One Person Company Registration
According to the Companies Act, 1956, seven shareholders or members are required for the formation of a Public limited company. A minimum of two members are required by the private limited company. According to the provisions of the section 2 (62) of the Companies Act 2013, you can make a one-person company. In a one person company, there is only one member.
The main benefit of forming a one-person company is that there is only one member. From its promoter, it is a separate legal entity and provide its sole shareholders limited liability of protection. It is simple to incorporate for the continuance of the business. All those provisions which are applicable to private companies are also applicable to the one person company (OPC).
How to form an One Person Company (OPC)?
According to the Rule three of the Companies (Incorporation) rules, 2014, the one person company member should be a resident of India and he needs to be a natural person. She or he must be a citizen of India and should not be a minor. The resident of India means that person who is living in India for a time period equal to one hundred and eighty-two days as per the last calendar year.
The 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 OPC. It must have one promoter also. Director and promoter might be the same person. To incorporate more than one OPC, a person is not eligible. This is according to the Rule 3 (2) of the Companies (Incorporation) rules, 2014.
It is essential to choose a nominee of the single company member. The consent of the nominee is required in written form. A nominee will only become the member of the company if the member is died or incapable of contract. The name of the nominee is also written in the memorandum of association. A person can not be the nominee of more than one OPC.
What Is Included In Our Package?
Step by Step Procedure for One Person Company Registration
The first step to form a one person company is to get the Digital Signature Certificate (DSC)of the director of the company. For this purpose, the following documents are needed: -
2A person who wants to form a one person company isrequire to apply for a Directors Identification Number (DIN) in the form DIR – 3 with proof of address and name of the director.
3Choosing the name of the proposed company. The promoter of the one person company or OPC need to apply for the company name to the registrar of companies for the incorporation of the company in E form INC 1 by paying rupees one thousand via Debit/Credit card or net banking. The name of the OPC will be “XYZ (OPC) Private Limited”.
You need to submit the following documents to the Registrar of Companies: -
Approval or Filling of forms with Ministry of Corporate Affairs: -
All the documents will be affixed to Articles of Association (AOA), Memorandum of Association (MOA), and Spice form along with the digital signature certificate of the professional and the director. All these documents will be uploaded for approval to the website of ministry of corporate affairs.
Issuance of Certificate of Incorporation
After the necessary procedure of verification, the ROC (Registrar of Companies) will issues the certificate of incorporation for the commencement of business.
Concerns Regarding OPC Registration
Factors to Consider While Choosing The OPC Name
Simple & Short
The name should be short and simple. People can easily pronounce or recall the name of your company.
The name of your OPC must be meaningful for your business. It should be fit into the branding strategy of the company.
Your OPC name should not be similar or identical to an existing trademark, company or LLP name.
There is no any need to finish OPC name with “Limited” or “Private Limited”.
Should not be offensive/illegal
The LLP name must not be illegal. It must not be abusive.
The name should as per the laws
The name of your OPC should not violate any laws.
Frequently Asked Questions
For the conversion of an OPC into private or public company, form INC-6 need to be filed. To convert itself into an OPC, the private company needs to file form INC – 6. During the time of such conversion into OPC, the annual average turnover of the private company must not be more than rupees two crores. Also, the paid-up share capital of the private company is not more than rupees fifty lakhs.
The company must be having one member and require to appoint a nominee to work as member in case of incapacity or death of the member at the time of OPC conversion.
When a natural person is a member in One Person Company and if he becomes a member in another OPC by virtue of being a nominee in other OPC, then he requires to fulfills the eligibility criteria of a member in one OPC with a duration of one hundred and eighty days. She or he can cancel his membership from the both OPCs within 180 days.
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