One Person Company
According to the Companies Act, 1956, Minimum 7 members are required to incorporate a Public limited company while only 2 members are needed to register a private limited company. As per provision of section 2(62) of the companies act, 2013, one can start a one-person company in India that requires only one member to form a legal entity. The main benefit of forming a one-person company is that it is a separate legal entity that provides legal protection to the shareholders in the form of limited liability. All those provisions which are applicable to private companies are also applicable to the one person company (OPC).
How to Form a One Person company?
According to the Rule 3 of the Companies (Incorporation) act, 2014, the one person company member should be an Indian citizen and a resident of India. He/she should not be a minor. Resident of India means a person who lives in India for a time period of at least 182 days in a financial year.
A natural person means a normal person. It is not an entity such as a HUF, a corporate body, a partnership firm, or a sole proprietorship. A foreign citizen or non-resident Indian is not allowed to make an OPC in India. Minimum one director is required for the formation of an OPC. It must have one promoter also. Director & promoter can be the same person. As per rule 3 of companies (incorporation) rules, 2014, a person is not eligible to become a member or a nominee of more than one OPC.
It is very essential to choose the nominee of a member of an OPC. The consent of the nominee is required in a written form. A nominee can only take up the charge and become the member of the company, if the member is died or incapable of contract.
What Is Included In Our Package?
Advantages of One Person Company Registration in India
OPC registration is necessary because of the following reasons –
It provides legal protection to its members in the form of limited liability.
It is a separate legal entity distinct from its members. It is separate at law from its directors, shareholders, promoters and subject to certain rights, rules, regulations, duties & obligations.
One person company enjoys the benefit of perpetual succession as it continues to exist till it is legally resolved. Its existence is unaffected by the death of any of its members or ownership change.
One person company can borrow money from the lenders which totally depends upon its current financial position.
One Person Company has less compliance requirements as compared to other companies.
Mandatory Documents for OPC Registration
Minimum requirements for OPC Registration
Eligibility for OPC Registration
The eligibility criteria for OPC registration are as follows –
A natural person who is a citizen & resident of India –
- Is eligible to incorporate an OPC
- Is eligible to be a nominee of the main member in an OPC.
A resident of India is a person who stayed in India for at least 182 days in a relevant tax year is considered as an Indian resident.
Note – In case OPC exceeds the average annual turnover of Rs.2 crore or a paid up capital of Rs.50 Lakhs, it can be converted into a public or private limited company within 6 months period.
Factors to be taken in consideration while Choosing OPC name
Name selection of an OPC is very important and should be done with proper planning as it is your first impression towards buyers, suppliers and stakeholders. Therefore, the name should be unique, relevant and attractive.
You need to keep certain factors in your mind while choosing the OPC name and they are as follows –
A short & simple name always catches the people’s attention as people can easily pronounce it and recall it again as well. It should not be too long.
The name of your OPC should be relevant to the business or work you are doing. It should fit as per company’s branding strategy.
The name of your OPC should be unique and should not be similar to any other existing company or trademark name unless your application will be rejected by MCA.
The name of your OPC should not be abusive or against customs and beliefs of any religion. Kindly don’t use words or phrases which are offensive to a particular group of people or religion. It should be legal in the eyes of law.
The name of your OPC should not be mentioned under and violate the emblems & names act, 1950.
Kindly don’t use the word “British India”
Step By Step Procedure for One Person Company Registration
You have to fill up our easy-to-use business registration form and submit the required documents to register your business.
Second step to form a one person company is to get the Digital Signature Certificate (DSC) of the director of the company and DSC. A person who wants to form a one person company needs to apply for a director’s identification number via form DIR – 3 along with name & address proof of the director.
The promoter of one person company (OPC) needs to apply for the company name via E form INC 1 and has to submit the same to the registrar of companies for incorporation. You need to pay rupees 1,000 via debit card or net banking to complete the payment process. For example – Name of the OPC can be “ABC (OPC) Private limited”.
All the essential papers are created by us and then filed with ROC on your behalf.
All the documents will be attached to Articles of Association (AOA), Memorandum of association (MOA) and SPICe form along with the digital signature certificate of the director. All these documents will be uploaded on the website of ministry of corporate affairs for approval.
After completing the verification procedure, ROC issues the certificate of incorporation for the commencement of the business.
Concerns Regarding OPC Registration
How Finacbooks help in OPC Registration?
Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing One Person Company registration at a least possible price. We will guide you through the entire process of OPC registration. To avail the best deals on One person company registration, kindly call us at 8800221252 or you can also e-mail us at firstname.lastname@example.org