One Person Company Registration is introduced in Companies act, 2013 considered as one of the modern forms of business solely for the one person-one owner of the company. The main reason for such step is to promote the entrepreneurs and micro enterprises having turnover less likely than 2 crores. It should be noted that the director or the nominee must be Indian resident. One-person company can be formed with only single person, being director as well as shareholder of the company. One-person company registration must be registered under the guideline stated by the ministry of Corporate affairs (MCA).
If any company crosses turnover of Rs. 2 crore and gains a fund of Rs 50 lakh and over, must be transformed into a private limited company or public limited company within six months of such development. Benefit given to the sole owner is the limited liability, where personal property of the owner is always safe no matter how much debt of the business is. Unlike sole proprietorship, One-person Company does not end with the death of owner, passes on to the nominees and continue to exist. In order to register the one-person company, all the businesses must submit income tax returns, preserve books of accounts, obey required statutory audits.