One Person Company
A One Person Company (OPC) is a type of business entity that allows a single individual to operate and manage a corporate entity with limited liability. It was introduced to provide a legal framework for solo entrepreneurs to start and run their businesses without needing to form a traditional partnership or rely solely on a sole proprietorship structure.
Introduction
One Person Company
A One Person Company (OPC) is a type of business entity that allows a single individual to operate and manage a corporate entity with limited liability. It was introduced to provide a legal framework for solo entrepreneurs to start and run their businesses without needing to form a traditional partnership or rely solely on a sole proprietorship structure
Benefits
One Person Company
Limited Liability:
The primary benefit of OPC is limited liability protection, where the liability of the sole owner is limited to the extent of their investment in the company. Personal assets are generally protected from business debts and liabilities.
Sole Ownership and Control
The owner of an OPC retains full control over the business operations and decision-making processes. This autonomy allows for quick decision-making and efficient management.
Ease of Formation
OPCs have a simpler and faster incorporation process compared to private limited companies. It requires only one person to act as both the shareholder and director, reducing administrative complexities.
Access to Funding
Being a registered entity, OPCs can easily raise funds through equity or debt financing. This enhances access to capital from investors, banks, and financial institutions to support business growth and expansion.
Separate Legal Entity
An OPC is a distinct legal entity separate from its owner. This allows the company to enter into contracts, own assets, and incur liabilities in its own name, enhancing credibility and protecting personal assets.
Perpetual Succession
OPCs enjoy perpetual succession, meaning the company continues to exist even in the event of the owner’s death or incapacity. The nominee appointed by the owner takes over management as per legal requirements.
Minimal Compliance Requirements:
OPCs have fewer compliance obligations compared to larger companies. For instance, they are exempt from holding annual general meetings (AGMs) and have simplified reporting requirements.
Brand Building and Credibility:
Operating as an OPC enhances the company’s credibility and trustworthiness in the market. It gives a professional image to customers, vendors, and partners, potentially leading to more business opportunities.
Checklists
Required Documents For Income Tax
Aadhar Card
In other cases, an Aadhar card, the director(s), or partner(s) is required for Income Tax .
Pan Card
In other cases, a PAN card or the director(s) or partner(s).
GST registration
GST Certificate Issued by the GST Department.
Bank Account Details
Required Cancel Cheque and Bank Statement.
Business Type
Required Type Of Business like Partnership, Private Limited, OPC.
Proof of investment
The nature of the business, like the kind of service you offer.
Timeline
Income Tax
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Process
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