{"id":17825,"date":"2020-10-13T12:50:04","date_gmt":"2020-10-13T07:20:04","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17825"},"modified":"2025-03-03T18:53:14","modified_gmt":"2025-03-03T13:23:14","slug":"an-outlook-on-opc-formation-procedure-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/an-outlook-on-opc-formation-procedure-in-india\/","title":{"rendered":"An Outlook on One Person Company (OPC) Formation Procedure in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">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\u2019s a company that is owned by one single person after obtaining <a href=\"https:\/\/corpbiz.io\/one-person-company\" title=\"One Person Company Registration\"><strong>One Person Company Registration<\/strong><\/a>. The OPC formation Procedure in India is requires complying with some important steps which are discussed briefly later.  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Important Features of One Person Company <\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"595\" height=\"343\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-46.png\" alt=\"One Person Company \" class=\"wp-image-17826\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-46.png 595w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-46-300x173.png 300w\" sizes=\"(max-width: 595px) 100vw, 595px\" \/><\/figure><\/div>\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/\">Benefits of OPC (One Person Company)<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">OPC formation Procedure as per Rule 3 of Companies (Incorporation) Rules, 2014<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Eligibility Criteria for OPC Registration Process<\/h3>\n\n\n\n<ul>\n<li>The natural person only who is an Indian citizen\nand resident in India can be member and nominee of the OPC.<\/li>\n\n\n\n<li>A natural person must not be a member and\nnominee of more than a One Person Company at any point of time.<\/li>\n\n\n\n<li>&nbsp;Any minor\nis not allowed to become member or nominee of the OPC or can hold share with\nbeneficial interest in such One Person Company.<\/li>\n\n\n\n<li>Such Company must not be incorporated or\nconverted into a company under section 8 (Company with Charitable Objects) of\nthe Companies Act.<\/li>\n\n\n\n<li>Such Company must not carry out Non-Banking\nFinancial Investment activities including investment in securities of any other\nbody corporate.<\/li>\n\n\n\n<li>No such company must be converted voluntarily\ninto any kind of company unless 2 years is expired from a date of incorporation\nof the OPC except in the case if its falls under the mandatory conversion\ncriteria.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">One Person Company (OPC) Formation Procedure in India<\/h3>\n\n\n\n<ul>\n<li>Obtain the <strong><a href=\"https:\/\/corpbiz.io\/dsc-registration\" title=\"DSC Registration\">digital signature<\/a><\/strong> of the proposed member of the One Person Company.<\/li>\n\n\n\n<li><strong><em>Name approval of Company via RUN<\/em><\/strong> <strong><em>(Reserve Unique Name)<\/em><\/strong> \u2013 As per with Rule 9 of the Companies (Incorporation) Rules, 2014, the application for reservation of name must be made by using <strong>Form RUN<\/strong> along with fee of Rs. 1000. Just Log in into MCA and have reservation of name by filing in a simple performa.<\/li>\n\n\n\n<li>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 <strong>Form No. INC-32<\/strong><\/li>\n\n\n\n<li>The name if allotted must be valid for a period of 20 days.<\/li>\n\n\n\n<li><strong><em>Form No.lNC-32 (SPICe):<\/em><\/strong> For Incorporation Form INC-32 has to be filed with the Registrar along with the attachments which are as follows:-<\/li>\n<\/ul>\n\n\n\n<ol>\n<li>Declaration by professional in <strong>Form INC-8<\/strong><\/li>\n\n\n\n<li>Declaration by all proposed member\/nominee\/Directors in <strong>Form INC- 9<\/strong><\/li>\n\n\n\n<li>Consent to act as Director in the <strong>Form DIR-2<\/strong><\/li>\n\n\n\n<li>Self attested copy of <strong><em>PAN<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Permanent_account_number\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> of all the proposed member\/nominee\/Directors<\/li>\n\n\n\n<li>Self attested copy of driving license\/voter ID card\/passport of all the proposed member\/nominee\/Directors<\/li>\n\n\n\n<li>Self attested copy of the utility bill (not older than 2 months)\/ bank statement of all the proposed member\/nominee\/Directors<\/li>\n\n\n\n<li>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.<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>File <strong>Form SPICe<\/strong> MOA and AOA with the Registrar pursuant to <strong>section 4 and section 5<\/strong> of <strong><em>Companies Act, 2013<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> respectively. Further, the MOA of an One Person Company must obtain an additional clause i.e. nominee clause.<\/li>\n\n\n\n<li>After all the requirements, ROC will issue a certificate of incorporation in Form No. INC-11.<\/li>\n<\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Signed INC-3- It noted that all details as required must be filled in Form INC-3 and after check form, take out the print of the form and sign it. The same will be required to be enclosed as attachment in eForm INC 32 (SPICe).<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Important points to be followed before OPC Formation Procedure<\/h3>\n\n\n\n<ul>\n<li>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.<\/li>\n\n\n\n<li>One Person Company has to file a copy of <a href=\"https:\/\/corpbiz.io\/learning\/basic-financial-statements\/\"><strong>financial statements<\/strong><\/a> 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.<\/li>\n\n\n\n<li>The provision of holding of the <a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>Annual General Meeting<\/strong><\/a> will not be applicable to OPC<\/li>\n\n\n\n<li>The OPC must hold minimum 2 <a href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/\"><strong>Board meeting<\/strong><\/a> during the calendar year and 1 meeting in 6 months and gap between 2 meetings must not be more than 90 days.<\/li>\n\n\n\n<li>For the purposes of quorum, in case of a single Director, it will be sufficient the passed resolutions is entered in the minute\u2019s book and signed and dated by such director.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>OPC signifies the form of the Company that can be formed with just <strong><em>1 Director and a Member<\/em><\/strong> whereas a <a href=\"https:\/\/corpbiz.io\/company-registration\" title=\"Private Limited Company Registration\"><strong>Private Limited Company<\/strong><\/a>, which requires at least <strong><em>2 directors and 2 members<\/em><\/strong> and The Public Company that requires at least <strong><em>3 directors and 7 members.<\/em><\/strong> <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> helps in requirement of compliance and consequent expenses are significantly reduced of the person forms One Person Company.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-one-person-company-registration-online\/\">Know all the Documents Required for OPC Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":17827,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[157],"tags":[1100],"acf":{"service_id":"4"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":5992,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17825"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17825"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17825\/revisions"}],"predecessor-version":[{"id":68992,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17825\/revisions\/68992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17827"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}