Introduction: The number of business entrepreneurs in India has been considerably increasing since the last two decades. When it comes to doing business independently, the best option opted by entrepreneurs...
This article will guide you through the process of one person company incorporation and Registration in India. Let us first understand what one person company is.
What is One Person Company (OPC)?
One person company registration concept was newly introduced through an act of 2013 as a company’s act. Like when you want to start a private limited company, you’d at least require a minimum of 2 directors and members. Similarly, when starting a public limited company, a minimum of 3 directors would be required and at least 7 members. You couldn’t start a company by yourself as a sole proprietor previously. But that isn’t a case anymore. As per the section 2(62) of the companies act of 2013, now a company can be incorporated by a single person also himself/herself as its member and director both.
Now here we will list out the supposed documents you would require to start a one person company. So you have an idea of what documents you must stay prepared with and basic pre-requisites for one person company registration application. Following are the steps of preparation.
Prerequisites for one person company registration
- First of all start with the application for a DSC. DSC is a digital signature which is required for signing applications digitally online. So get one made from an agency. These agencies are government certified and they’ll give you a DSC or a digital signature certificate. Now for issuing a digital signature, you will require following documents: –
- Your residential address proof.
- Your registered Adhaar card number.
- Your PAN card number.
- A passport size photograph.
- Your email address used for all official work.
- Your officially registered contact number.
- Next is applying for a DIN. DIN is director’s identification number. For a DIN, apply for the supposed director in a SPICe form. Do this along with your name and your residential address proof again. The form DIR-3 is the only option that is available for the already existing Companies. This means that from January 2018 onwards, the applicants for company incorporation will not have to apply for DIN separately. They can apply for DIN within the SPICe form. This will be for up to 3 directors.
- Next is the name approval application. So while you are to incorporate your one person company, the name could be in the form of xyz one person company private limited. Whatever best suited for your operations. There are however two options that are available for getting your name approved. One is preparing an application in form SPICe 32 and the 2nd is by the use of RUN web services of the ministry of corporate affairs. Once you get your name approved by the ministry of corporate affairs you should prepare for next step.
- Now prepare the documents required for submitting to the ROC. Following is the list.
- The memorandum of association or MOA:- This carries the objects to be followed by your one person company that you are trying to incorporate.
- Next is articles of association or AOA:- This shall lay down the set of operations done by the company by laws.
- Because only one person is going to be appointed as the company director and the member he can appoint a nominee in case he himself is no longer capable of performing his duties or dies or leaves. The nominee may take over the duties thereafter on behalf of the original director of the one person company. The consent will be taken for this in the form number INC-3 along with his PAN card number and Aadhaar card number.
- A proof of your registered office and proof of ownership of the supposed property. A NOC will be required by the landlord of a property in case it is rented.
- An affidavit and a consent of the director of One Person Company via form number INC-9 and DIR-2.
- A declaration by some professional that can certify that all of your compliances have been completed.
- Finally fill the form with MCA along with the attached documents to SPICe form, SPICe MOA and SPICe AOA with your digital signature. And this is ready to be uploaded onto the MCA website for the legit approval.
Now that you are aware of all the prerequisites for one person company registration, let’s look at the steps in an application process. Following are the steps to go by for the process of one person company registration.
The procedural steps of one person company registration. (Summarized)
Step 1: Apply for DSC.
Step 2: Apply for DIN.
Step 3: Name Approval Application.
Step 4: Documents Required.
Step 5: Filing Forms with MCA.
Step 6: Issue of certificate of Incorporation.
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