One Person Company Registration in India
One person company registration is a new concept introduced under companies act 2013, in which only a single person can form a company instead of having minimum 2 persons for a private company registration and 3 for a public company registration.There are several advantages of One Person Company (OPC) registration and its benefits. Now in OPC, a single person will be the only shareholder of the company, who can be director also (although a OPC can have maximum of 15 Directors). The procedure of incorporation of a One Person Company (OPC) is comparatively easier and less complex than other entities formation. Only requirement is to make a nominee apart from the shareholder of the company.
Procedure for formation of One Person Company in India
- Preparation of Digital Signature Certificate (DSC) of the Proposed Director.
- Apply for Director Identification Number (DIN) of the proposed Director, DIN is filed in e form DIR-3 with attested copy of PAN and Address proof of the applicant as attachment.
- After obtaining the DIN, the name of the proposed company is applied in form INC -1. In this form you can give maximum of 6 names, which you desire to get for your company.
- After getting the name approved by the Registrar of Companies (ROC), companies Memorandum of Association (MOA) and Articles of Association (AOA) is drafted as per the proposed business activities of the Company in e form INC 33 and INC 34 respectively.
- Next and final step is to prepare and file e form INC 32 (spice form) with the following attachments:
- PAN card copy of the applicant
- Address proof of the applicant (electricity bill, telephone bill, mobile bill, bank statement)
- Consent of the nominee in e form INC 3
- Address proof of the registered office of the company (Electricity bill, House tax receipt, water bill, gas bill)
- Consent of the Director in form DIR 2
- INC 9 and Affidavit of the subscriber and Directors.
All the three forms i.e. INC 32, INC 33 and INC 34 are uploaded as linked forms in the MCA. As per the latest amendment of the ministry, both the PAN and TAN gets applied along with the company incorporation form i.e. INC 32 and generated with the certificate of incorporation (COI) of the Company. Time taken for incorporation of the One Person Company (OPC) usually takes between 7 to 10 working days (subject to government processing time).
Benefits of One Person Company (OPC) Registration in India
The incorporation of OPC is less costly and complex as compared to other entities like private company and public company
Less number of compliances to be done under companies act 2013, as various provisions and sections of the act are not applicable on the OPC, such as provisions related to holding of mandatory general meetings, holding Annual General Meeting (AGM), conducting minimum Board Meetings throughout the financial year, mandatory rotation of auditors, preparation of cash flow statements and many more.
As there is a sole owner, no chances of dispute and fraud between the management.
Doing business through proprietorship always have unlimited liability, but if such a proprietor is doing business through OPC, then his liability is limited.
Banks and financial institutions prefer a corporate to lend money rather than proprietor and partnership firms.
If your business is growing and funding is required, then you can also convert your OPC to private Limited company
Minimum requirements for One Person Company (OPC) registration:
Minimum 1 shareholder
Minimum 1 Director
Director must be resident of India
Director and Shareholder could be same person
1 nominee person to be appointed
Letter OPC to be suffixed in company’s name