ONE PERSON COMPANY REGISTRATION

one-person-company-registration

One Person Company Registration

One Person Company Registration is a newly concept that has been introduced through Company’s Act 2013 and it is generally abbreviated as OPC under The Company’s Act, 2013.

One Person Company Registration is to done with the permit of 1 director and 1 member. Previously, a single person was not allowed to incorporate a company because the minimum requirement of directors and members were 2 in a private company and 3 directors and 7 members in a public company. However, by the fermentation, as per Section 2(62) of Company’s act, 2013 a one person company can corporate with 1 director and 1 member where the compliance requirement is lesser than in Private Company.

Small Business owner and Entrepreneur, who wants to start their business with potential can go for One Person Company Registration as the biggest advantages of starting a One Person Company are that only one person is required to start the business.

FEW OF MANY BENEFITS OF OPC:

  1. Sole Heart of the company:-  As the member will be the own Boss in the Company and have Complete control over the company 
  2. Separate Legal entity:- One Person Company Registration gives a separate legal recognition from its member as it is registered as a Private Limited Company. Name of the Company ends with (OPC) Private Limited. For example XYZ (OPC) Private Limited 
  3. Limited Liability:- As One Person Company Registration secure the personal assets of the owner, if the business lands up in crises
  4. Easy to teleport as Private Limited Company:- After completion of Two (2) Years, One Person Company (OPC) can easily convert into as Private Limited by following govt prescribed procedure
  5. Minimum Requirement:- One Person Company Registration has Minimum Requirement Like :-
  1. One Director
  2. One Member
  3. One Nominee
  4. Director and Member can be same 
  5. Easy to get Loan from Bank :- Bank prefers to give loans to Company rather than sole proprietorship firms. 

Note:- One Person Company registration Mandatorily required to be convert itself into Private/Public Company within in 6 months if following eligibility met

  1. if the paid up share capital exceeds 50 lakh rupees  and 
  2. Average annual turnover during the period of immediately preceding three consecutive financial years is beyond rupees 2 crores. 

Documents and information required for One Person Company Registration:

S. No.Particulars
1.Two Proposed Name of One Person Company (OPC)
2.    Detailed Object of One Person Company registration (OPC)
3.Self -attested copy of PAN and Aadhar card of all Member and nominee.
4.Share Capital Contribution 
5.Mobile No, E-Mail Id and Photograph of the member and nominee.
6.2 months Bank statement of Member and nominee (Latest).
7.Proof of Registered office of the Company.
8.Proof of ownership and a NOC from the owner along with Rent Agreement.
9.Consent of the proposed Director of Form INC -9 and DIR – 2 resp.

*All these documents will be attached to SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and the professional, and will be uploaded to the MCA site for approval.

Brief Procedure For One Person Company Registration 

Step 1:- Obtain Digital Signature Certificate (DSC)  of the proposed Directors/Member of the One Person Company. A digital signature is required for the signing of the online incorporation application (Spice Form) on the Ministry of Corporate Affairs Web Portal.

Step-2:- Reserve a unique fresh name by making an online application through RUN on the MCA portal. Please note that validity of name reserved is 20 days from the approval date. So further process of the One Person Company Registration required to be done within Time Frame.

Step-3:- Drafting of detailed Memorandum of Association (“MOA”) and Article of Association (“AOA”) in prescribed Format.

Step-4:- File online Application for Incorporation of Company, along with the consent of such nominee obtained in Form INC – 3 with all necessary attachment with the MCA with support of affixation of Digital of Signature of Member and Professional who is certifying Forms.

Step-5:- On being satisfied, Central Registrar Center shall proceed to issue a certificate of Registration 

Step-6:- After getting Certificate of Registration , Open Current Account in the bank and deposit the subscribed amount of MOA in the Bank Account.

ENROLLMENT PROCESS THROUGH SMARTBIZGURU:

SmartBizGuru serves you the whole process of One Person Company Registration:

AFTER ONE PERSON COMPANY REGISTRATION , YOU CAN ENJOY FOLLOWING SERVICES:

  1. Certificate of Registration  
  2. Director Identification Number (DIN).
  3. Permanent Account N​umber (PAN).
  4. Tax Deduction and Collection Account Number (TAN-TIN).
  5. Digital Signature of Member
  6. Mandatory issue of Employees’ Provident Fund Organization (EPFO)  registration 
  7. Mandatory issue of Employees’ State Insurance Corporation (ESIC) registration 
  8. Mandatory issue of Profession Tax registration(Maharashtra) 
  9. Mandatory Opening of Bank Account for the Company and 
  10. Allotment of Goods and Services Taxpayer Identification Number (GSTIN) (if applied for).

Frequently Asked Question in respect of One Person Company Registration

  1. What is an One Person Company (OPC)?

A Company which has a single member as the only shareholder is known as One Person Company.

  1. Who is eligible to form One Person Company in India?

Only a Natural person who is a resident and citizen of India can form a One Person Company.

  1. Do One person Company and a Sole Proprietorship are the same?

No, One Person Company and a Sole Proprietorship are two different concepts.  One Person Company is registered under the Companies Act, 2013 and Sole Proprietorship is not registered under the Companies Act, 2013; it may be registered by 3 ways- Under GST Act or under Shop and Establishment Act or under Ministry of MSME through Udyog Aadhaar.

  1. What is the minimum capital requirement to incorporate a One Person Company?

 There is no minimum limit for incorporation One Person Company.

  1. How many members are needed to form a One Person Company?

As the name suggest only one member is required to incorporate One Person Company

  1. What is pre-requisite to select name of  One Person company?

The name should satisfy the following conditions-

Unique name- should not match with already existing companies. Shall not consist of a word which is an offence under any law. Do not relate with any government related words.

  1. Can a minor be a director of One Person Company?

Answer is no, a minor cannot be appointed as a director in any of the Companies.

  1. What is the Income Tax Rate for One Person Company ?

Income Tax Rate for One Person company is 25%.

  1. When is it mandatory for a One Person company to register under GST?

When the business of a company exceeds rupees 40 lakhs as a turnover than it is mandatory to register under GST.

  1. What are the compliances to be made after getting a One Person Company registered?

Annual Compliances –

one person company registration

General compliances-

  • Holding Annual General Meeting and board Meetings
  • Statutory Registers
  • Minutes Book
  • Books of Accounts/Financial Statements
  • DIR 3 KYC every year

Smartbizguru also helps in posting compliance of the Company like appointing a Auditor, Preparing Finance of the Company, Filing of GST Returns and Other Returns to Government Authority, Registrar of Company (ROC) Compliances, and Consultation on Digital Market solutions. 

You’re just one step away from enjoying all of these services from the comfort of your home!

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