6 Simple Steps to Register a One Person Company in India
According to Section 2(62) of the Companies Act 2013, a company can be formed with just 1 member and 1 director and the compliance requirements are less as compared to other company types. One Person Company (OPC) is registered with only one person who forms a company. On the other hand, a minimum of two members are required to form a company in other types of entities. The OPC registration process is quite simple and there are 6 simple steps to register a One Person Company in India.
This article will guide you with the information for the Registration of a One Person Company.
What are the main features of a One Person Company?
- Only individuals being an Indian citizen and resident in India can become a shareholder of OPC.
- The maximum paid-up share capital is Rs. fifty lakhs in an OPC.
- A Board may consist of one or more directors.
- The maximum turnover allowed is Rs. two hundred lakhs in an OPC.
- An OPC can make conversation to private limited only after its two years of existence.
Who can register a One Person Company in India?
Only those individuals being an Indian citizen and resident in India can become a shareholder and register a One Person Company in India.
Steps to Register a One Person Company
Step 1: Apply for DSC
The first step for the registration of a One Person Company is to obtain the Digital Signature Certificate (DSC) of the proposed Directors. The following documents are required: –
- Aadhar Card
- PAN Card
- Address Proof
- Phone Number
- Email id
Step 2: Apply for DIN
After the Digital Signature Certificate (DSC) the next step is to apply for the Director Identification Number (DIN) of the directors in SPICe+ Form along with the details of the three directors such as name and address etc.
Step 3: Name Approval Application
The next step to register a One Person Company is to decide the name of the company. The name approval application can be made either in SPICe+ 32 Form or by using Reserving Unique Names services (RUN) of MCA by providing with 1 preferred name along with the importance of keeping that name. However, the Ministry of Corporate Affairs (MCA) has decided to allow two proposed names and one resubmission (RSUB) while reserving unique names for the companies, from March 2018.
Step 4: Necessary Documents Required
The necessary documents required to be submitted to the ROC are: –
- Memorandum of Association, which states the objectives of the company the business for which the company is going to be registered.
- Articles of Association that states the by-laws on which the company is going to operate.
- Form INC-3, since there is only one director and a member in the one-person company, a nominee on behalf of the director has to be appointed, who in cases where the director dies or become incapacitated to perform his duty, shall act or perform on his behalf and take his place. Therefore, Form INC- 3 will be required along with his Aadhar Card and PAN Card.
- Proof of Registered office of the company, Proof of ownership and No Objection Certificate ( NOC), is required by the owner of the OPC.
- Affidavit and consent of the Directors of DIR- 2 and INC – 9.
- The declaration, certifying that all compliances have been done, given by the professional.
Step 5: Filing of Forms with MCA
All the documents will be attached to the SPICe – MOA and SPICe – AOA and SPICe Form along with the DSC of the professional and the director, and will be uploaded to the site of the MCA for approval in order to register a one person company.
Form 49A and 49B will be generated after uploading these documents, to generate PAN and TAN for the company which then have to be uploaded at the site of MCA after attaching DSC of the directors.
Step 6: Issuance of Incorporation Certificate
A certificate of Incorporation shall be issued to the company by the Registrar of Companies (ROC), once the verification is done. And the company will get registered under the Companies Act, 2013.
What are the Benefits to Register a One Person Company in India?
The benefits to registering a one-person company in India are: –
· Limited liability
Under the once person company, the directors’ personal assets and the property is not included in the liability of the company. The directors’ liability limited to the shares brought by it in the company.
· Existence Continue for a long time
The company is passed to the nominee director in case of the death of the owner. Therefore, the existence of the one person company continues for a very long time and does not get dissolved on the death of the director.
Since the one person company is audited annually, the company is more trusted by the lending institutions and by the vendors.
How many One person Companies can an Individual Register?
One individual cannot register more than 1 one-person company or become a nominee in more than one such company.
One Person Company is the most suited type of company for the entrepreneurs to enter into the industrial sector. Not only it provides the opportunity to grow but the entrepreneurs can easily start the company by investing less capital into it in the beginning. There are 6 simple steps to register a One Person Company in India and the owner can enjoy many benefits and protection upon the registration of the OPC.
One person company is best suited for the Micro, Small and Medium Enterprises (MSME). It provides them with the opportunity to take part in the development of the economy and grow faster with it. The Registration of a One Person Company must be done in accordance with the rules and regulations prescribed under the Companies Act, 2013.