How to Register One Person Company (OPC) in India
Introduced by the latest Indian Companies Act of 2013, the One Person Companies (OPCs) are fast being popular for doing businesses in almost all economic fields. The most alluring and outstanding advantages of OPCs in India are separately listed in the section below. Businesses currently being run and managed under the proprietorship model can also be easily converted into this form, for gaining the great benefits of limited liability. Detailed and exclusive information over how to register opc in india as per companies act 2013, is provided below, to help entrepreneurs, professionals, industrialists, and investors.All about registering a One Person Company (OPC) in India is given in the following three sub-headings:
- Statutory Requirements
- Steps Involved
- Advantages of One Person Company
- Statutory Requirements:
The following are the main statutory requirements for one person company registration in any place of India:
- One Subscriber or Director
- One Nominee
- A Minimum Paid Up Capital of INR-100,000/- (One Lac)
- Copies of the PAN Cards of the Proposed Director and Nominee
- DIN and DSC of the Director
- Address Proofs of the Residences of the Proposed Director and Nominee
- Proof of the Location of the Proposed Registered/Head Office of the OPC
Both the proposed director and nominee of the desired one person company OPC to be established anywhere in India, must be an Indian citizen or a resident in India. The term "Resident in India" is used to mean that the person compulsorily and continuously spent at least 182 days anywhere in India during the immediately preceding calendar year. The nominee too must be a fully adult person (not minor), and should not hold any beneficial share in the concerned OPC. Again, the same one person cannot become the director of more than one OPC, or the nominee of two or more OPCs. The letters 'OPC' must be suffixed with the name of any one person company, to distinguish it from other forms of companies.
Here, it must be noted that any OPC cannot be incorporated as or converted into a Section-8 company, nor can it ever carry out any of the activities of the NBFCs. Lastly, an OPC mandatorily requires to lose its present status and immediately convert itself into a private or public limited company, if anytime its (OPC's) total paid-up share capital exceeds INR-50 Lac or its average annual turnover crosses INR-2 Crore in three immediately preceding consecutive years.
- Steps Involved:
- Obtaining Director Identification Number (DIN) through filing Form DIR-3.
- Obtaining Digital Signature Certificate (DSC)
- Filing Form INC-1, to Ascertain Name Availability and make Reservation of the same
- Filing Form INC-2, to get your OPC incorporated by the concerned RoC.
- Filing Form INC-3, the Nominee Consent Form
- Filing Form INC-22 [if the addresses of correspondence and the registered office are different]
- Acquiring the Certificate for Commencement of Business through Form INC-21.
The prescribed fees for filing these forms are given in Annexure 'B'. Form INC-2 must be filed within 60 days of filing Form INC-1; there is no provision for renewal of the reserved name. Form INC-22 is to be extended within 30 days of the incorporation of OPC. The provision of the Nominee Director (in opc company india) is made to safeguard the administration and management of the affairs of the OPC under mishaps like death or disability of the sole director.
- Advantages of One Person Company
The One Person Companies (OPCs) possess certain privileges and therefore, offer some very striking and impressive advantages to entrepreneurs, professionals, and businesspersons engaged in various economic fields. Some of the most outstanding advantages of OPCs, are the following:
- For formation of a One Person Company (OPC) in India, there is required only one person (an Indian citizen) as its director, with a minimum paid up capital of Rs.-100,000/- (Rs. One Lac).
- This OPC is maximally suitable to individual entrepreneurs or professionals for starting a business of their own, in the respective field of interest.
- Although OPCs are run and managed by individuals, these are separate legal entities like other corporate bodies.
- OPCs also offer the great advantages of limited liability
- The regulatory and annual compliances by OPCs are much less when compared to those by the private and public limited companies.
- The mandatory provision of the rotation of auditors after every five years, introduced by the Companies Act of 2013, is not applicable to OPCs.
- The provisions related with General Meetings of companies, as specified under the Section 98 and Sections 100 to 111, are not applicable to OPCs.
- How We will Help you for Registering One Person Company for You
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