OPC was introduced in company act 2013, to provide support to the entrepreneur, who has a capability to run the business by themselves. It means one person can run the entire business by without sharing any profit or any loss. One Person Company has some liability as compare to other formation of company registration.
Similar to an organization, one Person Company is a separate legal body from its promoter, it also offers LLP and Pvt. Ltd. One person company can be a Pvt. Ltd. company; if it crosses the annual turnover of Rs. 2 crores and it should be audited at a financial year like all the companies. Hence, it is vital for the entrepreneur to carefully consider the feature of one Person Company to incorporation
Characteristics of One Person Company Registration
- Single hand business only one promoter.
- Uninterrupted Existence.
- Easy Transferability
- Borrowing Capacity
- Owing property
Documents required for One Person Company formulation
- ID proof of partners
- Address proof of partners
- Registered office proof
- Digital signature