One Person Company Registration Ahmedabad

OPC Registration in Ahmedabad:

One Person Company is a new type of business which is run by one entrepreneur to operate the corporate entity with a limited liability protection for the member. It was introduced through the Companies Act,2013 allowing them to create a single person economic entity. It is the same as a Company different from its legal entity and offering limited liability protection to its shareholder while having a continuity of business. To form an OPC only one director or member in need, both can be the same person. Unlike in Limited Liability partnership and Private Limited Company, at least two members are required to do a business. If One Person Company crosses turnover of 2 crores it must be transferred to a Private Limited Company. However, before its introduction in India, it has got high prominence in countries like USA, UK, CHINA, AUSTRALIA, etc. They are not allowed to carry out activities of non-banking financial companies. An OPC is considered to be a fusion of a Sole Proprietorship and a private Limited Company because it is enjoying the benefits of a Private limited Company like separate legal entity, perpetual succession, etc and more it is a Sole Proprietorship as only one director is required to form an OPC.

Reasons to register an OPC registration in Ahmedabad:

I often encountered a question that many single founders ask that whether they can register a private limited company. OPC is already in existence but due to lack of awareness, people are still unaware of this type of company.

When you are a single owner an wants to establish the business, then you can choose One Person Company (OPC) as your form of business.

Reasons why you should opt for One Person Company (OPC) as your form of business.

Body Corporate: One Person Company was introduced in the year 2013 and it is by nature is a private limited company. Further, it is a body corporate, that means it has a separate legal existence and therefore, in the event of any legal case, it is the company that will be liable and not you personally. E.g. Mr. A got injured by using your product, now he can sue your company and demand a claim, but he cannot sue you personally because you are working under a company which is a separate legal entity.

No Minimum Capital: Through it was abolished in the year 2014 but people still are not aware of it. To register a One-Person Company (OPC), there is no requirement of a minimum capital amount. You can choose as per your capacity. E.g. If you want to start a company with Rs.5000, then you are allowed to do it so.

No High Cost for Compliances: This is the strongest myth that people are aware of. First of all, OPC Company is the freest company than any other type. Further, compliances under OPC are not to be afraid off, because it may cost you 8 to 10k yearly compliance that you prepare a proper legal file which can be of immense use e.g. to apply for a loan, credit card, CC limit, applying for tender etc.

Easy funding: Most people are not aware of an funding is based on your civil score and if you have a bad civil score then it is difficult to get the loan. However, if you have incorporated a company, then your civil score is of value because then OPC civil score will be checked and hence, you can avail loan funding even when your civil score does not allow you to.

Easy hiring: Do you know the most difficult part of establishing a start-up is to build a good team and as per research it is found that it is easier to hire people in a private company than under proprietorship. A proprietorship is not a registered form of business and therefore has no legal existence. Hence, form a company and build a team.

Easy conversion into Private Limited Company: Also, it is not that once OPC is established, it can’t be converted into a private limited company. As per law, you can easily convert the OPC into a private company by just filing a single form. However, at least 2 years must have been passed.

Minimum requirements to register OPC: Further, it is very easy to register a one-person company in India. You just need to fulfill the following requirements:

One founder and one nominee are required. The nominee is the person who shall take over the company in the event of the death of the sole owner.

PAN card, Aadhaar card, and bank statement are required for both owner and nominee.

Electricity bill and NOC is required for the place where the company is to be registered.

The total fees for OPC registration with Hubco.in are only Rs.11,000 (all inclusive) and your company can be formed in 5 to 8 days depending upon how much fast you provide us with the document.

Mandatory Conversion to Private Limited Company:  Once the company reaches a turnover of Rs.2 crore and the capital is increased to Rs.50 lakh then the One Person Company (OPC) is mandatory to be converted to a Private Limited Company by filing a single form.

The benefit of being an MSME: Through, anyone can register under MSME in India, however, if you register yourself as a private limited company, then it certainly reaps you benefit in the form of easy loan funding.

Why are MSME given easy loan funding at a cheaper rate of interest? There are certain priority sectors to which bank have to lend money at the cheaper rate of interest. These are decided by the Reserve Bank of India (RBI). Micro Small and Medium Enterprises (MSME) one of the priority sectors which are awarded loan funding.

International Recognition: People who are involved in the export business knows that how much it is difficult to establish the export business because the person outside India doesn't trust easily.

In nature one-person Company (OPC) is a kind of small private limited company and just like other companies its details are also available in the government domain, therefore it becomes easier to establish trust internationally.

Ahmedabad is a perfect location to do a OPC Registration considering that it is a rising area for small and upcoming businesses , mainly because of its excellent rise in the education sector. the cultural and traditional importance of the city enables the city to make sure that the company can perform in a good manner.

Limited Liability Protection to Directors and Shareholders:

OPC helps in protecting your personal assets and savings if the business goes into crisis unlike in the case of sole-proprietorship where the member had unlimited liability.

Legal status and social recognition for your business:

Your OPC will be a world-renowned private limited structure and you will be able to enjoy corporate identity in the society. This will also help in attracting quality work-force and in retaining them.

Complete control of the company with the single owner:

This leads to fast decision making and execution. You can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.

