One Person Company
ONE PERSON COMPANY REGISTRATION
The idea of One Person Company [OPC] is introduced by The Companies Act, 2013, consequently empowering Entrepreneur(s) carrying on the business in the Sole-Proprietor type of business to go into a Corporate Framework.
One Person Company is a mixture of Sole-Proprietor and Company form of business and has been provided with concessional/relaxed prerequisites under the Act.
Highlights of One Person Company (OPC)
1. Max One Shareholder:
An individual, who is an Indian citizen and occupant in India, will be qualified to incorporate a One Person Company. Explanation: The expression "Occupant in India" implies a man who has stayed in India for a time of at the very least 182 days during the promptly preceding one calendar year.
2. Nominee for the Shareholder:
The Shareholder might nominate someone else who should turn into the shareholders if there should arise an occurrence of death/inadequacy of the first shareholder. Such nominee should give his/her consent and such consent for being assigned as the Nominee for the sole Shareholder. An individual, who is an Indian citizen and occupant in India can be a nominee for the sole individual from a One Person Company.
Must have at least One Director, the Sole Shareholder would himself be able to be the Sole Director. The Company may have a maximum number of 15 directors
Terms and conditions of OPC
- A person might not be qualified to join more than a One Person Company or become a nominee in more than one such organization.
- Minor can't be a member or part or nominee of the One Person Company or can hold shares with beneficial interest.
- An OPC can't be joined or changed over into an organization under Section 8 of the Act. [Company not for Profit].
- An OPC can't do Non-Banking Financial Investment exercises incorporating the interest in securities of any body corporate.
- An OPC can't change over intentionally into any sort of organization unless two years have terminated from the date of consolidation of One Person Company, except threshold limit (paid up share capital) is expanded past Rs.50 Lakhs or its annual turnover amid the important period surpasses Rs.2 Crores i.e., if the Paid-up capital of the Company crosses Rs.50 Lakhs or the normal yearly turnover amid the significant period exceeds Rs.2 Crores, at that point the OPC needs to constantly record shapes with the ROC for transformation in to a Private or Public Company, with in a time of Six Months for breaching the above limits.
Required Documents:- (All copies of documents should be self-attested by the customer)
Identity and Address Proof
PAN is mandatory. For foreign nationals, apostilled or notarized copy of passport must be submitted mandatorily.
Residence proof documents like bank statement or electricity bill must be less than 2 months old.
A recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
DSC, DIN, RUN Name Approval, 1 lakh authorized capital, incorporation fee and stamp duty*, incorporation certificate, TAN.
Steps to Incorporate One Person Company (OPC)
- Obtain Digital Signature Certificate [DSC] for the proposed Director(s).
- Obtain Director Identification Number [DIN] for the proposed director.
- Select suitable Company Name, and make an application to the Ministry of Corporate Office for accessibility of name.
- Draft Memorandum of Association and Articles of Association [MOAand AOA].
- Sign and record different reports incorporating MOA and AOA with the Registrar of Companies electronically.
- Payment of Requisite expense to Ministry of Corporate Affairs and furthermore Stamp Duty.
- Scrutiny of reports at Registrar of Companies [ROC].
- Receipt of Certificate of Registration/Incorporation from ROC.