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One Person Company (OPC)

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Overview:

With the introduction of the Companies Act, 2013 the concept of OPC (one person company) was introduced to support entrepreneurs who on their own are capable of starting a business by allowing them to create a single person economic entity. Only one single member is required to incorporate an OPC, which is the biggest advantage of OPC over private limited companies & partnerships. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, is easy to incorporate and continues in the foreseeable future.

This is a new concept introduced by the companies’ act 2013 and is available for a business with a capital up to Rs. 50 Lacs and a turnover up to Rs. 2 Crore. The one person company has some benefits in the companies act in terms of non-applicability of some provisions of the new act.

Procedure to be followed for starting OPC:

Minimum Requirement for OPC Document Requirement for OPC
·    Minimum One Person.

·    Minimum Capital shall be Rs. 100,000.

·    DIN for the opc person.

·    Digital Signature for one person.

·    Consent From the owner & nominee.

·    Proof of Registered Address.

·    NOC from the owner of premises.

 ·    Latest Colour Photo of the one person.

·    Pan Card of the all the one person.

·    Address Proof of all the one person, In case Premises is taken on Rent / Lease, Rent agreement will also be required.

·    Signature on the DSC Form.

·    Signature on Affidavit for DIN.

·    Signature on Consent form.

·    Signature on Subscriber Sheet.

1.  Obtaining DSC Likewise in every Company Registration, for OPC Registration as well, you are required to obtain DSC. You can use this DSC later for other purposes such as filing returns, ROC with compliances etc.
2.  Obtaining DIN The next important step after obtaining DSC is acquiring DIN of the proposed Director. One can apply for the DIN in SPICe form along with his/her KYC such as name and an address proof.
3.  Name Approval Choosing a name for the company plays one of the most vital roles in the company incorporation process. Therefore, one needs to ensure that the proposed name is unique and doesn’t hurt the sentiment of any religion, community, or anybody.

The applicant can propose a maximum of two names in SPICe Form 32 or by using RUN service on the MCA portal.
4.  Drafting of MOA and AOA The applicant needs to prepare and draft the MOA (Memorandum of Association) and AOA (Articles of Association) for the OPC registration. MOA explains the objective of the company while the AOA describes rights and duties, rules & regulations of the company.
5.  Filing of SPICe with MCA Attach all the documents including MOA and AOA of the company along with the SPICe form and upload it to the MCA site for approval. After you have uploaded, the website will generate Form 49A and 49B for the PAN and TAN generation of the Company. You need to upload these forms to MCA after affixing the Digital Signature of the Director.
6.  Certificate of Incorporation Firstly, the ROC (Registrar of Companies) will verify the documents. If it finds everything valid and satisfying, it will issue the Certificate of Incorporation to the applicant.