Advantages Of One Person Company (OPC)
1. Separate Legal Entity
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
2. Uninterrupted Existance
A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
3. Borrowing Capacity
A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
4. Easy Transferability
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
5. Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
6. Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company's debts is limited.
Compliances After Incorporation Of One Person Company (OPC)
1. Apply for Sales Tax / Service Tax Registration based on the nature of Business.
2. Filing Income Tax Return of Company on or Before 30th September every year.
3. To maintain proper Books of Accounts.
4. To Maintain Minutes Book and all statutory registers
5. To comply with SS-1 and SS-2
6. Get your account books Audited Every Year.
7. Filing of form MGT-7, Form AOC-4 every Year.
8. No intimation required to be given to ROC in case of First Auditors. Form ADT 1 to be filed within 15 days of 1st AGM of the Company
1. Subscriber to memorandum is only 1 person. Directors can be more than 1 in number.
2. Member of OPC is not required to hold Annual General Meeting. Therefore, the financial statements in Form AOC-4 shall be filed with Registrar within 180 days from the closure of Financial Year.
3. OPC is required to do every compliance which a Private Company is required to do.
4. One Person can Open only 1 OPC and 1 Nominee Can become Nominee in Only 1 OPC.
5. Minimum Authorized Capital of OPC shall be 100,000
6. Paidup Capital shall always be equal to Authorized Capital in case of OPC