The One Person Company (OPC) is a relatively new concept added in Section 2(62) of the Company’s Act 2013. An OPC has one director and one member. Earlier, a single individual couldn’t incorporate a company. The compliance requirements are less cumbersome than a private company.
A natural Indian citizen and resident in India (stay not less than 182 days) can act as a member and nominee of an OPC. The tax rate of an OPC is 30%. Also, MAT & Dividend Distribution Tax is applicable. The OPC has to change to a private or public company if the paid-up share capital is more than 50 lakh or the average annual turnover of the last 3 financial years is more than 2 crores.
Mandatory compliance requirement includes at least one Board meeting in each half of calendar year with a gap not less than Ninety days, maintenance of books of accounts, statutory audit of financial statements, filing of business income tax return every year before 30th September and filing of financial statements in Form AOC-4 and ROC Annual Return in Form MGT 7.
A minor, Foreign citizen, Non-Resident, and any person declared unfit by contract is not eligible to become a member.
When an OPC gets incorporated, it cannot convert itself to a Private or Public company before two years from the date of Incorporation. Subsequently, one can apply for converting itself to a Private Limited Company or Public Limited Company. The Conversion process should adhere to the Companies Act, 2013 under Section 18, and Rule 7(4) of the Companies (Incorporation) Rules, 2014.
OPC Registration Process
OPC registration involves applying for DSC, DIN, and name approval with required documents and filling forms with MCA, and obtaining a certificate of Incorporation.
Proof of the Registered office of the proposed company, proof of ownership, and a NOC from the owner are needed. Affidavit and consent of the proposed Director of Form INC -9 and DIR – 2, needs to be submitted. Also, a declaration by the professional certifying that all compliances are incorporated.
The documents will be attached to simplified proforma for incorporating a company (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.
Once uploaded, Form 49A and 49B will be generated for the PAN and TAN of the Company which should be uploaded to MCA after attaching the DSC of the proposed Director.
On verification, the Registrar of Company (ROC) will issue a Certificate of Incorporation, and one can commence the business.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
