In this article, we will discuss something that’s a bit convenient for those who want to earn through a business. So, if you are planning to start a business solely then something we can suggest you would be a one person company. I suggest starting a one person company because of the convenience it provides and the level of complete control you can have over your business activities and operations.
One person company is a fairly new concept that has recently been introduced through the company’s act of 2013. The idea behind the concept was to support the new entrepreneurs with their start-ups with no mandatory requirement of more than one person to start their company. They may easily incorporate a single person economic entity. Before the existence of this one person company concept, there used to be the requirement of at least two directors and two members for incorporating a private limited company while there was a requirement of three directors and seven members for incorporating a public limited company. Now, this step of collecting more partners for you is no longer necessary. Isn’t that a wonderful advantage?
But I must mention that one person company has its limitations too. Some of the limitations of a one person company are that you must also have a nominee to take over your duties in case, you are no longer in a condition to operate the activities of your business. In any case, if you become disabled, then your one person company will be required to be converted into a private limited company.
There is also a condition that once your annual turnover exceeds the amount of two crore rupees, then it will need to get audited for its financial statements with the ministry of corporate affairs or as it’s known for short as MCA. Now, this was all about what a one person company is and its limitations and basic benefits. Let’s look at now why you must be getting a one person company registration.
Why should you get one person company registration?
Following are the reasons why you must opt for one person company registration:-
- You will become the single promoter of your one person company – this is the only type of company that you can have, with just you as the member and director both and only person solely responsible and running all the operations by yourself with complete control over all the activities. You will also have limited liability protection to it in India because your one person company is an entity itself having its own properties, investments and liabilities. Also, you can transfer your rights easily.
- One person company has its own uninterrupted existence which means a perpetual succession. This remains so until it is ever legally dissolved. The company being its own entity will continue to exist as itself irrespective the changes in members, deaths or departure of its directors.
- The one person company has borrowing capacity that is it can easily borrow land, loans and make investments in its name. Though the company can’t issue any kind of equity security all because it can be owned by only one person.
- The ownership can easily be transferred to another person whenever the need arises. The procedure is usually done by transferring and altering the shareholder directorship and nominee’s information.
- The company being its own legal entity has rights like owning its own property.
The required documents for one person company registration.
- Identity proof:- the documents to prove your identity and business address. These documents will include your Aadhar card, voter ID or a copy of your passport. Apart from this your PAN, residential address proof like utility bills and bank account passbook etc.
- Registered office proof:- just like all the companies you too must have a registered office. And there must be a proof for it. The documents required for that would be a copy of the ownership of the property if you own it along with the recent utility bills like electricity and water bills. Or if you have your office on a rented property, you’d be required to submit a copy of the rental agreement along with the NOC from the landlord of the property.
Now let’s get to the one person company registration process for your one person company.
Avail the One Person Company Registration Process with the Help Of Experts
- Start with getting a DSC or a digital signature from a government recognised authority. Along with that also get a DIN which is short for the director identification number, also keep your documents ready with an application for the one person company registration.
- Now get a name approval. Your one person company name will be approved with subject to the availability and the guidelines that are laid down by the MCA.
- Now the final step is of getting your one person company registration done. You need to submit the application with attached documents and details of the name approval and you will be granted your one person company registration certificate.
Our Experts at Swarit Advisors are constantly available to help you in any circumstances all you have to do is to dial our helpline number and we respond immediately with perfect solutions.
