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The OPC Registration in India was started as a concept under the Companies Act, 2013 which has the following features, a single person can form a company like a sole trader and also has all the features of a company.
The rationale for the introduction of one-person companies was to spur small business, and to legalize the MSME business entities. Concerning the legal obligations, current Indian Companies Act 2013 indicates that it is possible to establish a company with the minimum of one director and one member, but it is more interesting that the director and the member can be one person. Hence, OPC Company registration is one of the possibilities to create a limited liability company in India for one person. This is the criteria and steps which are followed for registration of one person company.
But before going for the OPC registration process, it is imperative to know the OPC formation process, requirements, and many other restrictions that accompany the OPC formation. This legal act contains very clear provisions that have to be met to be sure that the individual who provides the notification of the OPC meets the necessary requirements.
Legal Status: An OPC obtains a distinct legal personality, which benefits the particular person, who began the firm, since that particular individual is shielded from liability for the company’s losses.
Easy Fundraising: As OPCs are private entities they are in the position to organise funds from Venture Capitalists, Angels and Banks which proprietorship firms cannot do.
Reduced Compliance: With regard to the structural aspect, similar to the previous one, OPCs are provided with an exclusionary treatment in the occurrence of certain legal regulations of the Companies Act, 2013 due to the simplified administration responsibilities.
Simple Incorporation: It is in a dimension to be annexed at one package, one nominee and the said single member is the director. This form of business does not have a ‘paid-up capital hence, the incorporation of this type of business is easier.
Efficient Management: Since OPC is being handled by one person, there is quick decision making; this will minimize on the management issues that may affect the performance of the company while at the same time eliminating on conflicts that takes alot of time in making the most important decisions.
Perpetual Succession: OPCs have an aspect of perpetual succession; this implies the company will continue to exist even when it is just counting a single member.
In other words, OPCs have certain advantages, namely no or negligible liability, general overview in fundraising, less paperwork and regulations, simple formation and management of an OPC company and perpetual succession.
While OPCs offer advantages, there are also limitations:However, OPCs are not without limitations also:
Suitable for Small Businesses: The question is, OPCs are mainly suitable for small businesses because the latter can only join one. This in turn limits its ability to come up with more funds to fund new projects as the firm expands or where necessary in funding of new projects.
Restriction on Business Activities: But in case of OPCs there are restrictions regarding the nature of the activities that the company can pursue such as Non-banking financial investments and Charitable objects only. Therefore, the specific business activities in these directions are forbidden for the companies which can register an OPC company.
Ownership and Management: As for the ownership and management structures, OPCs do not make a split between the two because the sole member could also be the director. On this basis, it may lead to ethical dilemmas or concerns as to conflict of interest.
During the OPC for India, the government has introduced a fresh form name as well known as SPICe+(SImplified Proforma for Incorporating Company Electronically Plus) in place for the earlier forms for the formation of OPC company.
The OPC Registration process consists of two parts:The OPC Registration process covers the following two processes:
Part A: Hence, the first part of the SPICe+ form is concerned with the name approval of the company proposed and application for DIN or PAN for the proposed director.
Part B: The subsequent part called Part B is to offer incorporation related information. Here is information sharing including the share capital, the details of the director of the OPC and even the information regarding the shareholder together with the OPC registered office address.
The following steps fund the registration of OPC Online.
which is required to be undertaken in order to gain a Digital Signature Certificate.
Acquire a digital signature certificate (DSC) of the involved contemplated director of the OPC. In electronically signing very important documents, the DSC is used.
The following key activities need to be followed : The first among the steps involved in registering the company with the ACRA is to acquire the Director Identification Number (DIN).
Applicants proposed for director require getting the DIN from the Ministry of Corporate Affairs (MCA) if he has been assigned a number for being a director of the proposed company.
This entails to register the name through the ‘MCA’ website through the use of ‘SPICe+ Part A’. Ensure that none of the names you intend to use should be close to any already adopted by some other company or that you’re infringing on any trademarked name.
That is the formation of the memorandum and articles of association which is the fourth step to undertaking.
Preparing of the Memorandum of incorporation which is also called MOI of the company and the Articles of incorporation which is also called as AOI of the company. Some records contain aims and objectives of the organisation, as well as its rules and regulations within the firm.
Self-Generated Questionnaire (Anticipated Needs): Name: Age: Race: Gender: What do you expect would be your need from this project in the next five years? ; Possible Roles of Audience: Name: Age: Race: Gender: What do you think would be your role as an audience in this project in the next five years?
Apart from the documents mentioned above, kindly suggest the forms that are needed to register on the MCA for a One Person Company and then fill the necessary forms with the ROC. Among the documents that should be uploaded at the time of filing SPICe+ form include MOA and AOA, declaration, proof of the registered office, nominee appointment among others as may be prescribed by the MCA.
After all the compliance that is required for the application has been done and approved, the ROC will issue the certificate of incorporation and your one person company is formed. Amongst all of the above, one has to make a note of the fact that Incorporation leads to the simultaneous creation of both the PAN or the Permanent Account Number and the TAN or the Tax Deduction and Collection Account Number too, effectively coming down to the erasure of the need for at least two applications.
This Seal of Incorporation validates now your OPC and it can start its operations from this point in India.
Several essential documents must be prepared and submitted to the Registrar of Companies (ROC) as part of the One Person Company registration process:The following documents are required to be drafted and the filed with the (ROC for the registration of One Person Company:
Memorandum of Association (MoA)
Articles of Association (AoA)
The nominee’s consent shall also be attached along with Form INC-3 and PAN card and Aadhaar card of the nominee.
Proof of Registered Office
In this context, form INC-9 concerning the proposed director together with the declaration should be accompanied by the DIR-2 containing the consent in relation to the proposed director.
A written declaration by a legal practitioner concerning certain matters or actions, to the effect that such has been done as or in the manner or to the extent demanded by the LAW concerning a cause of action.
The following are basic and should be easily provided at the time of OPC registration of the firm.
If you need to register an OPC company, then Instabiz Filling is the organization of your choice. Since the time our team has been formed, we have assisted a large number of people with business establishment. We can assist you through the whole process of getting the relevant documents and to the Certificate of Incorporation.
Here are some reasons why you should choose us for your OPC company registration:
In other words, we endeavor to make professional OPC Company registration and Professional Private Limited Company and LLP registration as convenient and smooth as possible. To get started on your entrepreneurial path, please don’t hesitate to contract us today.
1. Utility Bill of Registered Office Address;
2. Proof of Ownership of Registered Office Address;
3. Copy of PAN & Aadhar as Identity proof of all Subscribers and Directors;
4. Copy of Utility Bill/Bank Statement as Address proof of all Subscribers and Directors;
5. Copy of Passport size all Subscribers and Directors.
| Type | Ownership | Liability | Compliance | Taxation |
|---|---|---|---|---|
| OPC | Single owner | Limited | Low | Same as individual |
| LLP | 2+ partners | Limited | Medium | Same as partnership firm |
| Pvt Ltd | 2+ shareholders | Limited | High | Corporate tax rate |
