporated within 7 days, thanks to the recent introduction of SPICe forms. SPICe form allows to complete the entire process of incorporation in through one form. As a result, after incorporation all the incorporation documents, PAN & TAN are received over email. This helps the company to open bank account and start business operations immediately.
The One Person Company is considered as a separate legal entity. In the eyes of the law, a company is a person, having a common seal, and perpetual succession.
In an OPC, one person holds the entire share and has complete authority over the operation of the business. The liability of the person will be to the extent he has invested in the business.
The OPC will become the owner of its assets, and the members will not have any insurable rights in the assets of the company.
One person company business structure enjoys corporate status which helps the entrepreneur to attract quality workforce and retain them by giving corporate designations.
In an OPC, Directors’ remuneration, rent and interest are a deductible expense which reduce the
profitability of the Company and ultimately brings down taxable income of your business.
OPC is completely controlled and managed by the Single Owner. It leads to quick decision making and execution. The sense of belonging motivates to grow the business further.
One Person Company have a lesser compliance-related burden such as No prerequisite to holding annual or Extra-ordinary General Meetings.
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