OPC Private limited company
According to the Companies Act, 1956, Minimum 7 members are required to form 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 which requires only one member to form a legal entity and provides legal protection to the shareholders in the form of limited liability.
The main benefit of forming a one-person company is that it is a separate legal entity which requires only one member 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 a One person company
According to the Rule 3 of the Companies (Incorporation) act, 2014, the one person company member should be a resident of India. He/she should be an Indian citizen and a resident of India. He/she should not be a minor. The resident of India means a person who lives in India for a time period of at least 182 days in a financial 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 & 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 one person company member. 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?
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 needs to apply for a director’s identification number via form DIR – 3 with proof of address and name of the director.
3Choosing the name of the proposed company: 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 have to pay rupees 1,000 via debit card or net banking to complete the process. For example – Name of the OPC will be “ABC(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 attached 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 on the website of ministry of corporate affairs for approval.
Issuance of Certificate of Incorporation
After completing the verification procedure, ROC issues the certificate of incorporation for the commencement of business.
Concerns Regarding OPC Registration
Factors to choose While Choosing The OPC Name
Simple & Short
The name of your OPC should be meaningful for your business and it should 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 need to finish OPC name with “Limited or “Private limited”.
Should not be offensive/illegal
The LLP name should not be illegal or abusive.
The name should as per the laws
The name of your OPC should not violate any laws.
Frequently Asked Questions
When a normal person is a member in One Person Company and if the same person becomes the member in other OPC by virtue of being a nominee in that OPC, then he/she needs to fulfills the eligibility criteria of a member in one OPC (i.e. duration of 180 days).