One person company registration
The introduction of OPC in the legal system is a move that would encourage corporatization of micro-businesses and entrepreneurship with a simpler legal regime so that the small entrepreneur is not compelled to devote considerable time, energy, and resources to complex legal compliances. This will not only enable individual capabilities to contribute to economic growth but also generate employment opportunities. One Person Company of sole-proprietor and company form of business has been provided with concessional /relaxed requirements under the Companies Act, 2013. With the implementation of the Companies Act, 2013, a single national person can constitute a Company, under the One Person Company (OPC)concept.
As per provision of section 2(62) of the Companies Act, 2013 defined (62) “one person company” means a company that has only one person as a member.A single promoter has full authority over the company and he will be the sole shareholder and director of the company. However, if a one-person company has an average turnover of Rs. 2 crores for three consecutive years, it has to be converted into either a private or a public limited company within six months.
Advantages:
- Limited liability: In a one-person private limited company, only business investment is lost, personal assets of the directors are safe.
- Separate Legal Entity: The limited liability of the members enables the creditors to sue the OPC and not the member.
- Better image: One Person Company is a popular business structure that Corporate Customers and Vendors prefer to deal with over proprietorship firms.
- Easy to raise funds: A one-person company is very easy to manage as there is no need for Annual General Meetings and other compliances.
- Completely controlled by a Single Owner: This makes it easier to take quick decisions and also execute them.
Formation of OPC [Rule 3]
- Only a natural person who is an Indian citizen and resident in India-
- shall be eligible to incorporate a one Person Company;
- shall be a nominee for the sole member of a One Person Company.
- The term “resident in India” means a person who has stayed in India for a period of not less than 182 days immediately preceding one calendar year.
Procedure for Registration
- Obtain the Digital Signature Certificate (DSC) of the proposed Director.
- Apply for the Director Identification Number (DIN) of the proposed Director in SPICe Form along with the name and the address proof of the director.
- Name Approval Application: The next step is to decide on a name for the company by making an application in Form SPICe 32.
- Documents Required to be submitted to the ROC:
- The Memorandum of Association (MoA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.
- The Articles of the Association (AoA) lays down the by-laws on which the company will operate.
- A nominee on behalf of such a person has to be appointed because in case he becomes incapacitated or dies and cannot perform his duties the nominee will perform on behalf of the director and take his place. His consent in Form INC – 3 will be taken along with his PAN card and Aadhar Card.
- Proof of the Registered office of the proposed Company along with the proof of ownership and a NOC from the owner.
- Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2 respectively.
- A declaration by the professional certifying that all compliances have been made.
- Filing of Forms With MCA: All these documents will be attached to the SPICe Form, SPICe-MOA, and SPICe-AOA along with the DSC of the Director and the professional, and will be uploaded to the MCA site for approval.
- Issue of the Certificate of Incorporation: The final step is that ROC will issue a Certificate of Incorporation and we can commence our business.
Salient Features of One Person Company
- One person cannot incorporate more than one OPC or become a nominee in more than one OPC.
- No minor shall become a member or nominee of the One Person Company or hold shares with beneficial interest.
- No such company can convert voluntarily into any kind of company unless 2 years have expired from the date of incorporation, except in cases where capital or turnover threshold limits are reached.
- It must have only one member at any point in time and may have only one director.
Prohibited Activities
- Such a Company cannot be incorporated or converted into a company under section 8 of the Act. Unless and until Where the paid-up share capital of a One Person Company exceeds Rs. 50 lacs or its average annual turnover exceeds Rs. 2 crores immediately preceding three consecutive financial year
- Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
Service Inclusions
Professional Fees
Service Exclusions
GST, Government Fee, and other Additional Taxes
Process followed by White Code Legal:
- The Client has to register themselves on our website.
- Once the Client is registered, we raise a Service Request.
- The Client receives a proforma invoice with an option to confirm and pay now or pay later
- Once the Client confirms, our dedicated relationship manager liaisons with our experts, and clients share a list of client information required to deliver the service.
- Once we receive the information, we take the required steps to deliver the service and the service request is closed.
Why White Code Legal?
At White Code Legal we prioritize and always strive to deliver excellence. Keeping the focus on maintaining affordable prices and delivering 100% client satisfaction we aim to make worth of every penny our clients spend with us, and build a lasting relationship with them.
