The concept of One Person Company registration was introduced not so long ago by the Ministry of Corporate Affairs. This business model was introduced with an objective to give a strong business model option to single entrepreneurs. Earlier for incorporating a company at minimum two members and directors are required. To give young, single and enthusiastic entrepreneurs an option to venture into the corporate world concept of One Person Company was introduced.
As per Companies Act 2013. Section 2(62) (OPC) One Person Company as a company which has only one person as a member. This is a special type of company which allows the sole owner to start a business under Private limited structure without adding any co-founder onboard. OPC is more popular for single managed business. OPC Registration is a modern approach to Sole-proprietorship business in India.
A person who is resident in India i.e. he has stayed in India for 182 days during the immediately previous financial year. However, one such person can't form more than one OPC or become the nominee of more than one for such a company. Foreign nations cannot register one person company in India.
Digital Signature also termed as DSC are required for signing all kinds of online documents and forms. Thus before initiating the procedure for OPC registration, the applicant is required to apply for Digital signature. There are certain bodies authorized to issue DSC by the MCA. For DSC a signed application form is required to be submitted along with PAN, address proof, a photograph of the applicant.
Once you have received your digital signature next step to apply for Name Reservation of your proposed company. Name Reservation application is filed through Reserve Unique Name (RUN) facility available on the Ministry of Corporate Affair’s official portal www.mca.gov.in. The applicant can file the name reservation application with two proposed names and one resubmission is allowed in case the proposed names are rejected. While finalizing the name of your organization following points must be kept in mind:
Note: You can also apply for name reservation in SPICe form along with OPC registration application. However, it is recommended to go for name reservation before preparing the required documents for OPC registration.
Once the name is approved through RUN service it will be reserved for 20 days. The applicant is required to fill all the relevant information in SPICe Form and prepare all the necessary documents that are required to be attached with OPC registration application. Following documents are required to be prepared:
Once all the required documents are prepared an application for OPC Registration is to submit. For this E forms SPICe, SPICe AOA and SPICe MOA are uploaded on the MCA portal as linked forms and fees should be submitted. After successful submission, a Service Request number (SRN) is generated. The applicant can track the status of the OPC registration application through this SRN number.
After thorough verification of the OPC registration application if the proper officer has any issues then the application is sent back for resubmission. For which the applicant is required to make the necessary changes and resubmit. After satisfaction, OPC registration is granted and Certificate of incorporation (COI) is issued by the authorities. The following information is conveyed after successful registration:
Note: Exemption of section 96, section 98, and from 100 to 111 are allowed to OPC under Companies Act 2013.
An OPC is mandated under the companies' act 2013 to compulsorily convert into the private company on occasions when it's paid-up capital increases above 50 lacs or turnover is above 20 Corer. The conversion must be done within 6 months.
No, a foreigner cannot be appointed as a nominee in an OPC. The name of the person nominated shall be mentioned in the. Form No INC-2 along with consent of such nominee obtained in Form No INC-3 is to be filled.
Yes, the affidavit in Form INC-9 is required to be filed by the subscriber of the memorandum.
No, a public limited company cannot be converted into an OPC.
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