|Author: Mahesh 15 Sep 2016 Member Level: Gold Points : 4 (Rs 4) Voting Score: 0|
One person company is like proprietorship where the liability is on the single person. During the bankruptcy the asset requires to be liquidated. This can be good for those who want to start small shop. Or if they want to start the company with the minimum capital and less liability. And if they don't want the funding and the other formalities. In such case the OPC seems to be a good option. Many are starting the company in this format and going ahead and changing into LLP and PVT Ltd later when they expand or need funding.
In case of the sole proprietorship, the liability may not include the personal assets during the company liquidation. So OPC is where the personal and the professional assets come into the play, the model used makes the difference for assets liquidation. Both sole proprietor and OPC may have trouble getting funding from the VC and also for raising other government funding. It's the reason most of the bootstrappers try to set up the company format instead of the OPC and proprietorship.
1. Both require different PAN, TAN and CST.
2. Both require you to have current account.
3. Both have compliance for tax to be paid each year.
4. Both of them require registering as an entity.
|Author: Venkiteswaran. 15 Sep 2016 Member Level: Diamond Points : 4 (Rs 4) Voting Score: 0|
One Person Company(OPC) is a relatively new development in India. It came into effect after the passing of Companies Act 2013. This is a modified and /or replacement of the previous Companies Act 1956.
OPC is a company with just one shareholder. The main difference between OPC and sole proprietor is that OPC is a legal entity by itself. It is almost at par with a private limited company in status and benefits.The personal assets of the single shareholder are separate from the assets of the One Person Company.
The Companies Act Chapter I, Part II clause 62 says" –"(62)"One Person Company" means a company which has only one person as a member.
As OPC is a separate legal entity and is like a private limited company in many things, it needs a separate PAN card. The same can be applied after complying with all registration/incorporation norms and requisites.
However OPC "cannot be incorporated or converted into a company under section 8 of the Act.". OPC cannot do NBFC(Non banking financial Investment)business activities.
|Author: Kailash Kumar 15 Sep 2016 Member Level: Platinum Points : 2 (Rs 2) Voting Score: 0|
As per section 2(62) of the Companies Act, 2013, 'One Person Company' means a company which has only one person as a member. The author may visit the website of the Ministry of Corporate Affairs, Government of India - http://www.mca.gov.in/ for obtaining detailed information about the OPCs.
For incorporating an OPC, first Form INC-1 is required to be filed for name availability followed by submission of Form INC-2 for incorporation of the OPC within 60 days of filing form INC-1.
Some of the basic differences between an OPC and sole proprietorship entities are as follows -
1. An OPC is a separate legal entity whereas a sole proprietorship entity is not a separate legal entity.
2. OPC has limited liability whereas the later has unlimited liability.
3. In the case of an OPC registration is required whereas in the case of later, registration is not required.
4. In the case of former, perpetual succession applies whereas in the case of later, there is no perpetual succession.
5. In case of OPCs the loans are not the sole responsibility of the owner whereas in the case of later loans are the sole responsibility of the owner.