OPC registration in Bangalore

The Companies Act of 2013 introduced the concept of a one-person company in India. In India, a single person forms a one-person company. A single person was unable to start a business before the Companies Act of 2013. An OPC combines the advantages of a sole proprietorship with those of a company. Previously, if a person had to start a business, they could only choose a sole proprietorship.

As per Section 2 (62) of the Company’s Demonstration 2013, a company can be shaped with only 1 director and 1 member. One-person companies, which are registered in India, have fewer compliance requirements than private limited companies.

A One Person Company Enrollment in India can be gotten under the Companies Act 2013 with only one single member and one Director.

Members and directors may also be the same person. An OPC in India can be registered here by anyone, whether they are a resident or non-resident Indian.

One Person Company types

OPC that has OPC registration in Bangalore is of the following types.

a company that is limited by shares,
a company that is limited by guarantee, or
an unlimited company

Therefore, following the Companies Act of 2013, you can establish five different types of OPC and can have OPC registration in Bangalore. These are:

OPC Limited by Offers
OPC Limited by Guarantee with Offer Capital
OPC Limited by Guarantee without Offer Capital
Unlimited OPC with Offer of Capital
Unlimited OPC without Offer of Capital

Criteria for OPC Shareholder and Nominee Member Eligibility

A “natural person” should be the person who wants to be an OPC shareholder or nominee. This means that, in contrast to other companies, where a corporation can become a shareholder, an OPC shareholder and nominee must be real people who are Indian.

The individual must be an Indian citizen and a resident. They should not be under the age of 18. According to the Act, a person is considered a resident of India if they have resided in the country for at least 120 days during the previous fiscal year.

An individual can be a part of or chosen one to only each OPC that can get OPC registration in Bangalore in turn. A person must give up either membership or nomination to more than one OPC within 180 days if they acquire them by virtue.

One Person Company and sole proprietorship

A sole proprietorship was the only option available to individuals who wanted to start their businesses up until recently. You now have a different choice: a single-person business.

The idea of one Person Company which can get OPC registration in Bangalore permits a solitary individual to run a company limited by shares.

A sole proprietorship is a business run by a one person without any distinction between the owner and the company.

Advantages of sole proprietorship

Simple to set up.
There is no lengthy registration procedure for OPC registration in Bangalore.
A sole proprietorship does not have to submit financial statements or audit reports to the OPC, whereas an OPC that has OPC registration in Bangalore requires you to do so.
No mandatory audit is required for a sole proprietorship if the type of business does not warrant it.

Takes fewer investments Compliances are less than OPC (most minor of all other types of businesses) Tax is more secondary as long as the income is more secondary than the income tax slab for individuals.

Disadvantages of sole proprietorship

As the income grows, one may have to pay higher taxes according to the tax slab, whereas OPC that has OPC registration in Bangalore is taxed differently.

A sole proprietorship is a good option for small businesses that want to avoid accumulating debt or obtaining funding.

However, the sole owner must also bear all losses. It is difficult to obtain funding or a loan because banks and other lenders are hesitant to invest in this type of business.

Starting your business as a sole proprietorship is still an option if you do not intend to grow it in the future. You always have the option of registering your business as an OPC later and can get OPC registration in Bangalore.

OPC

Advantages

Limited liability for the owner of the business
The company is a separate legal entity.
The OPC registration in Bangalore gives it more credibility.
It is easy to get loans or funding for the business because lenders trust the registered business. Hence OPC registration in Bangalore is important.
There is perpetual succession.
If the owner dies or becomes unable to run the business, the nominee can take over.
This is a sustainable business structure that works no matter how big your business gets.

Disadvantages

Compared to sole proprietorships,
OPCs cost more to set up and operate,
require more compliance,
And no one can own more than one OPC registration in Bangalore at a time.

The OPC with OPC registration in Bangalore is best for individuals who need to begin a business with a corporate construction yet at the same time need to hold successful command over all the business tasks. You won’t be held liable if you grow the business.

Feel free to contact Shoplegal if you are still unsure which one is best for your company, and our experts will help you make the right choice and to get OPC registration in Bangalore.

What are the circumstances under which an OPC must transform into a Pvt. Limited liability company or public limited company?

According to the Companies (Incorporation) Rules, 2014, an OPC with OPC registration in Bangalore must change into a private limited company or a public limited company if its paid-up capital exceeds INR 50 Lac or its average annual turnover exceeds INR 2 Crore for three consecutive financial years.

Within 60 days of exceeding threshold limits, the OPC is required to notify the relevant ROC via Form INC-5 under any of these conditions.

In addition, an OPC cannot voluntarily transform into any kind of business within two years of its incorporation, unless the threshold limits are exceeded in one of these two instances.

How to Make an OPC a Private Inc. or a Public Limited Liability Company in India?

The concerned OPC is obligated to strictly adhere to the rules and regulations outlined in Rule 7(4) of the Companies (Incorporation) Rules of 2014. And in Section 18 of the Companies Act of 2013 for both voluntary and mandatory conversions.

The OPC must roughly speak, adapt its MOA and AOA to the desired type of company in addition to complying with the statutory requirements of that form. It should be noted that the interested OPC for OPC registration in Bangalore must have at least two directors and two shareholders to convert into a private limited company.

The OPC, on the other hand, must have at least seven shareholders and three directors to be converted into a public limited company.

The Application Form that will be utilized is Form INC-6 for either the voluntary or mandatory conversion of an OPC with OPC registration in Bangalore into a private limited company or a public limited company.

Within 30 days of the passing of a special resolution in the general meeting in support of the proposed private limited or public limited company, the OPC with OPC registration in Bangalore is required to submit the Form INC-6 and the MGT-14 to the relevant ROC in the event of a voluntary conversion.

However, in the event of a mandatory conversion, the OPC with OPC registration in Bangalore must submit Form INC-6 within six months of the date of exceeding either of the two threshold limits.

Conclusion

It is not possible to incorporate or transform a one-person business into a section-8 company.

The OPC with OPC registration in Bangalore gained prominence in several nations before its introduction in India, including the United States, the United Kingdom, China, Australia, and Singapore, among others.

These OPC with OPC registration in Bangalore, on the other hand, are not permitted to operate as a non-banking financial company in India.

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