One Person Company
One person company registration in India can be done under the Company's Act 2013 with just one member and a director (the director and member can be the same person). It is a hybrid model of corporate firm and sole-proprietorship. The concept was introduced in the year 2013, with the intention to improve sole-proprietorship, and has simpler compliances than that of a Private Limited Company.
According to Section 2 (62) of the Company's Act 2013, a company can be formed with just one director and one member. It gives a single person ultimate authority over a business while limiting his/her liabilities and responsibilities towards the company.
Benefits of One Person Company
- The Separate Legal Status – The Company is considered a separate legal entity that limits the liability of the single individual who has incorporated it. Therefore, in case of loss creditors can’t sue the member or director.
- The Easy Funding – The single owner can always raise funds through venture capital, angel investors, incubators, etc. Also, the banks and financial institutions prefer to grant loans to a company instead of a proprietorship firm.
- The Fewer Compliances – OPC is exempted from certain compliances. For instance, it does not need to prepare a cash flow statement. The company secretary need not sign the books of accounts and annual returns and be signed only by the director.
- The Simple Incorporation – There is no minimum paid-up capital requirement, and the minimum authorized capital for incorporating OPC is Rs.1 lakh. Thus, it is easy to carry out OPC registration.
- Feasible Management – As a single person is responsible for the operation, it becomes easier to manage the company. The ordinary and special resolutions can be passed by the member easily by entering them into the minute book and signed by the sole member.
- The Perpetual Succession – Even though there is only one member, it possesses the feature of perpetual succession as at the time of OPC registration, the single-member needs to appoint a nominee.
The Process of One person company registration
One Person Company Registration in India is quite simple
Step 1: Apply for DSC
Step 2: Apply for DIN
Step 3: Name Approval Application
Step 4: Documents Compilation
Step 5: Documents Required
- The applicant needs to prepare the following documents :
- Memorandum of Association (MoA)
- Articles of the Association (AoA)
- Since there is only 1 Director and 1 member; a nominee on behalf of such a person has to be appointed and consent of the same will be taken in Form INC – 3 with his/her PAN card and Aadhar Card.
- Proof of the registered office of the proposed Company along with the proof of ownership and a NOC from the owner.
- Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2 respectively.
- A declaration by the professional certifying that all compliances have been made.
Step 6: Filing forms with MCA
Step 7: Obtain the certificate of incorporation
Requisites for One Person Company Registration
- Minimum and maximum of one member.
- A nominee should be appointed before OPC Registration and his/her consent in form INC-3
- The name of the OPC must be selected as per the provisions of the Companies (Incorporation Rules) 2014.
- Minimum authorized capital of Rs.1 lakh.
- DSC of the proposed director.
- Proof of registered office of the OPC.
How Muneembhai Simplifies the Process of Registering a Company?
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