A Comprehensive guide to One Person Company
The concept of One person Company was recently introduced with The Companies Act, 2013 understanding the advertisites of sole promoter. Prior to the intorudction of the concept of OPC there was a minimum requirement of having the two persons for incorporating the Private Limited Company. Due to which the sole member was not able to incorporate a company or was required to pool in second person forcefully. OPC is a business vehicle that can be incorporated with minimum 1 member. It offers multiple benefits for the owner like a limited liability, Perpetual Succession, legal entity etc. Moreover, the complaince requirement for OPC is less stringent as compared to other structures due to the presence of single manner. Through this blog we will be taking a look at the various apsects of guide to One Person Company.
Benefits of One Person Company
There are manifold benefits of OPC some of which includes-
- Only 1 member is required
- Limited Liability
- Perpetual Succession
- Less compalince as comapred to private limited company.
- Ease to form.
- Separate legal entity
In order to register any type of company in India, it is imperative for the owner to submit some Documents. In case of OPC following documents are required to be submitted-
- Copy of PAN Card
- Identity Proof (Voter Card, Passport, Driving License)
- Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
- Passport Size Photo
For Registered Office
- Ownership Proof (Electricity Bill, Gas bill, Electricity Bill, Mobile Bill)
- No Objection Certificate
The procedure of incorporating the private limited company and one person company is similar to a very large extent. However, there are some small differences due to the difference in member requirement. In order to start the proceudre of One Person company the one person is required to follow the below mentioned procedure-
Acquiring Digital Signature Certificate
The first step in the journey of registering an One Person Company (OPC) in India is to acquire the DSC of both the nominee and the member.
Obtaining Director Identification Number
Every person who desires to act as a Director of any company is required to obtain a unique identification number from the ministry. Thus, the director and nominee of the OPC are also required to obtain DIN.
With the introduction of RUN(Reserve unique name) form now the approval for a proposed company’s name can be sought in advance. The owner is empowered to give 6 name options in this form. If the ministry finds the name filed unique and appropriate it will grant the approval for it.
Filing incorporation Documents
After receiving the name approval the applicant must submit the consent of nominee director in INC-3, MOA and AOA, the document mentioned above and the declaration of the sole member.
The last step in the Journey of incorporating is obtaining a certificate of incorporation. If the registrar of companies is satisfied with the documents filed it will approve the documents submitted and provide a certificate of Incorporation. With COI your One Person Company is successfully registered in India.