Helps for testing the business model and enable funding:

The OPC structure helps the start-up entrepreneurs to easily test the business model, a prototype and upon building a marketable product, approach angel investors, venture capitalists for funding and easily convert it into multi shareholders private limited company.

Bank loans can be easily availed:

Banking and financial institutions prefer to lend money to the company rather than proprietorship firms.

Tax flexibility and savings:

As a director, you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend money to your own company and earn interest. This helps in tax planning and savings.

Easy to manage your business and freedom from compliances:

OPC is one of the easiest forms of corporate entities to manage because it requires the minimal number of documents to be filed with the ROC.

Why do I need OPC Registration in Ahmedabad?

Here are the ten points describing as to why you should register One Person Company (OPC) as your form of business.

Point No.1 – Body Corporate: One Person Company was introduced in the year 2013 and it is by nature is a private limited company. Further, it is a body corporate, that means it has a separate legal existence and therefore, in the event of any legal case, it is the company that will be liable and not you personally.

E.g. Mr.A got injured by using your product, now he can sue your company and demand a claim, but he cannot sue you personally because you are working under a company which is a separate legal entity.

Point No.2 – No Minimum Capital: Through it was abolished in the year 2014 but people still are not aware of it. Kindly note, to register a One Person Company (OPC), you don’t need a minimum capital amount. You can choose as per your capacity.

E.g. If you want to start a company with Rs.5000, then you are allowed to do it so.

Point No.3 – No High Cost for Compliances: This is the strongest myth that people are aware of. First of all, OPC Company is the freest company than any other type.

Further, compliances under OPC are not to be afraid off, because it may cost you 8 to 10k yearly on compliances but it helps you prepare a proper legal file which can be of immense use e.g. to apply for a loan, credit card, CC limit, applying for tender etc.

Point No.4 – Easy funding: Most people are not aware that loan funding is based on your cibil score and if you have a bad cibil score then it is difficult to get the loan. However, if you have incorporated a company, then your cibil score is off no value because the OPCl score will be checked and hence, you can avail loan funding even when your cibil score does not allow you to.

Point No.5 – Easy hiring: Do you know the most difficult part of establishing a startup is to build a good team and as per research it is found that it is easier to hire people in a private company than under proprietorship.

A proprietorship is not a registered form of business and therefore has no legal existence. Hence, form a company and build a team.

Point No.6 – Easy conversion into Private Limited Company: Also, it is not that once OPC is established, it can’t be converted into a private limited company.

As per law, you can easily convert the OPC into a private company by just filing a single form. However, at least 2 years must have been passed.

Point No.7 – Minimum requirements to register OPC: Further, it is very easy to register a one-person company in India. You just need to fulfill the following requirements:

- One founder and one nominee are required. The nominee is the person who shall take over the company in the event of the death of the sole owner.

- PAN card, Aadhaar card, and bank statement are required for both owner and nominee.

- Electricity bill and NOC is required for the place where the company is to be registered.

- The total fees for OPC registration with Hubco.in are only Rs.11,000 (all inclusive) and your company can be formed in 5 to 8 days depending upon how much fast you provide us with the document.

Point No.8 – Mandatory Conversion to Private Limited Company: Yes, once you reach a turnover of Rs.2 crore and increasing the capital to Rs.50 lakh the One Person Company (OPC) is mandatory to be converted to a Private Limited Company by filing a single form.

Point No.9 – Benefit of being an MSME: Through, anyone can register under MSME in India, however, if you register yourself as a private limited company, then it certainly reaps you benefit in the form of easy loan funding.

Point No.10 – International Recognition: People who are involved in export business knows that how much it is difficult to establish the export business because the person outside India doesn't trust easily.

Therefore, One Person Company (OPC) is a private limited company by nature and its details are available in the government domain, therefore becomes easier to establish trust internationally.

Process for OPC Registration in AhmedabadIndia:

Any person can apply for One Person Company procedure with submitting the required documents and appointing a nominee who becomes the responsible person from the company in case of death or incapacity of the registered director. Following steps are to be taken in order to register for One Person Company:

1.      First, the proposed director, or the person willing to register the company on his/her name submits his Digital Signature Certificate to the registrar office. Following this, he/she is provided with a Director Identification Number (DIN) mentioning his rights in the company.

2.      Next step is selecting the suitable name for the company. A person can select any name which he/she wants, as long as the name is available. After submitting the desired name, the Ministry of Corporate Office checks the availability of the proposed name. If the name is not available, they suggest an alternative name for the company.

3.      The proposed director needs to prepare the Memorandum of Association and Article of Association together with other documents.

4.      Theres a minimal fee and stamp duty which the director has to pay. After that, the Registrar of Companies verifies the documents.

5.      If everything goes fine, the director receives the registration certificate which ensures that the one person company is registered on his name.

Company Vakil also provides for a simple procedure for OPC registration in Ahmedabad.

Minimum Requirements for OPC Registration in Ahmedbabad:

•            Minimum 1 Director.

•            Minimum 1 member.

•            Minimum Share Capital shall be Rs. 100,000 (INR One Lac)

•            Application of allotment Director Identification Number (DIN)

•            DSC (Digital Signature Certificate)