OPC is a new hybrid form of business which merges the qualities of Sole Proprietorship and company. With the introduction provide the opportunities to the young businessmen who are looking forward to start their own business venture with organised structure.
According to section 2(62) of the Companies Act, 2013, OPC is a company which has only one person as a member. OPC (One Person Company) treated as a private company that means all the provisions applicable to private company also applicable to the one person company.
Through the concept of OPC, law recognized it as the formation of a single person economic entity. Such entity provides the simpler regime through exemptions so that an entrepreneur alone can form its business venture instead of trifle away his time and resources.
Before there is no concept of OPC (One Person Company) in Companies Act, 1956. With the introduction of Companies Act, 2013, the concept of OPC came into existence. So, Sole Proprietorship was the only form of business entity which allows to incorporate a venture with one member only. But, this form of business entity is not adequate with the dynamic business environment which erects the requisite to form a new business entity. The things which make both the entities different are:
The new concept of One Person Company has numerous advantages. The privileges and exemptions enjoyed by One Person Company are:
For more benefits visit Advantages of OPC
There are few drawbacks associated with the One Person Company:
To know more visit Disadvantages of OPC
To know more visit OPC Registration Procedure
To read more visit OPC Compliances
One Person Company has the privilege to convert itself into private limited company, public limited company, limited liability partnership. But in case of conversion of OPC into partnership firm or sole proprietorship, law is silent. With the growth of business more requirements are needed which will be achieved by the conversion of the company. However, conversion of OPC into public company or private company possible either voluntarily or compulsorily.
To know more visit Converting an OPC
While starting a business the initial step is to choose a right business entity for their business. Broadly, there are five business structures in option that can be choosen. These structures have their own advantages and disadvantages. The decision of choosing the right entity depends on the need of the business and the features of the business. Before making any decision one's should know the difference to compare the different entities.
To know more comparison visit OPC Comparison
Every One Person Company registered with the MCA needs to follow certain rules for closure of the company either by way of declaring company defunct or winding up of the company. Proper application has to be filed by the company for closing the company legally by following the prescribed procedure. OPC may wind up either voluntarily or by the order of tribunal.
To know the whole procedure of closing an OPC visit Closing an OPC