ONE PERSON COMPANY (OPC) REGISTRATION
In a Private Company, a minimum of 2 Directors and 2 Members are required
One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act, 2013, a single person could not establish a company. If an individual wanted to establish his business, he/she could opt only for a sole proprietorship as there had to be a minimum of two directors and two members to establish a company.
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The quickest and hassle-free way of acquiring OPC Registration is through StartupYo.
OPC Registration has become an easier step for all businesses. However, it demands a lot of time and effort if done individually, and hence StartupYo eases the process by helping you with OPC registration.
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What is a One Person Company (OPC) ?
A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and 2 Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.
Overview of OPC Registration
A one-person corporation (OPC) is a business that has only one owner. Before the Companies Act of 2013 went into effect, only two people may form a corporation. If a person wished to start a business, he or she could only choose a sole proprietorship because a company could only be founded with a minimum of two directors and two members.
A business can be incorporated under Section 2(62) of the Company’s Act 2013 with just 1 Director and 1 Member. It is a type of corporation with fewer compliance obligations than a private corporation.
According to the Companies Act of 2013, a person can establish a business with just one member and one director. One person may serve as both the director and a member. Hence, a one-person company is a business that has the characteristics of a corporation and the advantages of a sole proprietorship and can be incorporated by a single person, who may be a resident or an NRI.
Steps to Incorporate an One Person Company
Step 1: Verify the eligibility and paperwork
Step 2 is to ask for DSCs and DINs from each director.
Step 3 is to submit a name reservation request.
Step 4: Apply for a PAN and TAN for your new business using the Spice+ form.
Step 5: The RoC issues a certificate of incorporation with a PAN and TAN.
Step 6: Begin your business and open a bank account.
In approximately 20 days, the entire procedure of registering a one-person business can be finished.
Features of One Person Company
Even though OPC only has one person managing all of the day-to-day operations, it offers alternatives for ongoing succession. The nominee can lead the business if a member of it passes away.
With a one-person firm, the member is only partially liable. OPC is considered as a separate legal entity because it is a registered company, giving its members greater protection. Members are not responsible for any losses incurred by the company because their responsibility is restricted to the value of their shares. In the event of bankruptcy, the company itself, rather than the company’s director, may be sued by creditors for accumulating the company’s debt.
Sole shareholder and directorship
In an OPC, a single member serves as the company’s director and is responsible for overseeing daily operations. An executive director is not necessary in this situation to manage the daily requirements. One member is more than enough and fulfils the obligations of a shareholder.
Possession of Property
The OPC is permitted to hold assets and business-related property in a person’s name because it is regarded as a separate legal entity. The assets, such as the machinery industries, homes, buildings, and other assets, cannot be claimed by another individual. The OPC is legally permitted to directly purchase property
Advantages Of OPC Company
The member accords the OPC the status of a distinct legal body. The OPC has a special legal standing that protects the only person who incorporated it. The member’s liability is restricted to the value of the shares that he or she owns; the member is not personally liable for the company’s loss. As a result, creditors may file a claim against the OPC rather than the member or director.
Simple Access to Finance
Due to the fact that it is a private firm, a one-person company in India can readily receive money through venture capital, angel investors, incubators, and other sources. Nowadays, getting money is easy.
The Companies Act of 2013 grants the One Person Company (OPC) some exemptions from certain compliance obligations. The cash flow statement need not be created by the OPC. It is not necessary for the company’s secretary to provide any annual reports or keep any books of accounts.
Also, a one-person corporation in India can be incorporated without any problems. The clearance for integration should come from a member who also serves as a director. No minimum paid-up capital requirement exists.
Easy to Manage
Allowing one person to locate and lead the OPC will simplify management of the organisation. The process of making decisions is simple and quick. By entering both ordinary and special resolutions in the minutes book and having just one other member to sign them, the member can quickly pass both of them. Managing the business won’t be difficult because there won’t be any internal conflicts or delays.
Even with just one member, the OPC can perform the eternal succession function. Upon incorporating the OPC, the single-member must select a nominee. In the case that a member passes away, the candidate will take over running the business
Types of One Person Company
A company can be
- A company limited by shares, or
- A company limited by guarantee, or
- An unlimited company
Documents Needed for OPC Company Registration
Digital transcription of an English rental agreement
Tenants typically receive hard copies of rental agreements. The authority must receive this scanned for documentation
A scanned copy of a property or sale deed in English (if the property is owned)
In real estate transactions, a sale deed is a legal document that serves as proof of the buyer’s purchase and the seller’s transfer of property ownership. The main ownership transfer documentation is this. The conveyance deed or final deed are other names for a sale deed.
A digital copy of a recent bank statement
Bank statements are available online via internet banking or in person at a branch. Other titles that are regularly used for them are account statements and transaction summary statements.
A phone bill, a mobile phone bill or an electricity bill
Typically, utilities expenditures include charges for power, gas, water/sewage, and garbage removal. Other services like internet, cable TV, and phone services are now viewed as standard in the majority of Indian families, however occasionally they are seen as supplementary utilities. The cost of utilities can vary significantly, mostly based on your location, the local climate, and your usage habits. These are therefore included in the submission of crucial documents for OPC registration.
Digital transcription of the no-objection certificate from the landowner
This letter comes from the person who owns the particular plot of property. Section 12 of The Companies Act, 2013 mandates that every corporation maintain a registered address for the corporation. The registered address is submitted as an attachment to the Spice+ form when a firm is incorporated in India. The ROC must be notified via Form INC-22 of any changes to the company’s registration address if the company’s address changes following incorporation.
Here are a few reasons why you should choose StartupYo for One Person Company
A. With the guidance of the professionals we will take care of all the formalities and complications on your behalf.
B. You would be given regular updates on the status of your license.
C. With our professional services, your license would be acquired within 10 days of registration.
D. As compared to the services provided in the market by other brands, we offer the most affordable and competitive price with a good support team.
The total number of shares that a company may issue to its shareholders is known as its authorised capital. A Company must pay the authorities an issued capital fee before issuing shares..
If the annual compliances are not met, the company becomes dormant and can eventually be struck off. It takes upto 20 years to be revived.
No, a person can only form one OPC at once. In an OPC, the nominee is also covered by this rule.
Even though both an OPC and a sole proprietorship have only one person or member, they operate in very different ways. OPC is treated as a company with limited liability and the ability to own assets and property. A sole proprietorship, on the other hand, lacks these characteristics. As a result, there is no perpetual succession in the business, and the sole proprietor bears infinite responsibility.
Slightly less money is spent on an OPC than on a private limited company. You’ll spend about ₹12,000 to incorporate, followed by about ₹15,000 per year in compliance fees and the cost of an auditor to review your financial records.
While submitting the document online, the DSC electronically confirms the sender’s or signer’s identity. Some of the application documents must be signed by the directors using their digital signatures, as per the MCA.
There are no general benefits, but some benefits that are industry-specific. In addition to the minimum alternative tax and dividend distribution tax, profits are subject to a flat tax of 30%.
A nominee is a person who joins the business in the event that the promoter passes away or is rendered incapable.
A minor, a foreign citizen, a Non-Resident, and any person incapacitated by contract will not be eligible to become a member.
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding one financial year.