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One Person Company Registration
The introduction of OPC in the legal system is a move that would encourage corporatization of micro businesses and entrepreneurship with a simpler legal regime so that the small entrepreneur is not forced to devote considerable time, energy and resources on complex legal compliances. This will not only enable individual capabilities to contribute economic growth, but also generate employment opportunity. With the implementation of the Companies Act, 2013, a single national person can constitute a Company, under the One Person Company (OPC) concept
What is a One Person Company (OPC)?
As per section 2(62) of the Companies Act, 2013, “One Person Company” means a company which has only one person as a member.
With the passage of time, the OPC mode of business organization is all set to become the most preferred form of business organization. The benefits arising from this novel concept are many, to name a few –
- Minimal paperwork and less number of compliances
- Ability to form a separate legal entity with just one member
- Provision for conversion to other types of legal entities by the introduction of more members and amendments in the Memorandum of Association.
The One Person Company concept would hold a bright future for small traders, entrepreneurs, artisans, other service providers with low risk-taking capacity. The OPC would act as a launchpad for such entrepreneurs to showcase their capabilities in the global arena. The foreign joint venture capitalists are going to find it quite feasible to deal with a sole entrepreneur rather than having to even it out with numerous shareholders/directors leading to chances of discrepancy in ideas, concepts, and understanding of the business.
Registrationseva has a top score of registering thousands of One Person Company in India. Registrationsevais working round the clock to serve our clients best consultancy and legal services.
Not just one or two but there are numerous reasons why you should go for One Person Company registration. Let’s find out what they are:
- Personal freedom that allows the Professional, skilled person to adopt the business of his choice.
- Personality driven passion and implementation of a business plan.
- The desire of the entrepreneurial person to take an extra risk and willingness to take additional responsibility.
- Personal commitment to the business which is the sole idea of the person and close to his heart.
- It is run by individuals yet OPCs are a separate legal entity similar to that of any registered corporate.
- A-One Person Company is incorporated as a private limited company.
- Unlike a private limited or public limited company (listed or unlisted), OPCs need not bother too much about compliances.
Types of One Person Company
- A company limited by shares or;
- A company limited by guarantee or;
- An unlimited company.
Minimum Requirements for registering an OPC in India
- Minimum One Director
- One Nominee is compulsory
- One Member
- One shareholder
Before you proceed to OPC registration, it’s quite essential to keep the following documents handy:
- Scanned copy of PAN Card
- Copy of passport/voter ID/Driving License etc.
- Latest telephone Bill/ bank statement/Electricity Bill etc.
- Passport size photograph etc.
- Consent in written form from Nominee
For the registered office
- Copy of notarized Rent agreement
- NOC obtained from the owner of the property where applicable.
- Any Utility bill of the Registered Office Address
- Others if required.
Basic Process of incorporation of One Person Company in India
- Obtain digital signature of the proposed director
Since the process is completely online, hence all those authorised signatories/directors who needs to sign the online incorporation documents must apply for Digital Signature Certificate (DSC)
- Application for Name approval of the Company via RUN:
An application for reservation of name shall be made by using Form RUN (Reserve Unique Name) There are no attachments required to be mandatorily attached while filing in RUN however, it is recommended to draft a submission letter explaining therein the business objects of the proposed Company. The name once allotted will be valid for a period of 20 days.
- Fill INC-3 form online
Details of the nominee as required shall be filled in Form INC-3 and after check form, take the print out of the form and sign it. The same is required to be enclosed as an attachment in eForm INC 32 (SPICe).
- File online incorporation forms along with attachments
For Incorporation, Form INC. 32, e-M0A, e-AOA and AGILE is to be filed with the Registrar along with the following attachments:
- Declaration by all the proposed member/Directors/nominee in Form INC. 9
- Consent to act as Director in Form DIR. 2
- Copy of PAN of all the proposed member/Directors/nominee
- Copy of driving license/passport/voter ID card of all the proposed member/Directors/nominee
- Copy of bank statement/utility bill (not older than two months) of all the proposed member/Directors/nominee
- NOC from the owner of proposed registered office along with utility bill (not older than two months)
- Issuance of Certification of Incorporation by the Department
After all the requirements, ROC shall issue a certificate of incorporation post which you can launch your business.
How can we help in getting registration?
Our services include the following:
01. What is a One Person Company?
The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a company by allowing them to create a single person entity. One of the biggest advantages of a OPC is that there can be only one member in an OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership. Similar to a Company, a OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.
Though a One Person Entity allows a single Entrepreneur to run a business with Limited Liability protection, a OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rupees Two crores and must file audited financial statements with the Ministry of Corporate Affairs (MCA) at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation. Registration SEVA can help to register a One Person Company (OPC) in India.
02. How many shareholders are required to register a One Person Company (OPC)?
Only One shareholders required to register a One Person Company.
03. How many directors are required in One Person Company?
Minimum of One directors are required to register a One Person Company and the maximum number cannot exceed beyond fifteen.
04. How much money do I need to start a One Person Company?
In case of One Person Company, no minimum capital required.
05. I am a foreigner. Am I eligible to act as a member of an OPC?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one financial year.
06. Who cannot form a One Person Company?
- A minor
- Foreign citizen
- Non Resident
- Any person incapacitated by contract
0 7. A person can be a member in how many OPCs?
A person can be member in only one OPC.
0 .8 Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC also.
0 .9 What if a member of an OPC becomes a member in another OPC by virtue of being a nominee in that other OPC?
Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days.
10. What happens in case of death of member of the company?
If the member dies, the nominee take on the affairs of the company and within 15 days of time, the company has to intimate the Registrar of Companies by filing Form INC-4 with prescribed fee.
11. Whether it is compulsory to mention the name of the nominee in MOA?
Yes, the name of the person nominated shall be mentioned in the memorandum of One Person Company and his consent must be taken in Form INC-3.
12. Is it mandatory to intimate withdrawal of consent by nominee to the Company?
The person nominated by the subscriber or member of a One Person Company may, withdraw his consent by giving a notice in writing to such sole member and to the One Person Company.
13. Is it mandatory to mention the word OPC in all the documents?
The word OPC shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved.
14. Can I register OPC on my residential address?
Yes, you can register a company in any part of India which can be Residential or Commercial.
15. What is the biggest advantage of forming an OPC?
The greatest advantage of OPC is that the person and the entity are separate and it only needs one member to form the entity.
16. What mandatory compliances OPC needs to follow?
Few of the basic mandatory compliance which an OPC needs to follow are: –
- Maintenance of proper books of accounts.
- Statutory audit of Financial Statements.
- At least one Board Meeting in each half of the calendar year and the time gap between the two Board Meetings should not be less than 90 days.
- Filing of business income tax returns every year before 30th September.
- Filing of Financial Statements in Form AOC-4 and ROC Annual Return in Form MGT 7.
17. Why get my company registration through Registrationseva?
- We have an in-house expert team of lawyers/ Chartered accountant/ Company secretaries and experienced professionals from all over India.
- Our price is the most reasonable in India
- We focus on building a long-term relationship rather than one-time service
- Our maximum clients are satisfied with our services.