One Person Company Registration in India
Posted: Jan 06, 2020
The Company Act, 2013 has launched the new form of doing business which is known as one person company registration in India
, for the company incorporated by a minimum of 1 person. This has paved the way for numerous budding entrepreneurs and start-ups which as they required a minimum of 2 directors and members earlier. As per Section 2(62) of the Company’s Act 2013, now a company can be formed by just 1 director and member.
The process of formation of OPC
The person who wished to incorporate a One Person Company has to go through the following steps to complete the process:
- The first step is obtaining the DIN (Director Identification Number) for which can be obtained by filing the DIR form. The director also needs to obtain a Digital Signature Certificate and both the DIN and the signature certificate is provided from the official website of the Ministry of Corporate Affairs (MCA).
- A meaningful and unique name is to be created for the company establishment. Once the name is decided, the sole shareholder is required to apply for name registration of the company.
- It is essential for the OPC holder to mention the name of a nominee or another the person in the memorandum of association, with the prior written consent of that person. It ensures that in case of an untimely demise of OPC holder or the situation of his capacity to contract, in that situation, the mentioned person becomes a member of that OPC. This information is also filed with the registrar at the time of incorporation of OPC.
- The main form that has to be filled in the Form INC- 2 which is required for incorporation of OPC. The form has to be submitted to the registrar along with several attachments. The attachments include:
- The Memorandum of Association
- The Articles of Association
- Identity proof of the nominee
- Proof of the residence of the nominee
- A copy of the PAN card of the nominee for the OPC.
- Written consent of nominee in INC- 3 form.
- The Form INC-9 should include an affidavit from the OPC holder and first director to the memorandum.
- A complete list of all the companies (specifying their CIN) which have the same registered office address, if any, has to be provided.
- There has to be a Sample signature in form INC- 10.
- Well-established articles of association to be attached.
- A document Proof of registered office address.
- A few Copies of the utility bills. (not older than 2 months)
- Proof to be attached to establish the permission provided to the company for using the given address as a registered address if it is pre-owned by someone else.
- Written consent of the director.
- Some other optional attachments.
- After the submission of the form with all the requisite documents, the OPC shall receive the certification from the registrar of companies. After this, the business proceedings can be commenced.
- The complete process of the incorporation of an OPC can also be carried out online, by filing the INC – 2 form on the MCA website.
The unique features of OPC
Forming an OPC is much easier than forming a private limited company and it has numerous features which makes it a top choice of the business owners:
- The share capital which has to be paid is of minimum value up to 1 lakh.
- This can be in the form of limited by share or limited by guarantee and it can also be an unlimited company.
- There can maximum directors up to 15 as well as minimum directors of
- The OPC does not require to conduct an AGM (Annual General Meeting).
- The term One Person The company has to be mentioned in brackets below the name of the company.
Kavita is working as a consultant at a legal services in India. She is also an experienced and passionate writer who has been written many Blog and websites' content about Company registration and Trademark registration in India.