The companies Act 2013 completely revolutionized corporate laws in India by introducing several new concepts that did not exist previously. One person is also one of new concept introduced.
One person company (OPC) means a company formed with only one (single) person as a member, unlike the traditional manner of having at least two members. It is recognition of single person economic entity lightens a path for small traders, service providers to venture into business by expanding their opportunities through corporate identity
Benefits of One Person Company
One person company is corporatization of sole proprietorship, so it has all benefits will a corporate enjoys aside to this it has some relaxations in provision of company law. Following are some of benefits of One Person Company.
- It has separate legal entity.
- The liability of shareholder/ director is limited
- The organized version of OPC will open the avenues for more favorable banking facilities
- Legal status and social recognition for your business. It gives suppliers and customers a sense of confidence in business.
- The director and shareholder can be same person
- On the death/disability company can be succeed by nominee.
- Exemption available from various provisions under Company law.
Basic mandatory compliance for OPC
The basic mandatory compliance comprises:
- At least one Board Meeting in each half of the calendar year and the time gap between the two Board Meetings should not be less than 90 days.
- Maintenance of proper books of accounts.
- Statutory audit of Financial Statements.
- Filing of business income tax returns every year before 30th September.
- Filing of Financial Statements in Form AOC-4 and Annual Return in proposed Form MGT 7-A