Table of Contents
Registration of One Person Company
Start a business, sure? One of the first considerations that could come to mind is the legal structure of your business? In this article, we will explore the various types of organization structures that are available and how we can settle on the best corporate structure.
In India, we have generally five forms of business structures, including sole proprietorship, partnership, Ope person company and company (pvt or public), but a few years ago a new hybrid form of partnership and company are known as Limited Liability (LLP) emerged. Each mechanism has its own advantages and disadvantages and relies on the particular circumstances of each small businessman as to which arrangement is better suited to its enterprise. This includes the level of personal responsibility you are willing to pay for your corporate debtors, your personal tax status, the level of operation you want to conduct, and however you want your business to be viewed.
COMPARE REQUIRED SERVICES
Comparative of various business structures to Pic the right entity type
| Particular |
Proprietorship Firm |
One Person Company |
Partnership Firm |
Private Limited Company |
Limited Liability Partnership |
|
|---|---|---|---|---|---|---|
|
Act |
No specified Act |
Companies Act, 2013 |
Indian Partnership Act, 1932 |
Companies Act, 2013 |
Limited Liability Partnership Act, 2008 |
|
|
Is Registration Requirement |
No |
Compulsory |
Optional |
Compulsory |
Compulsory |
|
|
No of Members |
Only 1 |
Only 1 |
2 – 50 |
2 – 200 |
2 – Unlimited |
|
|
Separate Legal Entity |
No |
Yes |
No |
Yes |
Yes |
|
|
Liability Protection |
Unlimited |
Limited |
Unlimited |
Limited |
Limited |
|
|
Annual Statutory Audit |
Not Compulsory |
Compulsory |
Not Compulsory |
Compulsory |
Dependent |
|
|
Is Ownership Transferability |
No |
No |
No |
Restricted |
Yes |
|
|
Is Uninterrupted Existence |
No |
Yes |
No |
Yes |
Yes |
|
|
Is Foreign Participation |
Not Allowed |
Not Allowed |
Not Allowed |
Allowed |
Allowed |
|
|
Applicable Tax Rates |
Low |
Moderate |
High |
Moderate |
High |
More than 10,000 Lakh Companies incorporated in India
Be the part of corporate with India
A large number of Indian Entrepreneurs are looking forward to the start of the most awaited One Person Company or Incorporation in India. It is seen that there stand to be similar features between the One Person Company and the Private Limited Company. This feature is prominently shown by the Companies Act 2013. After seeing this, one can be definitely sure that there are a number of Indian entrepreneurs who are looking forward to the One Person Company. They show a tremendous amount of interest regarding this issue and want to start a One Person Company as soon as possible. This article will help you to know the various benefits of the One person company and how to incorporate the whole process.
Dr. Jamshed J.Irani in his famous report of Company law stated the concept of the One Person Company. In this way, the whole concept was introduced in 31, May 2005. According to the report, Dr. Irani suggested that with the increasing usage of information technology the government will very soon empower the entrepreneurs. Avery's strong service sector will also lead to this issue. Therefore it is time for the people to develop an idea about developing and participating in the marketplace. An association of persons should be formed and therefore an economic entity consisting of a single person should also be made. This association is known as the One Person Company. A much simpler regime of can also be formed which may lead to the formation of the One Person Company. Simpler associations can be formed by exemptions. In this way, a single entrepreneur does not fritter away his time. Also, energy and resources are saved.
In this way, the “One Person Company” was formed in the Companies Bill of 2013. The bill finally got assent in the Lok Sabha in the year 2012 dated 18 December. The Companies Act was formed finally on 29th August 2013 when they got assent from the President of India.
Benefits of One Person Company
Before the One Person Company was introduced there was only the availability of the Limited Liability and the Continuous Existence. These two together formed the association of persons which was in turn known as the Private Limited Company or Limited Liability Partnership Company. After the One person company was established they got the feature of the Limited Liability and the One Person Company. This is known as an entity with only one member. This, in turn, helps the company to follow the law which helps the person to designate himself in the Memorandum of Association. The person of the death of the subscriber can designate himself to the contract. In this way, an adequate safeguard makes sure that the particular entity continues throughout irrespective of the member to be living or dead.
The process to Register a One Person Company in India
Day one-two
- Review of information and documents provided
- Application for DSC
Day three – four
- Name availability Checking
- MoA, AoA Drafting & other required documents
Day Five-seven
- Apply name reservation application under SPICe
- Filing company registration form
- DIN allotment application
- Application for PAN and TAN of company
Normal Government processing timeline
A general meeting is held by all the companies every year. Other meetings also continue to take place. The meetings should be held within fifteen months duration along with the annual meetings. On the other hand, the One Person Company is not permitted to hold the annual meeting which is also known as an extraordinary meeting. In the meeting, a particular resolution is signed by the single director after looking into the matter for minutes.
It is required by all the companies to prepare a file financial statement which will include the balance sheet, profit and loss account, the cash flow system, and all the required changes in the equity and explanatory notes. One Person Company, on the other hand, does not require such a statement.
Online company formation in India
Rajput Jain and Associates has a online platform i.e. online service place which serves as the online CA Services where person find the qualified professional according to their needs & requirements for start-up registration & also for online company formation in India. Rajput Jain and Associates provides you the choices to answer your query like how to do startup registration? Or company registration process? Or how to avail the services like company Incorporation in India?
