OPC registration in Chennai
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The Companies Act of 2013 introduced the One Person Company (OPC) concept. Any one individual who is an Indian citizen and resident in India is qualified to consolidate One Person Company and to get OPC registration in Chennai. This type of company formation is a great alternative to the sole proprietorship model and can apply for StartupIndia Recognition, bank credit facilities, and more advantages than a sole proprietorship informal business.
OPC is suitable for a self-sufficient small business. Appointment of One nominee is must (Indian Resident age at least 18 years). An OPC may have multiple directors, but only one shareholder is allowed.
Why OPC is introduced in India?
One of the new ideas that the New Act has included is the one-person company, or OPC. This idea suggests that a single person could run a business. The corporatization of small businesses will rise as a result of OPC’s introduction to the legal system.
In India, in the year 2005, the JJ Irani Committee recommended the development of OPC. It had proposed that such a substance might be furnished with an easier legitimate system through exceptions so the little business person isn’t constrained to dedicate impressive time, energy and assets on complex legal compliance.
Inter-country comparison
The possibility of OPC is new in India, however this idea has been now been common and running effectively in numerous different nations like China, Singapore, France, and U.S.A.
The Great Britain was the country which initial cleared the path for such idea through its choice in Saloman and Saloman Co Ltd. It was in the year 1925 when England gave legal status to this idea in their country.
This idea, referred to as OPC having OPC registration in Chennai, was eventually adopted by many other nations in their corporate law.
Nonetheless, the construction or perquisites for the fuse of OPC might differ from one country to another any place they are taken on however the really motive behind is of advancing business and speeding up their financial turn of events.
- Capital Requirement:
The capital of the company must “meet the expectable strains of a business of its size and its nature,” as stated in the regulations governing the incorporation of OPC in nations like the United States and the United Kingdom.
India, China, Pakistan, and France, on the other hand, have explicitly stipulated a minimum capital requirement for OPC which can get OPC registration in Chennai.
(ii) Natural and Legal Persons: The vast majority of the nation’s regarding incorporation of OPC with OPC registration in Chennai doesn’t place limitations concerning regular and lawful people.
However, only natural persons are permitted to incorporate OPC in India and can get OPC registration in Chennai.
Does OPC need GST?
If an OPC company that has OPC registration in Chennai supply goods or services outside of the state.
Regardless of annual revenue, it must register for GST.
Criteria
If a company sells goods or services outside of the state, regardless of annual revenue, it must register for GST as a one-person company. And also can get OPC registration in Chennai.
For instance, if an OPC in Maharashtra supplies Punjab with goods, then GST registration is required.
Existing VAT/Excise registration
A Current OPC with OPC registration in Chennai having service tax/VAT/Excise registration must expected to select for GST registration.
GST office at first gave temporary ID and Secret word to GST migration.
Casual taxable person
Someone who occasionally provides goods or services without a fixed location is a casual taxable person.
A fireworks shop that is set up during the Diwali festival and sells fireworks or a temporary food stall is an example of a casual taxable person.
E-commerce seller
OPC with OPC registration in Chennai that supply goods or services through an e-commerce platform are required by law to apply for GST registration.
OPC companies, for instance, sell goods on e-commerce platforms like Flipkart, Paytm, Amazon, and so on need to submit an application to register GST for work contracts in India.
Can ownership of OPC be transferred?
A One-Person Company having OPC registration in Chennai is an appealing option for entrepreneurs who want to transfer their business to a family member or a third party because it can be easily transferred to another person without any legal complications.
Other benefits of OPC
OPC that has OPC registration in Chennai, has many advantages as given below.
Easy to manage and maintain
The fact that it is relatively simple to manage and maintain a one-person company with OPC registration in Chennai is the primary advantage of starting one.
Because the entrepreneur is the sole owner of the business and it is registered with the Ministry of Corporate Affairs, making decisions and carrying them out is easier and faster.
Low cost maintenance
A One-Person Company having OPC registration in Chennai is a cost-effective option for entrepreneurs because it requires less capital than a private limited company and has fewer regulatory compliance requirements.
Because it is not required to adhere to the various regulations that are imposed on private limited companies, a One Person Company that has OPC registration in Chennai also has lower maintenance costs than a private limited company.
Limited Liability
The owner’s liability is limited to their investment in the business, which is one of the main advantages of a one-person company with OPC registration in Chennai.
This really intends that assuming the organization brings about any misfortunes, the individual resources of the proprietor are not in danger.
Finances can be accessed easily
Venture capitalists and other private equity investors can only lend money to one-person businesses with OPC registration in Chennai, while sole proprietorships cannot.
This makes it simpler for the One Person Company to raise the capital vital for its activities.
What happens to OPC when the owner dies?
It is important to note that if a person is the member of the company the same person can be nominee for another OPC that has OPC registration in Chennai.
However, a person cannot simultaneously serve as a member or nominee of more than one OPC.
If a person becomes a nominee or a member of more than one OPC with OPC registration in Chennai, they must withdraw their membership or nomination from the companies within six months so that they are only associated with one OPC.
Form INC-3 and the written consent of the person designated as the nominee are required to name a nominee. By notifying the company and the only member of the One Person Company in advance, the nominee is free to revoke the consent at any time.
In addition, when the sole member’s position is vacant due to death or disability, the nominee plays a crucial role in securing any contracts.
The nominee assumes the role of the sole member and becomes a member of OPC which has OPC registration in Chennai.
When the candidate turns into the part, in no less than 15 days will assign one more new chosen one with the last option’s earlier assent through the Form INC-3.
By filing the notice of cessation and nomination on Form INC-4 and Form INC-3 with the written consent of the new nominee within 30 days of the change in membership, the OPC with OPC registration in Chennai must notify the Registrar.
Important role played by nominee
- After the promoter passes away, the nominee assumes the company’s responsibilities.
- The nominee also receives dividends and shares.
- Upon the promoter’s death, the nominee will assume the company’s responsibilities.
Conclusion
With the Organizations Act, 2013 the idea of OPC has now become reality. OPC with OPC registration in Chennai offer many opportunities to all those who are looking to kick start their own venture with a form of the organized business.
This concept has been a keen interest among entrepreneurs who are looking forward to doing business with the entrepreneurial rights that are afforded by proprietorships but without the baggage of personal liability that a proprietorship is bound to carry.
Before attracting new investors, this idea will assist young or start-up entrepreneurs in testing a business model, product, or service.
The feature of limited liability is an added advantage because the compliance pressure to adhere to it is relatively low.
All owners of small businesses and individual proprietors will greatly benefit from this concept.
It will give individuals more right to manage their businesses while still enjoying the benefits of a company. It should be noted that this idea will open the door to more favourable banking services, particularly for loans and advances to sole proprietors.
Simultaneously, it will likewise support the unfamiliar assets in India as the necessity of chosen one investor would be discarded.
