The new concept emerged in the Companies Act, 2013 about the OPC Registration. Let us discuss the Private and Public company. The Private Company has a minimum of 2 Directors and members wherein Public company there exist 3 Directors and a minimum of 7 members. A Single person can’t able to register and run a company their own. In an OPC only one member and 1 Director are necessary as per section 2(62) of the companies act. The compliances are lesser than the Private Company.
The Process of Registration
One person company can register by using 6 steps. Let us discuss the process for OPC registration.
- Application submission for DSC
- The Director Identification Number requisition
- Application for Name Approval
- Documents requirements
- Filing the forms with MCA
- Registration certificate issuance.
Checking the name availability under RUN web service needs no prior requirements. Thus we can obtain the DSC and DIN easily. It can make effective by login in the MCA portal.
Let us discuss in details,
Apply for the DSC
Firstly, we have to obtain the DSC of the director and it requires the following attached documents.
- Address proof of the proprietor,
- Aadhaar card,
- PAN card,
- Photocopy of the proprietor,
- Email id and the
- Phone Number.
- Director Identification Number Application: After getting the DSC, it is mandatory to get the Director Identification Number for the Director. The application should be made in SPICe form with some documents like address proof and name of the director. If there is an existing company then the Form DIR-3 is available. But the January onwards each and everyone has to file the DIR-3 form. Up to 3 members can able to file in a single DIR-3 form.
- Application for name approval
The next important step to register an OPC is checking and selecting the name of the company. The name should be in the given format like “XYZ Private Limited”. There are 2 options to get the name approval. One is filing the Form SPICe 32 another one is using RUN Web service of MCA. The preferable name should contain an alternative name as an option. The ministry lately decides to submit two names for the company and one resubmission. After the name got the approval we can go with other steps.
Documents needed for the OPC registration
The following documents are mandatory to submit to the ROC. The memorandum of Association and the Article of Association.
MOA (memorandum of Association): These are certain types of objects followed by the company which is going to incorporate.
AOA (Articles of the Association ): The laws on the companies.
There should be only 1 director and 1 member. The nominee behalf of the director can get selected to deduct the space after the incapacitation of the Director. The nominee takes the place after the death of the director. His agreement on the position of nominee gets file along with the PAN card and Aadhaar Card.
The registered premises address proof with no objection certificate from the owner. It also requires the ownership proof also.
The affidavit and agreement of the proposed Director.
The affidavit should declare in Form INC -9 and DIR – 2 resp.
- Filing the Forms with MCA: The MCA portal requires the documents attached with the SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the director. Then waits for getting the approval. Then the Form 49A and 49B will get generated for the PAN and TAN of the company.
- Generation of the Registration certificate: After getting the verification from the Registrar of Business we can commence our business.
The person who is applying for the OPC Registration should be an Indian citizen and should not be the member or nominee of other such companies.
The minimum authorized capital should be Rs.1 lakh and there is no minimum paid-up capital. But the maximum paid-up should not exceed Rs.50, 000; the average 3 years of turn over should not exceed Rs.2 crore. If the above rules get infringed it will convert into Private Limited Company.
Advantages of One Person Company
There are certain advantages to register An OPC. The advantages are Limited Liability, Easy Funding, Perpetual Succession, Total Control, and Less Compliance
The financial liabilities of shareholders and the amount of investment made in the company by him/her are inversely proportional. Thus the OPC is a new experience for start-ups.
To approach other financial institutions other than banks, it is really helpful for the owners of an OPC, because they give preference to companies over proprietary firms.
The nominee gets the full charge when the owner didn’t liable to charge his duties due to death. Thus the effort of the nominee won’t get wasted.
The owner or the nominee gets the authority over decision making and implementation after the incorporation.
The compliance is lesser when compared to Private Limited Company. There are no requirements in the Annual general meeting. The general meeting in OPC is conducted by means of minute’s book. The Sole director simply adds the data to it and sign. It is considered to be meeting or exchanging data.
Compliance of OPC
The compliance in the OPC is
Income Tax Filing: Before each September’s 30th every OPC have to return the filings.
GST filing: the one person having GST Registration has required filing monthly, quarterly under the GST rule.
Filing of the TDS: the OPC must file TDS returns quarterly and are required to deduct tax as per the TDS rule.
All the companies registered under OPC and having ESI registration have to file ESI return. ESI registration is mandatory for the company having over 10 employees.
Make your OPC registration easily in Coimbatore with the leading business consultants named Solubilis. The incorporation process takes 5-8 working days. The process depends on the rules, company names, documents, etc. To make the project quick & easier choose a unique and coherent name for your company.