How much Capital is required to Incorporate an OPC?
An OPC can be Incorporated with any amount of Capital. However, for issuing minimum shares worth Rs. 1 lakh fees must be paid to the Government (Authorized Capital fee) during the incorporation of an OPC.
How long it will take to incorporate an OPC?
An OPC can be Incorporated with any amount of Capital. However, for issuing minimum shares worth Rs. 1 lakh fees must be paid to the Government (Authorized Capital fee) during the incorporation of an OPC.
OPCs have the following benefits
When we talk about incorporation, a One-Person Company has few restrictions. Before initiating the registration process understand the eligibility criteria of the registration process as per the Companies Act.
Here is the process for Incorporating an OPC:
If the OPC conversion process is not followed properly and on time, then the OPC officer of the OPC will have to pay a penalty of 5000 Rs. It can be further increased worth Rs.500every day with such irresponsible actions:
Dr. Jamshed J Irani has introduced the One Person Company concept in India in his report on Company Law on 31 May 2005. He stated that with the growing usage of information technology and an increase in the strong service sector, the government has to encourage entrepreneurs with innovative ideas. Dr. Jamshed suggested that a person should form a specific identity with his unique idea as One Person Company, instead of merging with an association.
An entity should be exempted from all the formalities, so an entrepreneur can focus on creating value for the marketplace then dissipating his/her energy in the procedural matters.
Hence, One Person Company was introduced in 2013 in the Companies Bill with the approval of Lokh Saba in December 2012 and by Rajya Sabha in August 2013.
After getting approval from the President, it has become the Companies Act 2013.
Here are some benefits of One Person Company:
A nominee is a member who becomes a member of the company in case of the demise of the owner or any other unfortunate event.
Authorized Capital is the number of shares of the company that can be issued to the shareholders. To issue shares, a company has to pay a certain amount of authorized capital fee to the government.
For speedy incorporation, make sure your business has a unique name and all the required documents for the incorporation process.
Dormant Company meaning an inactive company. However, a dormant company is a great opportunity to start a company for a future project without any significant accounting transactions.