An One Person Company (OPC) is an organization that is owned and operated by just one person. The Companies Act of 2013 precludes a single individual from forming a company. In order to form a company, a person must have at least two directors and two persons. The Companies Act 2013 allows organizations to be formed with only one director and member. As opposed to privately owned businesses, it has fewer continuity needs.
According to the Companies Act, 2013, an organization can be formed with only one director and member. Individual organizations are created by individuals who may be residents or NRIs, and have the salient features of an organization along with the advantages of a sole proprietorship.
With the help of one Person Company, one can get-
A member of OPC becomes a legal entity separate from the member. Assuring the person who consolidated the OPC is another legitimate element.
Easy to get funds
Private businesses like OPC are easily pledged through investments, incubators, and investors, since they are privately owned.
Companies Act, 2013 excludes OPCs from compliance requirements. An income statement is not required by OPC.
For its establishment, the OPC needs only one nominee to become a member.
Easy to pay and manage
Because the OPC can be designed and operated by one person, its ventures do not require a lot of management expertise. Choosing a process is an easy decision.
There is an infinite progression module in OPC when there is only one member. As the OPC consolidates, nominating nominees will only require one part.
Step 1: One should apply for DSC
It is necessary to obtain the following documents in order to obtain the Director’s Digital Signature Certificate (DSC):
- Aadhar Card
- PAN Card
- Address proof
- Mobile number
- Email ID
Step 2: Apply for DIN
Once the Digital Signature Certificate (DSC) has been generated, the proposed Director must submit their Director Identification Number (DIN) along with their name and location in the SPICe form. Existing organizations can access the Form DIR-3. The applicant does not need to independently document Form DIR-3 with effect from January 2018. Within the SPICe form, DIN can currently be applied to three directors.
Step 3: Application for Name Approval
In addition to integrating OPCs, naming the company is the next step. Our company will be called “XYZ (OPC) PRIVATE LIMITED”. It is possible to allow the name through the SPICe+ 32 application. Only one preferred name can be given in Form SPICe+ 32 with the meaning of having that name. The SPICe+ 32 application form can be used to come up with another name if the original one is rejected. The next step is to proceed once the name has been approved by the MCA.
Step 4: Required Documents
ROC requires the following reports: Memorandum of Association (MOA), which is the item followed by the company or the item expressing the business for which the organization will be integrated. In the Articles of Association (AOA), the organization’s by-laws are laid out.
Due to the fact that there is only one director and member, it is in the interest of such a person to nominate someone. This will ensure that if the chosen one becomes ill or dies and cannot fulfill his obligations, there is someone who will replace him and take his place. In addition to their PAN and Aadhar cards, the consent form INC-3 will be brought.
Registration of the planned company, as well as confirmation of possession and a no objection letter from the owner, must be provided.
The proposed director’s declaration and consent should be separated from the DIR-2.
The specialist’s declaration confirming compliance.
Step 5: Form Filling with MCA
Documents will be attached to SPICe forms, SPICe-MOA and SPICe-AOA, along with the Directors’ and Specialists’ DSCs, and transferred to MCA for sanction. An organization’s PAN and TAN are generated upon fusion. For obtaining PAN numbers and TANs, separate applications are necessary.
Step 6: Issuance of Certificate of Incorporation
The Registrar of Companies (ROC) will issue the certificate of incorporation once confirmation is received.
- OPC Registration checklist
- One member only.
- A candidate must be selected before incorporation.
- The consent of the candidate should be obtained in Form INC-3.
- The name of the OPC should be selected as per the Arrangement of Companies (Incorporation Rules) 2014.
- Minimum sanctioned capital of Rs.1 lakh.
- Director DSC.
- Proof of the nominated office of the OPC.