by Audit Analyst | Aug 1, 2025 | OPC
Eligibility and Declaration An OPC can declare and pay dividends out of its profits after providing for depreciation as per the Companies Act, 2013. Dividends can only be declared if there are sufficient accumulated profits or the current year’s profits. The...
by Audit Analyst | Aug 1, 2025 | OPC
Preparation of Financial Statements An OPC must prepare its annual financial statements by the Companies Act, 2013, and applicable accounting standards. The financial statements must include a Balance Sheet, Profit and Loss Account, and Notes to Accounts. Though a...
by Audit Analyst | Aug 1, 2025 | OPC
Capital from the Sole Member The primary source of capital for an OPC is the investment made by the sole member. This is reflected as paid-up share capital, which the member subscribes to at the time of incorporation or later. The member can inject additional funds...
by Audit Analyst | Aug 1, 2025 | OPC
Eligibility for Loans and Credit An OPC, being a separate legal entity, is eligible to borrow funds in its name. It can apply for business loans, working capital loans, term loans, and overdrafts from banks and financial institutions. Lenders assess the company’s...
by Audit Analyst | Aug 1, 2025 | OPC
No Minimum Capital Mandate The Companies Act, 2013, does not prescribe any minimum paid-up capital requirement for an OPC. An OPC can be incorporated with any amount of capital, even as low as ₹1. This provides flexibility and accessibility for small entrepreneurs and...
