A-One Person Company or an OPC is the most modern form of business in India which was introduced in India by the Companies Act, 2013. Earlier you needed at least 2 Directors and Members to form a private limited company or at least 3 Directors and 7 members to incorporate a public limited company. However, now as per Section 2(62) of the Company’s Act 2013, even a single member and a single director can form a company. It must be noted that the person must be a natural person, who is also a resident of India in the preceding calendar year (who has stayed in India for a minimum of 182 days).
Since the compliance requirements for an OPC are lesser than that of a private company, this format of business has helped a lot of budding entrepreneurs to start their ventures. It is important to note that no single person can incorporate more than 1 OPC. The OPC format is very suitable for small businesses where the annual turnover is less likely to cross Rs. 2 Crores.
Process of Registration and Incorporation of a One Person Company:
Step 1: Obtain a DSC
You need to obtain a Digital Signature Certificate (DSC) of the director of the company. This DSC will be used to authorise the documents and forms submitted electronically during the registration process & in the post-registration period for monthly, quarterly and annual compliances. You can obtain a DSC from a Certified Authority or an agency who are into this business by providing them basic details including address proof, aadhar card, pan card, photo, email id & phone number.
2. Apply for DIN:
Obtain the Director Identification Number (DIN) of the proposed Director by applying in SPICe Form along with the name and the address proof of the director. This is a very easy process and can be completed within 3 to 5 working days.
3. Name Approval Application:
Obtain name approval for your company using either of the following 2 options:
Option 1: Make an application using RUN Web service of MCA by submitting your 2 preferred name choices along with the significance of keeping that name. Further, if your application gets rejected, you can perform one more re-submission with 2 new name options.
Option 2: Make an application in Form SPICe 32. Here also you can apply with 2 name options which are your preferred choice for incorporating your company.
Step 4: MOA & AOA Approval with other documents:
Once you’ve obtained name approval for your company, you can now submit your draft Memorandum & Articles of Association in electronic form eMOA & eAOA for verification and approval. MOA should layout objects to be followed by the company along with the company’s business(s). AOA should layout by-laws on which the company will operate. One more important point to note is that since the company is run by one person than it is compulsory to appoint a nominee on behalf of such a person. This is because in case he becomes incapable of doing business or dies and cannot perform his duties, the nominee will take his place & continue the company’s operations on his behalf.
Along with eMOA & eAOA you also need to submit, Proof of the registered office of the proposed Company along with the proof of ownership and a NOC from the owner (in case of rented property).
Affidavit and Consent of the proposed Director in Form INC -9 and DIR – 2 respectively for accepting the responsibilities and duties as a director.
A declaration by a professional (Advocate/CA/CS/CWA) certified that all compliances have been made.
All of the aforesaid documents are attached to SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and the professional, and uploaded to the MCA site for approval.
Step 5: Obtain PAN & TAN
After completing the above procedures, you can upload Form 49A and 49B to MCA after affixing the DSC of the proposed Director for generating PAN and TAN of the Company.
Step 6: Getting Certificate of Incorporation
Once all the documents are verified and if everything goes well, ROC will issue you the certificate of Incorporation (COI) of your One Person company. This COI will contain details like the name of your company, the date of its incorporation, the company’s registration, etc. Now you are good to go with your business.
Incorporate your One Person Company at reasonable rates and start the business with lesser compliances. Contact us +91 76 111 666 06 or mail us compliance@solvesto.in