One Person Company
What is OPC (One Person Company) registration?
One Person Company in India is a new concept that has been introduced with the Company’s Act 2013. In India, a single person can form a one-person company. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business, then he or she should only opt for a sole proprietorship.
According to Section 2 (62) of the Company’s Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company.
A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.
Major reasons for incorporating an OPC in India
What are the advantages of establishing an OPC in India?
Distinct legal entity status: In India, an OPC registration is given the status of a separate legal entity. In this case, the member’s obligation is restricted to his or her shares, and he or she is not personally accountable for the losses incurred.
Easy to raise cash: Because a One Person Company is a separate legal entity, raising funds from venture capitalists, angel investors, incubators, and other sources is simple. One-person companies are more likely to be approved for financing than sole proprietorships. It is quite simple to get cash.
Fewer Compliances: When it comes to compliances under the Companies Act of 2013, the OPC has several exemptions. The Company Secretary is not required to sign the books of accounts or annual returns, which must be signed solely by the director.
Easy Incorporation: The incorporation of an OPC is simple because just one member and one nominee are necessary. A member can also be a director. The minimum paid-up capital required to form an OPC in India is Rs.1 lakh. As a result, forming a One Person Company is simpler than forming other types of businesses.
Easier to handle: OPCs are simpler to manage since they may be set up and maintained by a single person. Making a selection is simple and quick. As a result, running a business is simple because there will be no internal disagreement or delays.
Permanent succession: – requires the appointment of a Nominee. When a member dies, the candidate takes over as the company’s president.
Documents needed to register with the OPC
What papers are needed to register for an OPC in India?
An applicant must provide the following papers to register a One Person Company in India:
- PAN Card
- Aadhar Card
- Photo ( Of Director and Nominee)
- Latest Bank statement or any bill that bears the name of the Director or the nominee
- Latest Bill for the office address.
How to obtain OPC registration?
DSC application form: The following papers must be presented in order to get the Digital Signature Certificate for the prospective Director:
Aadhar Card, PAN Card, Photo, Email Id, and Phone Number are all acceptable forms of identification.
Application for the Director Identification Number:
Once the DSC has been received, the next step is to fill out the SPICe Form and submit it together with the prospective Director’s name and address proof. For existing businesses, Form DIR 3 is the sole alternative available. The applicant is no longer needed to complete Form DIR 3 separately as of January 2018. DIR 3 can be used for up to three Directors in the SPICe Form.
Name Approval Application:
After deciding on an OPC’s name, the following step is to choose a name. In the SPICe+ 32 application, the firm name might be authorised. If the first name is rejected, a new name can be submitted by filling out a new SPICe+ Form.
We go on to the next phase of drafting the company’s MOA and AOA once the name has been authorised by the MCA.
MOA and AOA preparation
The Memorandum of Association and Articles of Association must be prepared and submitted to the ROC.
The Company’s aims are outlined in the Memorandum of Association. The MOA specifies the type of business for which the company will be formed.
The company’s operating laws are laid forth in the Articles of Association.
Because there is only one Director and one member, a Nominee must be selected in the event that the promoter becomes incapacitated or dies. In Form INC 3, the Nominee’s permission will be obtained along with the PAN and Aadhar card.
Forms 9 and DIR 2 will be used to record the prospective Director’s declaration and consent.
Forms to be filed with MCA: All papers will be linked to the SPICe Form, and the MoA and AoA will be posted for approval on the site.
Certificate of Incorporation: After verification, the Registrar of Companies will issue the Certificate of Incorporation, and the firm can begin.