The concept of One Person Company [OPC] is a new vehicle/form of business, which was introduced by The Companies Act, 2013 [No.18 of 2013], thereby enabling the Entrepreneur(s) to carry on the business in the Sole-Proprietor to form of business to enter into a Corporate Framework.
One Person Company is thus a hybrid of a Sole-Proprietor and a Company form of business, and it has been provided with the concessional/relaxed requirements under the Act.
This article will tell about the steps which are to be followed to incorporate a one-person company.
Only one shareholder:
- Features of One Person Company (OPC)
Only a natural person, who is an Indian citizen and a resident in India shall thus be eligible to incorporate a One Person Company.
- Nominee for the shareholder:
The Shareholder shall thus nominate another person who would become the shareholders in case of death/incapacity of the original shareholder. Such nominee shall thus give his/her consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and a resident in India shall thus be considered to be a nominee for the sole member of a One Person Company.
- Director :
The company is required to have a minimum of One Director, the Sole Shareholder can thus himself be the Sole Director. The Company may, however, have a maximum number of 15 directors.
Steps to be followed to Incorporate One Person Company (OPC)
- The director is firstly required to obtain a Digital Signature Certificate [DSC] for the proposed Director(s).
- He is then required to obtain a Director Identification Number [DIN] for the proposed director(s).
- Thirdly, they are supposed to select a suitable Company Name and then make an application to the Ministry of Corporate Office for the availability of name.
- The fourth step is to Draft a Memorandum of Association and the Articles of Association [MOA & AOA].
- The fifth requirement is to sign and file various documents of the One Person Company including MOA & AOA with the Registrar of Companies electronically.
- The director is required to pay the requisite fee to the Ministry of Corporate Affairs and also as Stamp Duty.
- The seventh step is to scrutinize the documents at the Registrar of Companies [ROC].
- Lastly, he is required to obtain the receipt of Certificate of Registration/Incorporation from ROC.
What are the advantages of OPC Registration?
Board Reports for OPC and Small Company