One Person Company
The newest entry into the different types of company registration allowed in India, OPCs are great for small businesses. Additionally, it became a part of the Companies Act 2013, to help entrepreneurs who wish to run a business single-handedly. Since such a firm type has separate legal status, entrepreneurs get the benefit of liability protection without having to partner with anyone else. Furthermore, since they involve only one individual, this type of firm registration is easy to incorporate and regulate. Moreover, this essentially serves as a combination of the Sole-Proprietorship and Company model of business entities. Additionally, to be eligible for this type of firm registration, the One Person Company must meet the following criteria;
Minimum authorised capital amounting to at least INR 1 Lakh.
Further, an individual must be a natural Indian Citizen and resident
The promoter must appoint a nominee during the incorporation
Additionally, Financial businesses cannot incorporate as an OPC.
Further, should convert to a Private Limited Company if paid-up capital exceeds INR 50 lakhs or turnover exceeds INR 2 crores.
This is another type of business entity wherein a single individual handles the running of the business. However, in this firm type, the company and the owner are considered as a single entity, making them solely responsible for profits and losses. Moreover, since the registration bears the name of the owners, tax filings and accounting reports will also bear the name of the owner, leading to unlimited business liability. As a result, this type of company does not have a separate business registration process.
Section 8 Company
Commonly called a Non-Profit Organisation, such companies mainly work for charitable purposes. Moreover, it involves promoting arts, science, literature, education, caring for the needy, and protecting the environment. Also, all the profits generated by such types of companies are used to achieve these objectives, and the members do not take dividends for themselves. To be eligible for this type of firm registration, the Section-8 Company must meet the following criteria;
Minimum of two shareholders
Minimum of two Directors and they can be shareholders as well
At least one of the Directors must be an Indian resident
No minimum capital requirement
Moreover, must have a registered office address in India