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When our idea is unique and we have enough resources to start a company, and we do not want to share the profits, then One Person Company (OPC) Registration is the better option. The law makers in India had introduction the new Concept, One Person Company (OPC) under the new Companies Act 2013. This move inspired the corporatization of micro and small businesses, with a simpler legal formalities so that the small entrepreneur is not compelled to devote more time, energy and resources on complicated legal formalities. This helped our economic development as well as it created new employment opportunities. One Person Company (OPC) Registration can do by any Indian Resident, who is an Indian National. One Person Company (OPC) Registration can also done by converting his sole proprietorship business. The One Person Company is one of the most convenient form of business entity, if the business man is unable to find a partner or he/she don’t wants to share his/her business ideas and profits. Even if the new concept of OPC is in the nascent stages in India, it is recognized by all.
The One Person Company concept holds a positive future for small traders, entrepreneurs with low risk taking capacity, artisans and other service providers. The One Person Company (OPC) would act as a launch pad for such entrepreneurs to showcase their capabilities in the global arena. After One Person Company (OPC) Registration, it will get a legal personality unlike a Proprietorship and is registered under the Companies Act and is governed by the Company Law/Corporate Law. It has a separate identity but different from the owner of the One Person Company (OPC). Since a One Person Company (OPC) assumes its own personality, the rights and duties of a One Person Company (OPC) are different from those enjoyed by the Owners of the One Person Company (OPC). The shareholder of a One Person Company (OPC) is not its proprietors, but mere suppliers of capital. One Person Company (OPC) can sue and be sued on its own name.
After One Person Company (OPC) Registration, there is provision for conversion to other types of legal entities by induction of more members and amendment in the Memorandum of Association. So in future if the One Person Company needs more support, it will be eassier. There is no need to chasnge the name at that time, because the name is already registered with Registrar of Companies.
The One Person Company has only one Share Holder. Hence owner’s word will be the final decison. No other person can interfere in the Management of an OPC
An incorporated One Person Company (OPC) is an entity with perpetual succession. The death of a proprietor does not affect the existence of the One Person Company (OPC).
One Person Company is basically a Private Limited Company. It gives the individual entrepreneurs all the benefits of a company, which means they will get credit, bank loans, access to market, limited liability, and legal protection available to companies by virtue of acquiring the legal status and perpetuity.
The volume of compliance by a one person company is much lesser in terms of filing returns, balance sheets, audit etc. Compare to Private Limited Companies, One Person Company has relaxation on compulsory holding of meetings.
MOA stands for Memorandum of Association whereas AOA means Articles of Association. Both these documents act as an important source of information for various shareholders and other stakeholders associated with a Company.
MOA reveals the name, aims, objectives, registered office address, clause regarding limited liability, minimum paid up capital and share Capital of the Company. In short, it explains the relationship of a Company with the Outside world.
<p><strong>AOA stands for Articles of Association</strong> are the necessary documents to be submitted when the company is incorporated with the Registrar of Companies (ROC). When AOAs are in conjunction with the MOA, they are called the Constitution of the Company.</p>
The registration certificate or incorporation certificate has a lifetime validity. There is no need of any renewal of Registration. Certificate issued by Ministry of Corporate Affairs under Government of India is valid all over the world