You must first be familiar with the definition of a one-person company in order to register one in India. One Person Companies, often known as OPCs, are a type of Private Limited Company created in accordance with the Companies Act of 2013. It is held by a single shareholder who has all of the OPC's shares, giving him or her sole access to all of the company's earnings. However, the sole shareholder's liabilities are only as great as the unpaid equity capital he subscribed to in the OPC. The fact that an OPC has limited liability actually distinguishes it from other sole proprietorships and other single-owner companies. Therefore, a One Person Company will surely be your best option if you are a business's sole owner and are not willing to share ownership with any other organization.
A one person firm should be your obvious pick among all other kinds of single-owner businesses! Do you ever wonder why? For more information on the advantages of registering your startup as a one-person company in India, please see the table below.
The only shareholder has the right to keep all of the company's profits.
The sole owner's obligation is limited to his capital subscription.
Lending to properly registered firms is preferred by banks and other financial institutions.
The incorporation process is entirely online and very straightforward.
In an OPC, the lone shareholder has complete authority to make decisions.
The following requirements must be met before registering as a One Person Company: -
The most important part of one person company registration is the documentation because the correctness of their files with the ROC determines whether or not your entire application will be approved or rejected. The documents of the promoters and the documentation of the registered office of the OPC fall under the two kinds of documents needed for one person company registration.