ONE PERSON COMPANY

What is ONE PERSON COMPANY?

As the name suggest “One Person Company means a company which features only one Member”. Unlike a private limited company, this single company registration with a single director doesn’t need minimum two directors. Minimum Authorised Capital required for OPC registration is Rs. 1 Lakh. Every OPC must nominate one nominee director in the MOA or AOA who will become the owner of the OPC in case the promoter director is disabled / dead.

Advantages of OPC:-

• Limited Liability: -The directors’ personal property is forever safe in no matter the debts of the business. In OPC only investment in the company is lost, personal assets of the directors are saved.
• Continuous Existence-An OPC has a separate legal identity, it would pass on to the nominee director, therefore, it has continued existence.
• Greater Credibility- An OPC requires to have its books audited yearly, it has higher credibility between vendors and lending institutions.
• Easy to Sell OPC- OPC Company is simple to sell because of limited documentation work.
• Full Control over the Company with a Single Owner-This fact helps in fast decision making and execution. Yet OPC can select as many as 15 directors for official functions, without providing any share to them.
• Easy to raise funds and loans-OPC is 1 of the easiest forms of corporate entities to operate. Very few ROC filing is to be registered with the Registrar of Companies. No need to handle Annual General Meeting and other regular compliances.
• Less number of compliances- For a One Person Company, the number of compliances is less.

Procedure for OPC Registration:-

1) The first step is to obtain a Digital Signature Certificate (DSC) by all the Directors. Documents required to obtain DSC are:

• PAN Card of the Director
• Aadhar card of the Director
• Photo
• Email ID
• Contact Number

2) After obtaining DSC, the next step is to obtain the Director Identification Number (DIN) by filing form DIR-3 along with a self-attested identity proof, address proof and a photo. (If directors are more than three as DIN for up to three directors can be obtained through Spice+ Inc-32).

3) File form Spice+ Part Afor reservation of name. Two names can be proposed in application. CRC on being satisfied may reserve the name for a period of 20 days from the date of approval.

4)In case the articles of association contain provisions for entrenchment, the company must inform the Registrar of such provisions in Form No.INC-2 at the time of incorporation of the company or in case of existing companies (by amendment of the articles of association), the same must be filed in Form No.MGT-14 within 30 days from the date of entrenchment of the articles.

5)An application must be filed, with the Registrar of Companies(ROC) within whose jurisdiction the registered office of the company is proposed to be situated, in Spice+ Part B along with e-MOA and e-AOA.

6) Signing of Memorandum and Articles of Association - The MOA and AOA of the company must be signed by the sole member who is also the subscriber to the memorandum, who must give details of his name, address, description and occupation, if any, in the presence of at least one witness who must also attest the signature and must also sign and give his details.

7) Affidavit of Subscriber and the director - The affidavit must be submitted by sole member who has subscribed to the memorandum and named in the articles in Form No.INC-9.

8) Particulars of Subscriber - The sole member must file the particulars of subscription with the Registrar at the time of incorporation.

9)9) Nomination by the sole member- The subscriber to the memorandum of a One Person Company must nominate a person, after obtaining prior written consent of such person, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.

10) The name of the person nominated shall be mentioned in the memorandum of One Person Company and such nomination in Form No INC-2 along with consent of such nominee obtained in Form No INC-3.

11)11) Declaration by professionals- The declaration by an Advocate, a Chartered Accountant, a Cost accountant or Company Secretary in practice shall be in Form No. INC-8.

12)12) After satisfying with all the details provided in application for certificate for incorporation, registrar of companies shall issue Certificate of Incorporation (COI) of the company and allot CIN Number (Corporate Identity Number).

Documents required for OPC Registration:-

1. Copy of PAN Card of Owner and Nominee

2. Passport size photograph of the Owner and Nominee

3. Copy of Aadhaar Card/ Voter identity card

4. Copy of Rent agreement (If rented property)

5. Electricity/ Water bill (Business Place)

6. Copy of Property papers (If owned property)

7. Landlord NOC (Format will be provided)

8. Company Name (1 to 2 Names)

9. Company Service or product Name.

10. Valid Email id & Contact number of Owner & Nominee.