ONE PERSON COMPANY
What Is a One Person Company?
The idea of One Person Company (OPC) in India was introduced to give a boost to entrepreneurs who have great potential to start their own venture by allowing them to create a single person company.
One Person Company, which is relatively new concept in India, already sees a big boom. A huge impact on the economy and development of nation is expected. It gives opportunities to many and will therefore bring creative and young minds in front of everyone.
Section 2 (62) of the Companies Act, 2013 defines OPC as a company which has only one person as a member.
Documents Required
- PAN Card or Passport (Foreign Nationals & NRIs).
- Voter’s ID/Passport/Driver’s License.
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill.
- Passport-sized photograph.
- Specimen signature (blank document with signature).
Note: The director must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarized (if currently in India or a non-Commonwealth country) or apostatized (if in a Commonwealth country).
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill.
- Notarized Rental Agreement in English.
- No-objection Certificate from property owner.
- Sale Deed/Property Deed in English (in case of owned property).
Time Frame
After name approval, form SPICE shall be filed for incorporation of the OPC within 10 days from the data of approval of RUN.
Advantages of GST Registration
- Limited Liability
The directors’ personal property is always safe in a private limited company, no matter the debts of the business.
- Continuous Existence
Sole Proprietorships come to an end with the death of the proprietor. As an OPC has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
- Greater Credibility
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.
Minimum Requirement for OPC Registration In India
- 1 Person
- 1 Director
- 1 Shareholder
- 1 Nominee
Penalty for Non Compliance of One Person Company
If an OPC or any officer of such company contravenes the provisions of Co. Incorporation Rules, 2014, such contravening party will be punishable with fine which may extend to Rs. 10,000/- and with a further fine which may extend to Rs. 1,000 for every day after the first during which such contravention continues.
Procedure for Registration in India
- Apply for DSC
For OPC one has to apply for DSC, DSC is a Digital Signature Certificate which is necessary to file the one person company registration documents. DSC is used for filing documents at ROC.
- Obtain DIN
Once you obtain DSC, next step is to obtain the Director Identification Number of the proposed director.
- File the Name Approval Application
The next step for Incorporating an OPC is to choose a name for the company by adding a suffix “Pvt Ltd” behind the company name
- Drafting of MOA & AOA
Memorandum of Association (MOA) and Article of Association (AOA) are two important documents required for OPC registration. MOA describes the objects and power of the company, on the Other hand, AOA will detail about the Rights and duties, rules and regulations of the business. These Documents need Professional Knowledge & Research of the Law, so it is advisable to draft these documents with the help of professionals.