OPC or one person company is one of the very fruitful changes brought down in a companies act 2013.
in simple terms as indicated by its name, According to section 2(62) of companies act 2013 one person company means a company which has only one person as a member.
Who Can Form OPC in India?
According to companies, incorporation rules 2014,
♦⇒only a natural person as defined under the act who is the Indian citizen and also resident in India shall form one person company India.
♦⇒Only a natural person as defined under the act who is an Indian citizen and also resident in India shall be the nominee of the one person company.
What Types of Benefits and Advantage available to OPC?
There are Numerous Benefits available to one person Company as per companies act,2013.
I would like to Quote some of the advantages to one person company.
♦⇒one person company provide the startup with new ideas.
♦⇒The benefits of limited liability. The most important reason for stockholders to incorporate the ‘single-person company’ is unquestionably the desire for the limited liability.
♦⇒one person company are not a sole proprietorship.thus,has a benefit of Dual Entity.
♦⇒On the Contrary a private limited or public limited company ,OPCs need not bother too much about various and hectic compliances.
♦⇒OPCs require minimal capital to begin with (Minimum share capital shall be Rs.1,00,000)
♦⇒As recognized corporate entity, one person company could well raise capital from others like venture capital financial institutions etc.
♦⇒Compulsory rotation of auditor after the expiry of the maximum term is not applicable One Person Company.
♦⇒The annual return of a One Person Company shall be signed by the company secretary, or where there is no company secretary, by the director of the company. •
♦⇒The provisions of Section 98 and Sections 100 to 111 relating to holding of Annual general meetings, shall not apply to a One Person Company. •
♦⇒A One Person Company needs to have a minimum of one director.
♦⇒The financial statements of a one-person company can be signed by one director alone.
♦⇒Cash Flow Statement is not a mandatory part of financial statements for a One Person Company.
♦⇒Financial statements of a one person company need to be filed with the Registrar, after they are duly adopted by the member, within 180 days of closure of financial year along with all necessary documents. •
Recommended Read:What is LLP? and How to Register LLP in india.
How To Register One Person Company (OPC) in India?
There is a very Simple and easy procedure to register one person company in India.
Here I am explaining step by step method to incorporate or form one person company in India required under law.
Step1. File An Application to obtain Director Identification Number (DIN) and Director Signature Certificate (DSC).
For incorporating a one-person company in India first you have to file an application in prescribed form to obtain Director identification Number (DIN) and also for Director Signature Certificate (DSC).
Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Director of the OPC. DIN and DSC can be obtained for the proposed Director within 6 to 8 days.
Step-2 .Search and Applied for Name Availability.
in the second step, you should have to applied for Name Availability whether the name submitted by you is available or not.
A minimum of one and a maximum of six purposes names must be submitted to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be accomplished in 5 to 7 working days.
Step-3. Incorporation of One Person Company.
After Choosing an available name and approved by the Registrar of companies (ROC),You should have to draft memorandum of association and articles of association and other Incorporation document Required by Ministry of corporate affairs (MCA).
Incorporation documents can be submitted to the MCA along with an application for incorporation.
After Payments of all required fees and stamp duty,Registrar of companies Verifies all the incorporation documents submitted.
it will take nearly 10 Days for approving an application.Ministry of corporate affairs will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.
After Verification process, ROC issue Certification of incorporation.
That’s it, friends.by following above steps you can form your one person company and start your new company.
IF YOU HAVE ANY ADVISE,QUERY OR ANY SUGGESTION ALWAYS FEEL FREE TO ASK.