One Person Company (OPC)
/ Company formation / registration

One Person Company (OPC)

One Person Company (OPC) could be a new type of business entity that enables one person to control a company entity with liability protection. The idea of 1 Person Company (OPC) in Asian nation was introduced through the businesses Act, 2013 to support entrepreneurs UN agency on their own square measure capable of beginning and operational a venture by permitting them to form one person economic entity. in an exceedinglyll|one amongst|one in every of} the largest blessings of a 1 Person Company (OPC) is that there is only 1 member in a OPC, whereas a minimum of 2 members square measure needed for registering and operational a non-public Ld. or a liability Partnership (LLP).

Similar to an organization, a 1 Person Company could be a separate legal entity from its promoter, giving liability protection to its sole stockholder, whereas having continuity of business and being simple to include. although a 1 Person Company permits a lone businessperson to control a company entity with liability protection, a OPC will have many limitations. for example, each one Person Company (OPC) should nominate a politico Director within the ratite and AOA of the corporate – UN agency can become the owner of the OPC within the event of death of the Promoter. Also, a 1 Person Company should be regenerate into a non-public Ld. if it crosses a median annual turnover of Rs. a pair of Crores throughout the relevant amount or paid up share capital of Rs. fifty Lakhs and should file audited monetary statements with the Ministry of company Affairs at the top of every fiscal year like every type of firms. Therefore, it’s necessary for the businessperson to rigorously contemplate the options of a 1 Person Company before incorporation.

FEATURES of ONE PERSON COMPANY

1. only 1 Shareholder:
Only a natural person, UN agency is associate Asian nationn national and resident in India, shall be eligible to include a 1 Person Company.

2. Nominee for the Shareholder:
The stockholder shall nominate another one that shall become the stockholder just in case of death/incapacity of the initial stockholder. Such politico shall provide his/her consent and such consent for being appointed because the politico for the only stockholder. solely a natural person, UN agency is associate Asian nationn national and resident in India, shall be a politico for the only member of a 1 Person Company.

3. Director:
Must have a minimum of 1 Director, the only stockholder will himself be the only Director. the corporate could have a most range of fifteen administrators.

TERMS AND RESTRICTIONS OF OPC

  1. A person shall not be eligible to include quite a 1 Person Company or become politico in additional than one such company.
  2. Minor will neither become a member or politico of the One Person Company nor hold share with useful interest.
  3. A OPC can’t be incorporated or regenerate into an organization below Section eight of the Act. [Company not for Profit].
  4. A OPC cannot do Non-Banking monetary Investment activities together with investment in securities of any body company. Thus, one cannot neither do business of Loan nor invest cash in securities below OPC.
  5. A OPC cannot convert voluntarily into any quite company unless 2 years have invalid from the date of incorporation of 1 Person Company, except threshold limit i.e. paid up share capital is multiplied on the far side Rs.50 Lakhs or its average annual turnover throughout the relevant amount exceeds Rs.2 Crores i.e.,

If the paid share capital of the corporate crosses Rs. fifty Lakhs or the common annual turnover throughout the relevant amount exceeds Rs. 2 Crores, then the OPC should be mandatorily regenerate in to a non-public or Public Company, with in an exceedingly amount of Six Months from the date of breaching the higher than threshold limits.

REASONS TO REGISTER a 1 PERSON COMPANY
Single promoter
One Person Company is that the solely sort of company entity which will be started and operated by one promoter with liability protection in Asian nation. a company sort of legal entity in One Person Company ensures that the business has perpetual existence and simple possession interchangeability.

Uninterrupted Existence
A company has ‘perpetual succession’, that means uninterrupted existence till it’s de jure dissolved. an organization being a separate legal person, is unaffected by the death or alternative departure of any member and continues to be breathing regardless of the changes in possession.

Borrowing capability
Banks and monetary establishments like better to give funding to an organization instead of partnership companies or proprietary issues. However, a 1 Person Company cannot issue shares to persons apart from the member of OPC, because it will solely be closely-held by one person in the least times.

