In this article, we will discuss how to register One Person Company (OPC) in India and the necessary documents required for the registration process. An OPC is a type of company that can be established by a single person. The features of a company, such as perpetual succession, limited liability, and a separate legal entity are absent in OPC. Before the enforcement of the Companies Act, 2013, it was not possible for a single person to establish a company.
If an individual wanted to establish their business, they could opt only for a sole proprietorship as there had to be a minimum of two directors and two members to establish a company. Thus, One Person Company is a business that has the features of a company and the benefits of a sole proprietorship and can be incorporated by an individual who may be a resident or NRI.
In a Private Company, a minimum of 2 Directors and 2 Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members are required. However, as per Section 2(62) of the Company’s Act 2013, an OPC can be formed with just 1 Director and 1 member. The same person can be the director and member. It is a form of company where the compliance requirements are lesser than that of a private company.
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How to register One Person Company in India?
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is a form used to register One Person Company in India. It replaces the earlier forms required to incorporate a company, including the earlier SPICe form.
SPICe+Form can be filed online through the Ministry of Corporate Affairs (MCA) portal. The Form consists of two parts:
- Part A: This part is used to obtain company name approval, and to obtain the proposed director’s Director Identification Number (DIN) or Permanent Account Number (PAN).
- Part B: This part is used for details such as the registered office address, share capital, details of the director, and details of the shareholder, which are incorporation related.
What are the documents required to register a OPC?
The documents required for One Person Company Registration:
- PAN card of the director and shareholder
- Director and Shareholder’s Aadhaar Card
- Passport size photograph of the director and shareholder
- Address proof of the director and shareholder
- The owner of the registered office’s NOC
- Registered office’s rental agreement (if it is a rented property)
- The registered office’s utility bills (not older than two months)
- MOA and AOA of the company
- DSC of the director and shareholder
- DIN of the director
Want to know more about documents required for registering OPC.
How to register One Person Company?
Procedure to register One Person Company online in India through the MCA portal involves the follow the steps.
- Step 1: Obtain Digital Signature Certificate (DSC):
- A Digital Signature Certificate (DSC) is obtained for the company’s proposed director and shareholder. It is used to sign electronic documents and is a digital signature.
- Step 2: Obtain Director Identification Number (DIN):
- Next, a Director Identification Number (DIN) is obtained for the proposed director of the company. It is a unique identification number issued by the Ministry of Corporate Affairs (MCA) to the directors of a company.
- Step 3: Name Reservation:
- A unique name for the company is reserved. Apply to the MCA portal by submitting Form SPICe+ (Part A). The name should not resemble the name of any existing company or trademark.
- Step 4: Preparation of MOA and AOA:
- The Memorandum of Association (MOA) and Articles of Association (AOA) of the company should be prepared and filed with the Registrar of Companies (ROC). The company’s objectives are specified by the MOA, and the company’s internal rules and regulations are specified by the AoA.
- Step 5: Filing of Forms:
- The filled form is submitted online, along with the necessary documents and the prescribed fee. The ROC will process the application.
- Step 6: Issuance of Certificate of Incorporation:
- Once the ROC approves the application that satisfies all the requirements, ROC will issue a Certificate of Incorporation, after which your company will be registered.
One Person Company is a good option for small entrepreneurs who want to start their businesses with limited liability protection. It usually takes 7-10 days to register One Person Company through the SPICe+ Form.
Conclusion
In conclusion, register One Person Company in India is a streamlined process facilitated through the SPICe+ form, which can be submitted online on the MCA portal. The key documents required for OPC registration include a PAN card, Aadhaar card, photographs, address proof, NOC for the registered office, and MOA/AOA. With simplified compliance requirements and the ability to be formed with just one director and one member.
FAQs
1. Which act introduced the concept of OPC in India?
The Companies Act of 2013 introduced the concept of OPC in India.
2. How many Directors and Members are required to start a Private company, Public company and OPC?
In a Private Company, a minimum of 2 Directors and 2 Members are required.
Whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members are required.
As per Section 2(62) of the Company’s Act 2013, an OPC can be formed with just 1 Director and 1 member.
3. What is DSC?
A DSC or Digital Signature Certificate is obtained for the company’s proposed director and shareholder. It is used to sign electronic documents and is a digital signature.