One Person Company (OPC)
As the title suggests, a One Person Company (OPC) is a form of business that is solely owned and operated by a single individual. Such a form of company has only one shareholder.
Numerous individuals who are at the initial phase of their business prefer this form of the company in India as a one-person company provides numerous benefits with it, which you will find below.
Section 2 (62) of the Companies Act, 2013 states “A corporation can be established with only one member and one director. It is a type of corporation that has fewer compliance requirements than a privately held company.”
Documents Required for OPC registration
The owner of a one-person company should self-attest all the following documents:
- A scan of your Aadhaar card or voter registration card.
- Water or power bill or bank account statement or bill for phone or landline.
- A signature or imprint sample
- Passport or PAN card
- NRIs and foreign citizens must have a visa.
- Photograph in passport format
For a foreign citizen or NRI, all documentation must be verified.
Documents Necessary for the Registered Office
- A digitized text of the subject property landowner’s no-objection certification.
- An English-language digitized copy of an asset or sale document.
- Existing bank profile statement or phone or mobile invoice or gas or power invoice digitized copy
- A digitized copy of a rental agreement in English.
Process for One Person Company Registration
- To get a Digital Signature: For the single promoter and candidate to execute the formation, a digital signature certificate is required. DSC applications require passport-size pictures of the candidate, as well as verification of address proof.
- Getting a DIN: After obtaining a Digital Signature, the organizer and candidate must receive a DIN. At this point, no extra documentation is necessary.
- Accessibility of Title: The registration for domain reservation can be filed to the MCA once the Digital Signature has been acquired. The MCA processes applications in 2-3 days and accepts up to six name selections. The recommended name must adhere to the naming guidelines, and the OPC’s name must conclude or include the words.
- Incorporation: Following name approval, an incorporation application with a signed Memorandum of Association (MOA) and Articles of Association can be filed with the MCA (AOA). The member and nominee would also need to verify their identification, address, and residence. Other incorporation documents, such as affidavits and the sole promoter’s statement, must be submitted in addition to the MOA, AOA, identification evidence, and address proof.
Benefits of One Person Company (OPC) Registration
Simple to handle:
It is simple to administer the OPC’s operations because it is established and maintained by a single person. Deciding things is simple, and the judgment method is rapid. Conventional and special measures can be readily passed by the person by inserting them into the record book and having the solitary person sign them. As a result, managing and controlling the company is simple since there will be no internal disagreement or delays.
Money is easy to come by:
Since a one-person company is privately held, raising cash from investment firms, private capitalists, incubators, and other sources is simple. Corporations are preferred by banks and other financial institutions over sole proprietorships. As a result, obtaining finances becomes simple.
Legal authority:
The member grants the OPC independent legal organization authority. The One Person Company is a separate body that protects the single person who has established it. The participant’s responsibility is confined to his or her interests, and he or she is not personally liable for the firm’s losses. As a result, lenders can sue the OPC rather than a board member or director.
Registration is simple:
Since a minimum of one member and one nominee are needed, it makes the OPC registration simple. A client can also be a director. Even though no lower limit of paid-up funds is required, the minimum allowed share capital for establishing an OPC is Rs.1 lakh. Due to this, it is not very tough to establish, unlike the other types of businesses.
Conclusion
So, this is all about one person company and how it functions. In recent years, the one-person company (OPC) form has been introduced as a modification of the sole proprietorship firm. Making it much easy and smooth to run. Feel free to contact Odint Consulting if you have any more queries.
FAQ’s
Only one person who is an Indian citizen and lives in India is eligible to serve as an OPC participant and nominee. The term “Indian resident” refers to someone who spent at least 6 months or more in India in the previous fiscal year.
One person’s company cannot handle other companies except for his own.