One Person Company Registration
Companies Act 2013 gave birth to the concept of One Person Company. Section 2(62) of Companies Act defines ‘One Person Company’ as “a company run by a single person who is acting as a shareholder and director at the same time”. One Person Company Registration has lower compliance as compared to a Private Limited Company.
Entrepreneurs in the initial stage of their business prefer to create OPCs instead of sole proprietorship business because the advantages that OPCs offer.
GET FREE CONSULTATION
Documents Required for Company Registration
Latest Passport size Color photograph of all the promoters (Shareholders and Directors)
Any of the following ID: Passport, Voter ID/Driving License of Shareholders and Directors.
Registered office Proof
Latest & Clear Telephone Bill/Electricity Bill/ /Water/Gas Bill of the registered office address
PAN Card of all shareholders and Directors. Foreign nationals must provide a valid passport.
Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Shareholders and Directors
NOC from owner
No Objection Certificate from owner(s) of the premises of registered office.
Requirements To Register One Person Company
The directors’ personal property is forever safe in no matter the debts of the business. In OPC only investment in the company is lost, personal assets of the directors are saved.
An OPC has a separate legal identity, it would pass on to the nominee director, therefore, it has continued existence.
An OPC requires to have its books audited yearly, it has higher credibility between vendors and lending institutions.
Easy to Sell OPC
OPC Company is simple to sell because of limited documentation work.
Features of One Person Company Registration
OPC is a new concept governed by the Ministry of Corporation under the Companies Act, 2013.
A private limited company requires a minimum number of two directors while public limited requires 7 but OPC can be formed with minimum one director who himself can be the shareholder and owner of the company. The maximum number of directors an OPC can have is 15.
It requires only one shareholder to establish a One Person Company in India. The shareholder must have stayed in India for the minimum period of 182 days, hence should be an Indian resident.
As per the act, one person company can be formed with one single member and director, therefore, has less compliance as compared to a private limited company.
An Immediate Nominee
Though the company can be started with a single person there should be a nominee who can take the responsibility of the shareholder in extreme case of death or incapacity. The nominee should be an Indian citizen and has to give his/her consent as a nominee of the OPC shareholder. Under OPC registrtaion a company acts like a separate legal entity.
Under One Person Company registration a company enjoys benefits with the limited liability of its directors according to which there personal assets and funds cannot be used to incur the debt of the company.
Process & Timeline for Company Registration
Documentation plays a significant role in OPC Registration. The primary documents of promoters like PAN, ID, and address proof are to submitted along with utility bills like electricity bill, water bill, or telephone bill of the registered address along with a NOC from the owner of premises as proof of the registered address of the company. The list of documents required is provided above for your reference. We shall request the necessary information for OPC Registration in the Questionnaire.
The name of every company should be unique and must not violate the name of any other company or someone else trademark. For this purpose, we conduct a thorough search of the name as per section 4 of the companies act and read with rule 8. Please refer to our detailed discussion on name approval guidelines for company registration.
DSC is equivalent to the physical or paper signature under the information technology act. For registration of One Person Company, all the applications to ROC are filed in digital format signed by its proposed director. The filing process for OPC Registration starts with the issue of a digital signature for the shareholder and director of the company.
RUN is the Name of an online application, which is to be used for making an application for seeking approval of the ROC for the proposed Name of the company. It is a web-based application, where two names in order of preference can be filed with a note on the significance of the Name and the business activities.
After name approval of the OPC, we need to file the formal application for incorporation of the company in form SPICE to the ROC with appropriate documents as attachments. The documents to be attached with Spice Form are MOA, AOA of the company, KYC documents of promoters, and proof of the registered address with NOC from the landlord. The DSC of the promoters is then used to sign the application, which is further attested by one practicing Chartered Accountant, Company Secretary, Cost Accountant, or an Advocate practicing at High Court. The government filing fee for Company Registration depends on the proposed capital of the company.
The final stage for the OPC registration is the Issue of Certificate of Incorporation for the One Person Company after the verification of the application for OPC Registration is filed in Spice Form. The issue of the registration certificate for OPC is the conclusive proof of the registration of the Company by ROC.
Nowadays, the issue of Pan Number and TAN is done automatically at the time of incorporation of the Company. There is no need to make any separate application. The PAN Number and TAN comes printed on the certificate of incorporation itself, and after the registration of the Company, E-Pan and Tan letter is sent via email.
Frequently Asked Questions
You need to arrange very simple documents of director like photograph, Pan card and one address proof. For more details, please fill the above details.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of OPC. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai and Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad, Ahmedabad, Goa and so on.
No. Kanakkiyal provides complete online Company Incorporation process. All legal documentation and visits are done by Kanakkiyal.com
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year one man companies have to file very basic returns with ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.
A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
Yes, company office address can be changed anytime after incorporation.
Capital means investment made by the shareholder into OPC. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholder into company bank account, against which share certificate is issue by the company. There is no minimum compulsion for paid up capital, it can be as low as Rs. 10,000
GET A FREE CONSULTATION
Mobile : +91 - 81221 83745
Email : email@example.com