One Person Company registration or incorporation is the subject of involving a legal process which should be handled by a professional tax consultant. As per the Indian act, a Public Limited Company has a separate legal identity from its owners. A private limited company has no right to raise capital from public or issue shares for public subscription. The registration of Public Limited Company is complicated compared to proprietorship and partnership firm. DialMyCA offers online incorporation service of One Person Company for Indian citizen at a much affordable price. Choose a plan according to the nature of your business.
One Person Company enjoys a separate legal entity. As per law, it enjoys the existence of a person that has a common seal, and perpetual succession. It has the authority to exercise all functions of an incorporated person.
OPC has only one shareholder and there is no option of transferring the share. The reason being that if the share is transferred the company will lose its identity of being a one person company. All the shares of the company are also transferred as then the entire structure and ownership of the company will change. There is no clear guidance or clause that can explain the transfer of shares.
OPC makes a valid contract with its shareholders or directors. Thus a director is entitled to remuneration and a lessor can receive rent. Director’s remuneration, rent, and interest are deductible expenses and this reduces the profitability of the Company, thereby the taxable income of the business is reduced.
OPC is managed by a single owner thus there is limited confusion and quick decision-making. Importantly, when there is a sense of ownership thus the business is handled in a better way.
OPC is the most popular form of business and most large organizations prefer to deal with private limited companies rather than proprietorship firms. OPC enjoys a corporate status in society and hires the desired workforce. The workforce can be assigned good positions and thus are interested in the work and give good performance.
OPC enjoys several benefits under Enterprises Development Act, 2006 as newly incorporated OPC is a Micro, Small, or Medium as covered under the act. Under the law, if the buyer or seller receives any late payment then they are entitled to receive an interest rate, which is three times the rate of the bank.
15400+ GST 15%
60000+ GST 18%
A. As the name suggests OPC has a single owner.
A. Minor, foreign citizen, Indian non-resident, a person who is not eligible to contract are restricted from forming OPC
A.OPC does not have the option of the transfer of shares but it can be converted into a Private Limited Company.