A new concept has been introduced in the Company’s Act 2013, about the One Person Company (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. A single person could not incorporate a Company previously.

One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act, 2013, a single person could not establish a company. Suppose an individual wanted to establish his business. In that case, 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.

As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and one member. It is a form of a company where the compliance requirements are lesser than that of a private company.

The Companies Act, 2013 provides that an individual can form a company with one single member and one director. The director and member can be the same person. Thus, a one-person company means one individual who may be a resident or NRI can incorporate their business with the company's features and the benefits of a sole proprietorship.

One Person Company (OPC) Registration Process

Step 1: Apply for DSC

The first step is to obtain the Digital Signature Certificate (DSC) of the proposed Director, which requires the following documents:

1. Address proof

1. Aadhaar card

1. PAN card

1. Photo

1. Email Id

1. Phone number 
   

Step 2: Apply for DIN

Once the Digital Signature Certificate (DSC) is made, the next step is to apply for the Director Identification Number (DIN) of the proposed Director in SPICe Form along with the name and the address proof of the director. Form DIR-3 is the option only available for existing companies. It means that with effect from January 2018, the applicant need not file Form DIR-3 separately. Now DIN can be applied within the SPICe form for up to three directors.

Step 3: Name Approval Application

The next step while incorporating an OPC is to decide on the name of the Company. The Company's name will be in the form of “ABC (OPC) Private Limited”.

The name can be approved in the Form SPICe+ 32 application. Only one preferred name, along with the significance of keeping that name, can be given in the Form SPICe+ 32 application. If the name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application.

Once the MCA approves the name, we move on to the next step.  

Step 4: Documents Required

We have to prepare the following documents, which are required to be submitted to the ROC:

1. The Memorandum of Association (MoA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.

1. The Articles of the Association (AoA) lays down the by-laws on which the company will operate.

1. Since there are only 1 Director and a member, a nominee on behalf of such a person has to be appointed because in case he becomes incapacitated or dies and cannot perform his duties, the nominee will act on behalf of the director and take his place. His consent in Form INC – 3 will be taken along with his PAN card and Aadhar Card.

1. Proof of the Registered office of the proposed Company along with the proof of ownership and a NOC from the owner.

1. Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2, respectively.

1. A declaration by the professional certifying that all compliances have been made.
   

 

Step 5: Filing of Forms With MCA

All these documents will be attached to the 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. The Pan Number and TAN have been generated automatically at the time of incorporation of the Company. There is no need to file separate applications for obtaining PAN numbers and TAN.

Step 6: Issue of the Certificate of Incorporation

On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation to commence our business.

 

Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you with a One-Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else, visit TAXAJ

 

Watch all the Informational Videos here: YouTube Channel

 

TAXAJ Corporate Services LLP

Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078

Contact: 8961228919 ; 8802812345 | E-Mail: connect@taxaj.com