The nation is getting ready for GST. It is expected that business would be easy as there would be no state boundaries for businesses. No C forms. The whole nation would be a market for any manufacturer or trader. There is expectation that new entrepreneurs will set up companies. Previously, if company had to be formed, minimum two people were required. That would form a Limited Liability Partnership firm. There was also a option of Pvt Ltd company. If people had to go single, the option was Proprietorship. Proprietorship though had one disadvantage. Unlike LLP or Pvt Ltd, where the liability is limited to company assets, a Proprietor is liable for the whole liabilities along with his personal assets.
But now, it will be easy to set up your dream company alone. This comes after the Company Act 2013 came into force. You can now set up One Person Company (OPC). OPC has a limited liability just like LLP and has a separate identity from that of the owner. The liabilities are also separate. Owner is not affected by the liabilities or credit default of a company. OPC is also exempted from AGMs, General Meetings & Extraordinary General Meetings. They have relatively less compliance as compared to Private Limited & Public Limited. Even a running Proprietorship company can be converted to OPC.
If you are itching to set up a OPC, then the procedure is not so difficult. First you have to get a Digital Signature Certificate (DSC) and a Director's Identification Number (DIN). After you have done so think about your company name and check with MCA (Ministry of Corporate Affairs) about the availability of the name. You can file the AOA (Article of Association) OR MoA (Memorandum of Association) with the ROC (Registrar of Companies). Make Payments & stamp duty payments to MCA and get the Certificate of Incorporation.
If you are not comfortable with doing it yourself you must take services of a Company Secretary. And I highly recommend that.
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