One Person Company (OPC) was an innovative concept established through the Companies Act of 2013. An OPC is a business formed by one person, as its title implies. The firm is founded and run by one person. An OPC possesses all the traits of a business, including continuous ownership, restricted liability, and an independent legal body. Before the Companies Act of 2013 entered into operation, only two people could set up a corporation. If a person desired to start a business, he or she was limited to selecting a business that was solely owned since a corporation needs to be founded with a minimum of two executives and two shareholders.
A private company needs a minimum of two directors and two members, but a publicly traded business must have a minimum of three directors and seven shareholders. Previously, only a group of people were able to create a company. A company can be set up with only 1 Director and 1 Member, as per Section 2(62) of the Company Act of 2013 (the Act). An individual could serve as both a member and a director. The compliance standards are not as rigorous as they would be for a private corporation under that kind of organization. Therefore, a one-person company is a firm which combines the characteristics of a corporation and the perks of a small business and can be formed by a single person, who can be a citizen or an NRI.
Steps included in OPC Registration
Step 1: Request DSC
The first step in opc registration is to get the recommended Director’s Digital Signature Certificate (DSC), which necessary documents as follows:
- Address verification
- Aadhaar ID
- PAN card.
- Email Address
- Contact information
Step 2: Request a DIN
Collecting the Director Identification Number (DIN) from the prospective Director in the SPICe+ Form alongside the Director’s name and address evidence is the subsequent step after creating the Digital Signature Certificate (DSC). The option is only accessible to firms that already exist (Form DIR-3). It indicates that beginning in the first month of the year, the applicant does not have to submit Form DIR-3 individually. The SPICe+ form makes it possible to apply DIN for a maximum of three directors.
Step 3: File an identity approval application
Making the decision on the Company’s name is the subsequent stage in establishing an OPC. The Company will come to be known by the name “XYZ (OPC) Private Limited”.
In the Form SPICe+ 32 implementation, a username might be authorized. In the Form SPICe+ 32 application, just one name of choice can be included and listed along with the justification for preserving that name. Another name may be provided by submitting a second Form SPICe+ 32 petition if the first one is denied.
We proceed to the following phase when the MCA gives its approval for the name.
Step 4: The Required Paperwork
For submission to the ROC, we have to gather the following documents:
- The Company’s goals are set forth in the Memorandum of Association (MoA), and it also identifies the purpose for which it will be created.
- The bylaws that will govern how the firm operates are outlined in the Articles of Association (AoA).
- Since there is only one Director and one Member, it is necessary to nominate a candidate on their behalf to ensure that in the event that the Director becomes unable to fulfil his responsibilities due to incapacity or death, the nominee will act in his stead. They will also need his PAN card and Aadhar card, as well as his written agreement in Form INC-3.
- Along with evidence of ownership and an owner’s no objection statement, provide documentation of the prospective Company’s registered office.
- Forms INC -9 and DIR -2 each include the recommended Director’s Declaration and Consent.
- A statement issued by the expert attesting to the fact that all regulations have been met.
Step 5: Sending Documents to MCA
Combined alongside the DSC of the Head and the expert, all of these papers shall be linked to the SPICe+ Form, SPICe-MOA, and SPICe-AOA and shown to the MCA portal for acceptance. When the Company gets incorporated, a computerized process provides the Pan Number and TAN. To receive a PAN Number and TAN, you do not need to submit separate registrations.
Step 6: Filing of the Certification of Organization
After confirmation, the Registrar of Corporations (ROC) issued an Official Certificate of Organization, after which Nous can begin operating our firm.
OPC Registration Requirements
- One member is required at all times.
- Before formation, a candidate needs to be chosen.
- Form INC-3 must be filled out with the nominee’s permission.
- To comply with the 2014 Organizations (Incorporation Rules), the OPC’s name should be chosen in the above way.
- 1 lakh rupees is the minimum allowed capital.
- Director’s SSC under consideration.
- Documentation proving the OPC’s registered office.
Dates for OPC Registration
The proposed directors’ DSCs and DINs could possibly be secured in a single day. It takes 3-5 days to get an OPC’s Certificate of Incorporation. Subject to administrative permission and a response from the appropriate agency, every step of the incorporation procedure for an OPC lasts around 10 days.
Benefits of OPC
- Legal standing
The member grants the OPC independent legal entity status. The OPC’s unique legal status as a distinct organization protects the person who established it. The member’s responsibility is restricted to the value of the member’s shares; he or she is not personally responsible for the Company’s loss. So, rather than suing the member or Director, the creditors may instead bring a claim against the OPC.
- Easy access to funding
OPC is a private corporation, making it simple to seek funding from venture capitalists, angel investors, incubation facilities, etc. Financial institutions and banks prefer to lend money to corporations over sole proprietorships. As a result, getting money is simple.
- Few compliances
With respect to compliances, the Companies Act of 2013 grants the OPC a few exemptions. The cash flow statement does not have to be made by the OPC. The annual reports and books of accounts may only be signed by the directors; the business’s secretary is not required to sign them.
That is all about opc company in india. Follow these steps to get your registration process easy.