The One Person Company (OPC) is the newly incorporated type of a company which was introduced in the Companies Act, 2013. It is to support entrepreneurs who are capable on their own of starting a venture. It also allows them to create the single person entity to raise the economic. There is a requirement of only one, natural person resident of India who can be the member of OPC and also he will be director. As the name itself suggests it’s a company that is owned by one single person after obtaining One Person Company Registration. The OPC formation Procedure in India is requires complying with some important steps which are discussed briefly later.
Important Features of One Person Company
Read our article:Benefits of OPC (One Person Company)
OPC formation Procedure as per Rule 3 of Companies (Incorporation) Rules, 2014
Eligibility Criteria for OPC Registration Process
- The natural person only who is an Indian citizen and resident in India can be member and nominee of the OPC.
- A natural person must not be a member and nominee of more than a One Person Company at any point of time.
- Any minor is not allowed to become member or nominee of the OPC or can hold share with beneficial interest in such One Person Company.
- Such Company must not be incorporated or converted into a company under section 8 (Company with Charitable Objects) of the Companies Act.
- Such Company must not carry out Non-Banking Financial Investment activities including investment in securities of any other body corporate.
- No such company must be converted voluntarily into any kind of company unless 2 years is expired from a date of incorporation of the OPC except in the case if its falls under the mandatory conversion criteria.
One Person Company (OPC) Formation Procedure in India
- Obtain digital signature of the proposed member of the One Person Company.
- Name approval of Company via RUN (Reserve Unique Name) – As per with Rule 9 of the Companies (Incorporation) Rules, 2014, the application for reservation of name must be made by using Form RUN along with fee of Rs. 1000. Just Log in into MCA and have reservation of name by filing in a simple performa.
- No attachments required to be attached mandatorily while filing in RUN. However, it has been recommended to draft a submission letter to explain therein business objects of a proposed Company. It is noted that reservation of name and an application for DIN are available with the Form No. INC-32
- The name if allotted must be valid for a period of 20 days.
- Form No.lNC-32 (SPICe): For Incorporation Form INC-32 has to be filed with the Registrar along with the attachments which are as follows:-
- Declaration by professional in Form INC-8
- Declaration by all proposed member/nominee/Directors in Form INC- 9
- Consent to act as Director in the Form DIR-2
- Self attested copy of PAN of all the proposed member/nominee/Directors
- Self attested copy of driving license/voter ID card/passport of all the proposed member/nominee/Directors
- Self attested copy of the utility bill (not older than 2 months)/ bank statement of all the proposed member/nominee/Directors
- NOC (Non-Objection Certificate) from the owner of a proposed registered office along with utility bill (not older than 2 months) and also ownership proof such as municipal tax paid receipt, conveyance, sale deed, etc.
- File Form SPICe MOA and AOA with the Registrar pursuant to section 4 and section 5 of Companies Act, 2013 respectively. Further, the MOA of an One Person Company must obtain an additional clause i.e. nominee clause.
- After all the requirements, ROC will issue a certificate of incorporation in Form No. INC-11.
Important points to be followed before OPC Formation Procedure
- In case a paid up share capital of an OPC get exceeded to Rs.50 lakh or its average annual turnover of preceding 3 consecutive financial years exceeds to Rs. 2 crore, then s OPC will mandatorily required to convert itself into private or public company.
- One Person Company has to file a copy of financial statements as duly adopted by its member, along with all documents which are to be attached to such financial statements, within 180 days from the closure of the financial year.
- The provision of holding of the Annual General Meeting will not be applicable to OPC
- The OPC must hold minimum 2 Board meeting during the calendar year and 1 meeting in 6 months and gap between 2 meetings must not be more than 90 days.
- For the purposes of quorum, in case of a single Director, it will be sufficient the passed resolutions is entered in the minute’s book and signed and dated by such director.
OPC signifies the form of the Company that can be formed with just 1 Director and a Member whereas a Private Limited Company, which requires at least 2 directors and 2 members and The Public Company that requires at least 3 directors and 7 members. CorpBiz helps in requirement of compliance and consequent expenses are significantly reduced of the person forms One Person Company.
Read our article:Know all the Documents Required for OPC Registration