One Person Company Registration Rules and Regulation
The companies Act 2013 completely revolutionized by introducing several new concepts that didn’t exist earlier. One such game changer was introduction known as One Person Company. This led to the recognition of the completely new way of starting business. It’s not only support to the entrepreneurs but also participate in the growth of the Indian economy. The biggest advantage of One Person Company, it can be run by the single person, while there have to be at least 2 members to incorporate LLP. In a simple word, only one person is required to for the One Person Company.
Definition of the One Person Company:
Section 2(62) of the companies act defines a One Person Company as a company that has only one member. Furthermore, members of the company are nothing but subscribers to its memorandum of the association, or its shareholders. So, OPC is effectively a company that has only one shareholder as the member.
Such companies are generally created where there is only one founder for the business. In India, there are many entrepreneurs who want to open a business but due to lack of shareholders and members they unable to do so. In order to overcome this issue, Indian Government has put the concept of the One Person Company in the Company act 2013.
Popularity of OPC in India:
One Person company registration is gaining popularity in India in recent times. It’s turning out to be one most sought after business registration among many entrepreneurs. It is such a unique concept which requires less paper work and minimal formalities when compare to other business entities. So, if you are thinking to start a business can go ahead with OPC registration without having any second thought.
Registration OPC with Unilex Business Consultant is a hassle-free process. Here, the consultant are very attentive and undertake all kinds of registration of business entities. If you have a passion of becoming one of the renowned entrepreneurs of India, choose OPC as a business entity and take your career to the next level.
Silent Features of OPC:
- Private Company: Section 1(3) of the companies act says that a single person can form a company for any lawful purpose. It further describes OPC as the private entity.
- Single Member: OPC can only one member as its shareholder, unlike other private companies.
- Nominee: A unique feature of OPCs that separate it forms other kinds of companies is that the sole member of the company has to mention a nominee while registering a company.
- No Perpetual Succession: Since there is only one member in an OPC, his death will result in the nominee of choosing or rejecting to become its sole member.
- Minimum one director: OPCs need to have a minimum one director or maximum 15 directors.
- No Minimum paid up share capital: Companies Act 2013, has not prescribed any amount as minimum paid up capital for OPCs.
- Special Privilege: OPCs enjoy several privilege and exemptions under the companies Act that other kinds of companies do not possess.
Requisite Documents for a One PersonCompany Registration:
Following are the documents for the One Person Company Registration:
Documents from Director / Shareholder /Nominee
A. Identity Proof
1) Permanent Account Number (PAN) Card
2) Aadhaar Card / Passport / Driving License / Voter Identity Card
B. Address Proof
1) Telephone Bill / Mobile Bill
2) Electricity Bill / Water Bill
3) Bank Statement /Bank Passbook with latest transactions
(Any one of the Document not older than 2 months)
C. Passport size Photographs – 3 each
- Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months
- If the documents are not in than English, it should be translated to English
All the Copies of documents must be Self Attested by the applicant
2. Documents to be Signed by all DIRECTOR(S)
1) Consent to Act as Director: Form DIR-2
2) Details for DIN
3) Declaration of DIN (If DIN is allotted already)
To be signed by the all the Directors
3. Documents to be Signed by Shareholder
1) Application for Digital Signature Certificate (DSC)
2) Affidavit by Subscribers & Director: INC-9
To be signed by the Shareholder
4. Documents to be Signed by Nominee Shareholder
1) Details of Nominee Shareholder
2) Consent by the Nomination of Shareholder – Form INC-3
To be signed by the Nominee Shareholder
5.Documents from Company / LLP / Trademark Owner, if any
1) Board Resolution / Formal authorisation for use of Name / Trademark
2) Authorisation for execution Documents from Company / LLP
To be signed concerned on Letter head
6. Registered Office – Address
No-Objection letter from the Owner of Address to use the address as the Registered Office of the Company.
2.Address Proof - In the name of the Owner of Addres
a. Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months); Or
b. Tax Paid Receipt or Copy of Registered Sale Deed
Incorporation Process of a OPC
The process for incorporation of a OPC can be divided into four steps as under:DS
Obtaining Digital Signature
Obtaining Name Reservation
Obtaining Digital Signature
Digital signature certificate must be obtained for the sole promoter and the nominee for processing the incorporation. Application for DSC would require passport size photos of the applicant, identity proof and address proof.
Obtaining Director Identification Number
Once Digital Signature is obtained, DIN must be obtained for the promoter and nominee. No additional documents would be required at this steps.
Once the Digital Signature is obtained, application for name reservation can be submitted to the MCA. Upto six name options can be submitted and name applications are processed by the MCA in 24-72 hours. The name suggested must conform to the naming standards and the name of the OPC must end or include the words (OPC).
Preparing MOA: File Form SPICe MOA and Form SPICe AOA with the Registrar pursuant to section 4 and 5 of Companies Act, 2013 respectively. Further, the MOA of an OPC shall contain an additional clause i.e. nominee clause.
Uploading Process: Login with ID and Password From SPICE MOA and AOA
Set Payment: After filling documentation online, we need to make the payment of ROC fees stamp and duty electronically which is based upon the Authorized Capital of the Company.
Post Incorporation Formalities: The compliance formalities of the OPC is similar to that private limited. In case notice of situation related to the registered office not filled during incorporation, it must be filed after incorporation within 30 days
I hope, you may understand the registration procedure of OPC. If you are looking for the OPC business entity, you can take the support of Unilex Business Consultant. Here, the professional will help you regarding registration procedure of OPC and make your business entity legal work hassle-free. Feel free to contact us anytime for any help regarding OPC registration.