One Person Company: How to Choose a Right Name for Your OPC?by Ananya Nair Accounting and Legal Services
According to the section 2(62) of Companies Act, 2013 a single person can start one person company (OPC) in India. It is a separate legal entity that offers legal safeguard to the shareholders in the form of limited liability. All the provisions that are valid to private companies are also relevant to OPC.
Why you should register your one person company?
Registering your one person company can provide you bunch of benefits –
- Legal protection to the company members with limited liability protection
- Separate legal entity
- Uninterrupted service even after death or change of the owner
- Transfer of shares is not permitted in OPC
- Single owner has the full control over all the decisions making and implementation
- Money can be borrowed from lenders
- In OPC comparatively less paper works are required than other businesses
Significance of a right name of your OPC
Suggesting a name for the proposed company is one of the vital steps of OPC registration through online. You’re required to apply through E form INC 1 and needs to submit the same to registrar of companies for integration. Choosing the right name is quite significant for your one person company. The name of the company will create the first impression towards buyers, suppliers and stakeholders. The name carries the brand value of your business. So you must choose it very carefully.
You don’t need to be highly creative for choosing the name of your OPC. A simple yet catchy name can attract business towards your company. You must consider the below factors before selecting an appropriate name for your company –
Check the availability of name – You need to start with checking the availability of the name of your one person company. There are several online tools available for checking the availability of company name. You’re not allowed to use a name that has already been used by some other company.
Simple yet catchy name – A simple name is easy to remember. The name must be catchy and relevant to your business as well, so that right people could be attracted towards your one person company. The name should sound good, easy to pronounce and recall.
Keep the uniqueness – You can definitely follow your competitors to get the idea about the type and logic of choosing their company names. But you must always avoid choosing a name that is somehow similar to any of your competitors. Keeping originality is the key factor. Always try to keep your own identity and later that’ll value your brand image.
Avoid using any person’s name - Many a times you’ll found companies that come with owner’s name. This is not a good practice. If any time the concerned person would leave then you might have to rename your company.
Avoid abusive wordings in name – The name of your OPC should avoid using any abusive words that could be against your customers believes and emotions. It is strictly prohibited to use any wording that is offensive for any group of people or religion etc.
Think big and choose the name – It is always better to choose a name that is not an area specific. Because being a business owner you’ll definitely try to expand your business. Hence select any name that works great for expanded locations, not only an area specific.
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Created on Dec 31st 2019 06:13. Viewed 550 times.