Easy interchangeability
Ownership of a business is simply transferred in an exceedingly company by transferring shares. The linguistic communication, filing and transfer of share transfer type and share certificates square measure ample to transfer possession of an organization. in an exceedingly one person company, the possession is transferred by fixing the material possession, post and politico director data.

Owning Property
A company being a man-made person, will acquire, own, fancy and alienate property in its name. The property closely-held by an organization may be machinery, building, intangible assets, land, residential property, factory, etc. Further, the politico director cannot claim any possession of the corporate whereas serving as a politico director.

REGISTRATION METHOD

1. Apply for DSC: the primary Step is to get the Digital Signature Certificate (DSC) of the projected Promoter/Director. Copies of following documents square measure needed for getting DSC.

  • Address Proof
  • Aadhaar card
  • PAN card
  • Photo
  • Email Id
  • Mobile Phone range

2. Name Approval Application: future step whereas incorporating a OPC is to make a decision on the name of the corporate. The name of the corporate shall be within the sort of “ABC (OPC) personal Limited”. One should apply for name reservation through RUN (Reserve distinctive Name) service of Ministry of company Affairs (MCA), that has been introduced by MCA on twenty sixth January, 2018. RUN service will solely be employed by making associate account on MCA web site. At present, solely 2 (2) names is applied at a time through RUN service. One probability for resubmission of the shape below RUN service is additionally offered.Therefore, total four (4) name is applied. this can be a rechargeable service and fee should be paid. If for any reason, applied names square measure rejected by MCA, new application shall be filed along side fee.

3.Documents Required: Once the name get approved by MCA, following documents shall be ready for the aim of filing them with Registrar of firms.

4.Memorandum of Association (MOA) and Articles of Association (AOA): These square measure the charter documents of the corporate. ratite is ready in eSpice type INC thirty three (can be downloaded from MCA web site web.mca.gov.in). Location of workplace, main objects, capital, liability, subscriber details square measure set forth in ratite. AoA is ready in eSpice type INC thirty four (can be downloaded from MCA web site web.mca.gov.in). AoA lays down the bylaws on that the corporate can operate. Note: embody the definition of personal Ld. as per Section 2(68) and definition of OPC as per Section 2(62) of the corporate Act, 2013 within the Definition section of AOA. For ratite objects, click here

5. Nominee Consent: Since there’s only 1 member and director in OPC, a politico on behalf of such person should be appointed. Consent of the politico is needed to be taken in type INC – three (form offered for transfer on MCA web site web.mca.gov.in).

6. Affidavits and Consent: Affidavits, as needed below the businesses Act, 2013 and rules created under that, square measure needed to be ready and dead. Affidavits ought to be properly sealed and notarised. Note: date of execution of Affidavits and date of notary public ought to match. Consent of 1st director is needed to be taken in type DIR – a pair of (available online).

7. Registered workplace: Proof of the registered office of the projected Company along side the proof of possession is needed. Latest Utility Bill (Government bill) or Lease Agreement or Conveyance deed etc. shall be treated as proof of possession of registered workplace. Latest Utility bill (Government or private) shall be needed as proof of registered workplace. No objection certificate from the owner, whose name seems on the proof of possession, is needed. Note: Latest means that date of document mustn’t be older than a pair of months.

8. Filing/Approval of forms with MCA: All the aforesaid documents except ratite and AOA shall be connected to eSpice type (INC 32). Self-attested copy of Proof of identity, PAN and Address proof of the Promoter and politico shall even be connected to the shape. Director number, if not offered, shall be assigned with the approval of eSpice type (INC 32). Note: Aadhaar Card is taken into account as identity proof not as address proof. PAN is obligatory. Latest (not older than a pair of months) Bank statement/ movable bill/ bill square measure thought-about as Address proof. Address in Aadhaar Card and Address in Bank statement/ movable bill/ bill is totally different.

9. Certificate of Incorporation: once verification, the Registrar of firms (ROC) can issue a Certificate of Incorporation. Thus, OPC registration method is completed and business is commenced.

10. PAN and TAN of the corporate square measure allotted at the time of approval of same forms by mythical monster. PAN is mentioned within the Certificate of Incorporation of the corporate.

 

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