One Person Company Startup
OPC in India
The concept of 1 Person Company in India was introduced by Dr. Jamshed J. Irani in his Report on Company Law dated 31st May, 2oo5 . As per the report, Dr. Irani recommended that with the increasing use of data technology and emergence of a robust service sector in India, it had been time for the govt to empower entrepreneurs who on their own are capable of developing ideas and participating within the marketplace. He suggested that entrepreneurs who on their own are capable of starting a venture shouldn't be made to try to to it through an association of persons, and will be ready to create one person economic entity within the sort of ‘One Person Company’. Further, it had been also suggested that such an entity could also be given an easier regime through exemptions in order that the only entrepreneur isn't compelled to spend his time, energy and resources on procedural matters.
Eligibility
To incorporate a personal Ltd. a minimum of two persons are required over the age of 18 years with atleast one person being an Indian citizen and resident.
OPC Registration
OPC Registration
One Person Company (OPC) allows one Entrepreneur to work a company entity with indebtedness protection. Register a OPC online at just Rs.9899.
OPC Requirements
- Only a natural one that is Indian Citizen and resident in India can incorporate OPC.
- Resident in India means an individual who had resided in India for a period not lesser than 182 days within the prior civil year .
- Legal entities like Company or LLP cannot incorporate a OPC.
- The minimum authorised capital is Rs 1,00,000.
- A nominee must be appointed by the promoter during incorporation.
- Businesses involved in financial activities can't be incorporated as a OPC.
- OPC must be converted to a personal Ltd. when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.
Nominee in One Person Company
The rules for incorporation of 1 person company requires that the only member of a 1 Person Company should include the name of a nominee within the Companies MOA, who will undertake the entity after the expiry or incapacity of the previous . Moreover, the document must contain the written consent of the nominee, which must even be filed with the Registrar during incorporation along side the MOA and AOA.
Incorporation Process
The process for incorporation of a 1 Person Company are often divided into four steps as under:
Obtaining Digital Signature
Obtaining Name Approval
Incorporation Filing
- Commencement of Business
Benefits of 1 Person Company
Till the introduction of 1 Person Company in India, the indebtedness and Continuous Existence feature was only available to an association of persons like a personal Ltd. or indebtedness Partnership or a Ltd. . With the introduction of 1 Person Company, the indebtedness and continuous existence feature is now also available for One Person Company, which is an entity with only one member. together Person Company has only one member, it's necessitated by the law for the only member of the corporate to designate another person within the Memorandum of Association, who on the event of subscriber’s death or incapacity shall become the person to contract. This mechanism provides an adequate safeguard to make sure continuous existence of the entity even just in case of incapacitation of the only member.
Nominee in One Person Company
The rules for incorporation of one person company requires that the sole member of a One Person Company should include the name of a nominee in the Companies MOA, who will undertake the entity after the expiry or incapacity of the former. Moreover, the document must contain the written consent of the nominee, which must also be filed with the Registrar during incorporation along with the MOA and AOA.
Withdrawal of Consent
The nominee is entitled to withdraw his/her consent, during which case the only member is required to nominate another member as a legal heir within 15 days of the notice of withdrawal. The nomination of latest personnel must be intimated to the corporate through a written consent in Form INC-3. the corporate , in turn, is required to file the notice of withdrawal of consent along side the intimation of the new nominee with the Registrar in Form INC 4.
The sole member of a ‘One Person Company’ is empowered to vary the nominee of the corporate for any reason whatsoever, by providing notice in writing to the corporate . Again, the new nominee must consent to the nomination in Form INC 3, and therefore the Company must file the notice of change and consent of the nominee with the Registrar along side the applicable fee, within 30 days of receiving the intimation of change.
If a nominee becomes in-charge of the one person company thanks to the cessation of the first member’s term due to the death or incapacity of the latter, the new member must appoint a nominee as a replacement.
If a 1 Person Company or a politician of such Company isn't compliant with the required regulations, the entity or the officer will incur penalties which might be as high as Rs 10,000. Further, the penalty are going to be increased by a fine of Rs 1,000 for every day of default.
Incorporation Process
The process for incorporation of a 1 Person Company are often divided into four steps as under:
Obtaining Digital Signature
Obtaining Name Approval
Incorporation Filing
Commencement of Business
Name Availability
In parallel to the Digital Signature applicaiton, the appliance for name reservation are often submitted to the MCA. Name approval applications are processed by the MCA in 24-72 hours. The name suggested must conform to the naming standards, and therefore the name of the OPC must end or include the words (OPC).
Obtaining Digital Signature
Digital signature certificate must be obtained for the only promoter and therefore the nominee for processing the incorporation. Application for DSC would require passport size photos of the applicant, identity proof and address proof.
Commencement of Business
Once the incorporation certificate is obtained, Once the checking account is opened, the promoter must deposit the quantity mentioned within the MOA of the corporate .
Once, the equity capital is infused into the Bank’s current account; the corporate can file for the commencement of business with the MCA. Commence of Business certificate must be obtained with 180 days of incorporation to avoid a penalty.
Commencement of Business
Commencement of Business
Lease deed or Rent agreement along side rent receipts.
Copies of utility bills as described above that aren't older than 2 months
A proof that the corporate is allowed to use the address because the registered office of the corporate if an equivalent is owned by the other entity or Person and isn't taken on lease by Company
Finally, just in case notice of things associated with registered office wasn't filed during incorporation, it must be filed after incorporation within 30 days. Documents required for filing INC-22 are:
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Premium
All Inclusive Fees
RS9899/-
OPC Registrations,Two DSC,1 DIN,1 Name Approval.
1 Lakh Authorized Capital.
Incorporation Fee,stamp duty,
MOA, AOA, incorporation certificate, PAN, TAN, GST registration, ESI & PF Registrationhard-copy share certificates, incorporation kit, commencement of business certificate.
Compliance
After Registration Accounting & Audit Rs. 18950 / Year