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One Person Company Registration
An One Person Company is the newest form of business in India introduced for the first time by the Companies Act, 2013. Only one person is needed to start a company. However, a nominee needs to be nominated. To start an OPC you should check below sections describing eligibility requirements and detailed stepwise procedure.
The One Person Company is suitable for small businesses where the turnover is not likely to cross Rs. 2 Crores and the maximum amount of capital to be invested is limited to Rs. 50 Lac. An OPC can have more than one director. However one of them must be an Indian Resident. The main limitation of OPC form of company is that only an Indian Citizen can open an OPC Company and FDI is not allowed in one person company.
Basic Requirements to register a OPC
Procedure for Registering a One Person Company
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- Two Color Photographs of Promoter/Nominee
- PAN Card of Promoter/Nominee
- Identity Proof (Voter ID / Driving License / Passport)
- Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill)
- Proof of Registered Address
- Utility Bill as Proof must be latest
- NOC from the Owner of the Premises
Frequently Asked Questions
Since only one person is the shareholder of the OPC hence, hence at the time of incorporation of a one-person company, any other person is nominated as the nominee with their consent.
For OPC Formation in India, following are the forms on which promoters need to sign, All the forms/formats to be printed on plain A-4 size paper and signature should be preferable with a blue ink pen.
- DIR2 – Consent of Director
- INC9 Declaration of Promoter
- INC-9 A Declaration under Companies Act, 2013
- Subscriber Sheet of MOA & AOA
- Consent of the Nominee
A One Person Company is incorporated with a physical address to be declared as the registered office of the newly registered OPC. Following are the list of the document which is acceptable as proof of premises where the registered office of the company is situated. The premises proof should not be older than two months.
- Electricity Bill
- Gas Bill
- Telephone Bill
- Mobile Bill
- NOC from the owner
A registered office is required to be declared at the time of company incorporation and to be maintained by the company under section 12 of The Companies Act, 2013, which must be capable of receiving and acknowledging all communications and notices as may be addressed to it. Further, the statutory records of the company also need to be maintained at the registered address of the company. Hence having registered address at coworking space is not acceptable unless this is a lockable area.
The OPC Can have an average turnover of Rs. 2 Crores for three years if the turnover exceeds the limit then the same need to mandatorily convert as a normal company.
The OPC Can have an average turnover of Rs. 2 Crores for three years if the turnover exceeds the limit then the same need to mandatory convert as a normal company.
Limited Liability implies that the owner or shareholder of the One Person company is not personally liable to pay debts of the business. They are only responsible for the unpaid shares of the capital of the company. To qualify, the shareholder needs to comply with all laws and pay taxes on time.
Apart from the concent of Limited Liability as explained above a company have the following significant features
- The company will continue to exist, no matter how many directors, officers, and shareholders join or leave.
- A Company can Sue and be Sued in its name.
- A legal entity like a company has a separate identity from its owners or shareholders.
- The private limited companies receive financial assistance from banks and financial institutions, but it receives the preferred rate of interest.
- Like a person a private limited company can purchase, sell, own, possess, enjoy and transfer property rights to anyone in its name.