- Lawyer Mr. Shaman Jain
- Skills Company Registration
- CATEGORY Business Registration
ABOUT THIS PRACTICE
Lately, a significant improvement has been made in sole proprietorship by introducing the concept of One Person Company (OPC) . It provides full control of a company to a single promoter and at the same time it also restricts his/her liability to contribute in the business. There is only one person who will act as both director and shareholder although there will be one nominee director but he/she will remain powerless until the real director is incapable of entering into a contract . Thus, there is no scope for raising equity funding or offering employee stock options. However, when an OPC reaches an average three-year turnover of over Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it has to be converted into a private limited company or public limited company within six months.
- Since, OPC possesses most of the features of a private company ,therefore, all the provisions of private company are applicable to OPC.
- OPC can be converted into Public or Private Company and vice versa in certain cases.
- The word ‘One Person Company’ must be mentioned below the name of the company where ever applicable.
- PAN Card: PAN Card of shareholder, nominee, and Directors.
- Identity Proof: Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.
- Director’s Address Proof: Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.
- Photograph: Latest Passport size photograph of Shareholder, Nominee and Directors
- Business Address Proof: Latest Electricity Bill/ Telephone Bill of the registered office address
- NOC from owner: No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement: Rent Agreement of the registered office should be provided, if any
- Unique Name: One Person Company name should be unique as it forms the company brand, preferably a coined word.
- Business Object: The OPC name format shall have the second part of name suggesting the business activity of the company.
- Constitution Type: Name of the company must end with “(OPC) Private Limited” as a suffix.
- Identification of passion and execution of a business plan.
- An entrepreneur willingly takes up risks and responsibilities.
- Business is given personal guarantee.
- OPCs are given separate legal entity.
- It has only one member and one director.
- Any Indian citizen who is residing in India can become the member and nominee.
- Minor can neither become member nor the nominee of the OPC.
- OPC can't be incorporated or changed into a company of section 8 of the Companies Act, 2013 etc
Exemptions under companies act 2013 is there for OPC:
- OPC is not mandatorily required to file annual returns.
- OPC is exempted from holding Annual General Meetings and Board Meetings.
- Signing on Financial Statements is not necessary.
- Tribunal enjoys the power to call meetings of members.
- Notice of the meeting is not mandatory.
- Statement to be annexed to notice is not required by law.
- The quorum for meetings is relaxed.
- Restriction on voting rights is not imposed as in other forms of the company.
- Adherence to rules and regulation pertaining to the Companies Act 2013 regarding voting by show of hands, voting through electronic means, Demand for the poll, Postal ballot, Circulation of members’ resolution is exempted.
Process For One Person Company Registration
- Review of documents and information provided
- Application for Digital Signature Certificate
- Checking Name availability
- Drafting of MoA, AoA & other required documents
- Name reservation application under SPICe
- Filing company registration application
- DIN allotment application
- Application for PAN and TAN of company
- Government processing time