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Airtract Aalia Singh I am an SEO Executive at Corpbiz in Noida.

What is One Person Company Registration? 13 July, 2020   

The one-person company, or commonly known as OPC, is a type of business entity which is owned by a single person, and all the business operations are managed by him/her. One person companies are compared to sole proprietorship firm because of its control and ownership aspects. Only a resident of India is eligible to be a member of a one-person company (OPC).


Summary of One Person Company Registration


Under Section 2(62) of the Companies Act, 2013 one-person company is defined as "A one-person company is a company which is run by an individual who acts as a shareholder and as well as director of the company at the same time. In comparison with a private limited company, a one-person company has low compliance. 

Entrepreneurs start a one-person company rather than a sole proprietorship firm because of the benefits offered by the OPCs.


What is One Person Company?


A one-person company or OPC is a company that can be formed by an individual who is the owner and director of the company. The one-person company was introduced under the Companies Act 2013. One-person company registration is similar to the sole proprietorship firm in the form of a company that gives complete power to one person to run a business and limit its duties and liabilities.


Eligibility Criteria for One Person Company Registration 


For one-person company registration following conditions must be fulfilled:


  • The person starting the company must be an Indian citizen.
  • A person starting the company can be a member of the company.
  • A person starting the company must have stayed in India for at least 182 in the last one year.
  • If the one-person company's turnover exceeds Rs 2 crore, it must be converted into a private limited company within six months.

Relevant Features of One Person Company Registration



  • New Concept

One-person company is a new concept which governed under the Companies Act 2013 by the Ministry of Corporation.


  • One Shareholder

In India, the minimum requirement of shareholders for starting a one-person company is only one. The shareholder must have stayed for 182 days in India in the last year; the person should be an Indian resident.


  • An Immediate Nominee

The one-person company can be started by a single individual. Still, in case of death or incapacity to run that individual's business, there should be a nominee appointed. The nominee appointed must be an Indian citizen. The nominee has to give his/her consent as the one-person company shareholder. A company acts as a separate legal identity under one-person company registration.  


  • One Director

The requirement of the director in a private limited company is a minimum of two members, for a public limited company is seven members. Still, for a one-person company minimum, one director is required, who himself can be the shareholder of the company also. A maximum of 15 directors can be appointed in a one-person company.


  • Fewer Compliances

As compared to a private and public limited company, a one-person company can be formed by a single person, so there are very few compliances to be followed.


  • Separate Legal Entity

One-person company is a separate legal entity similar to private and public limited companies.


  • Limited Liability 

For paying the debt of the company directors, personal assets and personal funds cannot be used as a one-person company that has limited liability under the Companies Act 2013.

 

Documents Required for One Person Company Registration


  • Directors & Nominees ID Proof

Identity proofs like Aadhar Card, PAN Card, Driving License, etc. must be provided by the company's director and nominee.


  • MoA & AoA

Memorandum of Association (MoA) and Articles of Association (AoA) are important documents for a one-person company registration process, and they should be submitted during the process. 


  • Nominees Consent 

As we have discussed earlier, one director and nominee are sufficient to form a one-person company, but in case of any miss happening, the nominee will take place as director of the company. Under form INC-3, the consent of the nominee is filed. The nominee has to provide aadhar card and PAN card for filing consent in the prescribed form.


  • Director and Nominees Affidavit 

In form, INC-9 and DIR-2 companies' director and nominee have to submit their affidavit.


  • Address Proof of the Registered Office 

At the time of one-person company registration, proof of address where the business functions will be performed must be provided. Address proof can be an electricity bill, telephone bill, gas bill, etc. of the previous two months with ownership proof and NOC. In the case of rented property rental agreement will be required with all the required documents.


  • PAN Card

A certified copy of the director and nominees PAN card in the registration process.


  • Photographs

Along with the prescribed form two passport size photographs of director and nominee.


  • DIN & DSC

DSC and DIN are both important documents in one-person company registration. DSC is required for signing online documents. A unique identification number is provided by DIN.


One Person Company Registration Process


One-person company registration is an online process, governed by the Companies Act 2013. Steps to follow for OPC registration:



  • Apply for DSC
DSC can be acquired from nearby agencies; it is used by the company's director for signing documents. Fees for acquiring DSC can vary from agency to agency.

  • Application to Acquire DIN
The director's identification number must be filed along with SPICe+ form; name and address proof of the director is required for the purpose.

  • Name Approval
After acquiring DIN and DSC, the name of the company is decided by the owner. The name is approved by the Ministry of Corporate Affairs. The format for the name of the company is "ABC(OPC) Private Limited."

  • Form Submission
Form INC-32 or SPICe+ from will be used to submit form for one-person company registration with all the required documents and registration fee. SPICe+ form is mandatory for all the companies to obtain Certificate of Incorporation, its available on online portal. 

  • Certificate of Incorporation 
Regulation Authorities will verify all the documents and details provided by the applicant company. After verification of documents, the Registrar of companies will grant a certificate of incorporation containing CIN number.
One-person company registration is not complete without submitting the mentioned documents.

Conclusion
One-person company is a new concept governed by the Companies Act 2013 by the Ministry of Corporation. In comparison with a private limited company, a one-person company has low compliance. Only a resident of India is eligible to be a member of a one-person company (OPC). One-person company registration is similar to the sole proprietorship firm in the form of a company that gives complete power to one person to run a business and limit its duties and liabilities.





One Person Company Registration One Person Company Online Registration OPC Registration OPC Registration in India

Comments 1

Airtract

Dilshana Noushad - very useful informations Thanks for your efforts Aliya Singh...Why don't you write more on PM's new Covid 19 schemes as ... Read More

Dilshana Noushad - very useful informations Thanks for your efforts Aliya Singh...Why don't you write more on PM's new Covid 19 schemes as part of financial boosting packages that would be useful for business people and entrepreneurs ...Thanks Read Less

Date:20-07-2020
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