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One Person Company (OPC)
One Person Company (OPC)
Operate as a single owner with the benefits of a corporate framework. Taxyaari helps you register a One Person Company (OPC), providing a distinct legal identity while retaining full control, ideal for individual entrepreneurs. For more details on the service and the processes involved, please refer toĀ theĀ FAQsĀ below.
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FAQs
What is a One Person Company?
An OPC is a private limited company that can have only one director and shareholder. It provides limited liability protection to its owner, meaning that the liability of the owner is limited to the amount of capital invested in the company. An OPC can enjoy all the benefits of a private limited company, such as separate legal entity, perpetual succession, and access to credit.
What are the Benefits of forming an OPC?
Limited Liability: The owner's liability is limited to the amount of capital invested in the company.
One-Person Control: OPC allows the owner to have full control over the business without the need for any partners.
Legal Entity: OPC has a separate legal identity from its owner, which means it can enter into contracts, own property, and sue or be sued.
Easy Transferability: The ownership of an OPC can be easily transferred through the transfer of shares.
Access to Credit: OPCs are considered more trustworthy by banks and financial institutions, making it easier for them to access credit.
What are the Demerits of forming an OPC?
High Cost: The cost of registering an OPC is relatively high compared to other forms of businesses, such as a sole proprietorship.
Limited Growth: OPCs cannot have more than one director, which limits their growth potential.
Complex Compliance: OPCs are required to comply with several legal formalities and have to file annual returns and audited financial statements.
What is the Time Required for forming the OPC?
The time required for registering an OPC varies from state to state and can take between 7-9 working days approximately.
What is the Income Tax Rate on Income and Income Distribution by an OPC?
In India, the corporate tax rate for One Person Companies (OPCs) ranges from 15% to 40%,depending on specific categories and eligibility criteria. Additionally, this rate is subject to applicable surcharges and the health and education cess.
What essential documents and information does Taxyaari require from you for registration?
PAN Card of the owner, Aadhaar Card or Voter ID card, DSC, DIN of Director, Address proof of the owner, Passport size photograph of the owner, NOC from the owner's landlord (if the property is rented), Electricity bill or any other utility bill for the office address
Authors Remarks:
One Person Company is a suitable option for individuals who want to start a limited liability business without any partners. It provides several benefits such as limited liability protection, easy transferability, and access to credit. However, it also has some demerits such as high cost and limited growth potential. Overall, OPC can be a good option for small businesses or startups.