Top 5 Reasons You Are Eligible for an OPC in Chennai!

An One Person Company (OPC) is a unique type of business structure which allows one person to run as a private limited company that has the eligibility of a limited liability. FilingPoint.com is a reputable service provider who assists entrepreneurs to complete their OPC Registration in Chennai to ensure an easy and smooth process. If you’re looking to establish your own OPC in Chennai you must meet certain eligibility requirements and know the rules. This guide will provide all the information you must know about starting the OPC within Chennai.

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Benefits of Registering an OPC in Chennai

• Limit Liability Insurance: Personal property of the proprietor is shielded from the business’s liabilities.
• A Single Ownership is when the owner has complete control over business choices.
• Simple Compliance: The OPCs are less liable to requirements for compliance compared to private limited firms.
• Greater Credibility More Credibility: A business with an OPC is considered to be more trustworthy than a sole proprietorship.
• Tax benefits: OPCs can avail tax deductions and exemptions that are available to private limited companies.

The First Ever OPC Company in India – Who Started It?

The first One Person Company (OPC) in India was Vijay Corporate Solutions OPC Private Limited, incorporated by Mr. Vijay Daradah on April 28, 2014. This marked a historic moment in India’s corporate landscape after the introduction of OPCs under the Companies Act, 2013. The concept of OPCs was introduced to empower solo entrepreneurs, allowing them to enjoy the benefits of a private limited company with limited liability and a separate legal entity while maintaining full control over their business. This innovation opened new doors for startups and individuals looking to formalize their ventures with ease.

Minimum Authorised Capital for OPC

The most crucial aspect to register OPC is that the primary requirement for registering an OPC is the authorized capital requirement. There isn’t a required minimum capital requirement that must be met in the process of OPC registration. However it is common for an OPC typically begins with a capital limit of the amount of Rs. 1 lakh. Entrepreneurs can increase their capital in the event of expansion.

Appointment of a Nominee During Incorporation

One of the most important requirements to be met for OPC registration involves the designation of nominees. The sole proprietor must nominate one of the nominees when they register an OPC. The nominee will be able to take over the business in the event that the sole proprietor is unable to oversee the company due to incapacity or death. The nominee must have the status of an Indian citizen and a resident of India.

Can an OPC be Registered as a Startup?

Many entrepreneurs wonder if an OPC can be considered a startup. The answer is yes. An OPC can be registered under the Startup India initiative, which allows it to enjoy various benefits. These include tax exemptions, funding support, and government incentives to help the business grow.

Turnover Limit for OPC

OPCs have specific turnover restrictions. An OPC cannot exceed a turnover of Rs. 2 crores in any financial year. If the turnover crosses this limit, the OPC must be converted into a private limited company to continue its operations.

Can I Hire Employees in an OPC?

One of the main concerns concern whether or not an OPC is able to hire employees. Yes An OPC can employ workers and increase its operations. The owner may also choose executives and directors to help to manage the company effectively.

Who is Not Allowed to Register an OPC?

Certain individuals and entities are not allowed to form an OPC. Minors (under 18 years old) cannot register an OPC. Foreign citizens and NRIs are also ineligible. Additionally, companies and LLPs cannot form an OPC, as it is meant for solo entrepreneurs. A person who already owns an OPC cannot register a second OPC.

Step-by-Step Process to Register an OPC

FilingPoint.com makes OPC registration in Chennai easy and hassle-free. Here’s how we help:

1. Name Approval – Check and reserve your company name on the MCA portal.
2. Digital Signature (DSC) & DIN – Get DSC and apply for the Director Identification Number.
3. Draft MoA & AoA – Prepare essential company documents.
4. Nominee Appointment – Appoint a nominee and obtain consent .
5. Filing & Incorporation – Submit the required documents and get the Certificate of Incorporation.
6. PAN, TAN & Bank Account – Apply for tax registrations and open a company bank account.
7. Post-Incorporation Compliance – GST registration, annual filings, and legal compliance.

Let FilingPoint.com handle the process while you focus on your business!

After registering an OPC, the company must follow certain compliance requirements, including:

• Annual returns must be filed with MCA. Ministry of Corporate Affairs (MCA).
• Maintaining correct financial records and keeping books of accounts.
• Tax returns for income as well as GST returns (if appropriate).
• Meetings of the board if the board is expanded with additional directors.

Restrictions and Disadvantages of OPC

However, despite its advantages, OPCs have certain restrictions and drawbacks:

• An OPC is not able to engage in non-banking financial services like investment in securities or loans.
• It isn’t able to issue shares the public or list on stock exchanges.
• Capital funding is limited: As there is only one shareholder, obtaining external capital is a challenge.
• Costs of compliance are higher The company is required to follow the same rules as private limited companies.
• Conversions are mandatory if turnover exceeds the threshold of Rs. 2 crores or the capital paid up exceeds 50 lakhs, or if capital paid-up exceeds Rs. 50 lakhs, conversion into the private limited company is necessary.
• It cannot be converted into a public or private limited company within two years of incorporation unless its turnover exceeds Rs. 2 crores.

Comparison: OPC vs Private Limited Company

Conclusion

FilingPoint.com is a trusted service provider that helps entrepreneurs register and manage their One Person Companies (OPCs) in Chennai. Their expert team ensures a smooth registration process and hassle-free compliance with legal requirements.

Starting an OPC in Chennai is a great choice for solo entrepreneurs looking for a legally recognized business with limited liability. However, it comes with certain rules and responsibilities. By understanding the eligibility criteria and legal requirements, you can make an informed decision and successfully establish your One Person Company.you make an informed decision and successfully register your One Person Company.