Can a Proprietor form an organization with limited liability and perpetual succession options? The companies Act, 2013 has given an affirmative answer to this question. Yes, now an individual can form a one person Company under the companies Act, 2013.Ministry of corporate affairs brought the registered form of single person company through companies Act. Only one person is required to form an OPC private limited and the person is responsible for the affairs of the company. Only a natural person who is an Indian National residing in India is eligible to form the OPC. The natural person shall not be a member or nominee in more than one OPC company. Solubilis makes your registration process as simple and easy without any erroneous
Characteristics of One Person company Registration:
Liability of the member is limited
OPC has a perpetual life span
There is no minimum capital requirement.
There is no public subscription
To be converted into private limited if the turnover exceeds Rs 2 crores or capital of the company goes up 50 lakhs
OPC should mention their company name suffix as “(OPC) Private Limited”.
Nominee is required.
Proposed company is required to have registered office.
Authorised and Paid capital to be decided.
The subscriber and Director required to have a DSC (Digital Signature Certificate)
The Directors required to have a DIN (Director Identification Number)
Proposed director & Shareholder - Indian Citizen:
Proof for Address – Bank Statement or Telephone Bill or EB or Mobile Bill (Latest)
Passport Size Photo.
Register Office documents:
If the Office is rental, rental agreement is inevitable
Electricity bill (Not more than two months old required to be submitted)
A Occupant needs to provide a No Objection Certificate from landlord to operate the business (NOC) if not rented.
Step 1: Name application:
An application for reservation of name of the company with the registrar of companies to be filed. Applicant is allowed to provide two names and one re-submission.
Step 2: Name Approval / Rejection:
On receipt of the application, CRC (Central Registration Centre) may either approve or reject the application.
Step 3: Application for DSC
Digital Signature Certificate to be obtained for all the subscribers and directors of the company
Step 4: Preparation of MOA & AOA
Every company must draft the MOA and AOA, and it’s a mandatory to attach the digital signature certificate in both documents.
Step 5: Forms and Documents Filing:
Application for Registration of private limited to be filed along with MOA and AOA, if any, and other requisite documents and fees.
Step 6: Certificate of Incorporation:
On being satisfied, the registrar of companies (ROC) shall issue the certificate of incorporation, will be allotted DIN (Director Identification Number), PAN – (Permanent Account Number) and TAN (Tax Deduction Account Number)
To operate a small business, without the limitation of sole proprietorship can pick the option of One Person Company. It comes with limited liability and separate legal existence. Only one person is enough to run this business.
Natural Person and resident Indian citizen is the basic eligibility to start an OPC. Nominee should be a citizen of India and resident of India. There is no minimum capital requirement.
Share capital should not be exceeding 50 lakhs and turnover will not be more than 2 crores. In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
Voluntary conversion of OPC into Private limited / public limited company is not permitted till completion of two years from the date of incorporation of the OPC. Voluntary conversion need to be filed within 30 days
As per Companies Act - One Individual is legally allowed to operate an OPC. A single person who is operating more than one OPC is not permissible.
Member of a One Person Company can change the nominee at any time by informing the One Person Company in writing. The Sole member needs to obtain the prior consent of the new nominee in Form INC 3. The One Person Company shall on the receipt of such intimation, file with the registrar and a notice of such change within 30 days of receipt of intimation of the change in Form INC 4 along with fee.
A nominee may withdraw his consent anytime by giving a written notice to the OPC and Sole Member/Subscriber.
A minimum of one is required while starting a One Person Company, but you can have up to 15 Directors for your OPC
A Minor, Foreign citizen, Indian Non-resident, a person incapacitate to contract are restricted from Forming a One Person Company.
No, no other persons than an Indian citizen or a Resident in India, can register a one person company anywhere in India. This means, a non-resident Indian (NRI), or a foreign national, cannot set up an OPC in India.