Description
The concept of one person company (OPC) is considered an innovative and vibrant type of business structure introduced in the Companies Act, 2013. With the intention of encouraging individual entrepreneurship, this act allows a single individual to incorporate and operate a company with limited liability. The most unique thing about this company is that it bridges the gap between sole proprietorships and traditional private limited companies, providing a legal structure that offers the advantages of both.
An OPC permits solo entrepreneurs to enjoy the benefits of corporate status without the complexities and burdens that are associated with a company with multiple members. As a company, it includes the provision of limited liability protection to the owner.
This article explores the essential elements of one person company, its formation, benefits, and legal requirements. By knowing the challenges of OPCs, aspiring entrepreneurs can make better and more informed decisions and guide them in establishing the way for success and growth.
One Person Company; Features:
Just like any other company, an OPC is also a separate legal entity, distinct from its members. This means that a company can acquire property, can enter into contracts, sue and can be sued by others in its own name.
Perpetual succession:This means that the company is an artificial person created by law. Therefore, to terminate or close it, only legal procedures must be followed. The company shall not be affected by the ongoing or incoming activities of its members or directors.
In OPC, there is a provision for appointing a person as a nominee. The sole member of the company must appoint a nominee.
Requirements for becoming a nominee:
Appointment of a nominee is essential in an OPC, as there is only one member in this company. Therefore, a nominee is appointed so that, in the event of the death or incapacity of the sole member, the nominee shall take care of the affairs of the company.
A minimum of one director shall be present for the incorporation of an OPC. However, the maximum number of directors in an OPC is 15.
“Additionally, a member of an OPC may also become the director of an OPC.”
The first step is to acquire the DSC and DIN of a person who wants to become director of the proposed company.
DSC is used to sign digital forms to make them valid and to authenticate documents. In OPC, the DSC of the nominee shall also be obtained for form-filling purposes.
DIN is used to mention the identification of the director in the forms as per MCA guidelines.
After obtaining DSC and DIN, the next step is to file the form for name reservation. A name can be filed through SPICe+ Part A, where a person can propose up to two names for his company. The form shall be submitted after filling in all the necessary details, including a fee of Rs. 1000/- on the MCA portal. The OPC shall use the suffix “(OPC) Private Limited” at the end of the company’s name.
After the name is approved by the MCA, we must file a form (SPICe+ Part B) wherein we mention all the necessary details and legalities of the proposed company. Necessary details of the company shall include:
Documents required for filing (SPICe+ Part B):
Form INC-32 shall be submitted along with the following forms:
Further, the consent of a nominee should also be attached.
Upload all the forms and documents and submit the INC-32 form along with the relevant fee as prescribed by the MCA.
The ROC will now verify all the forms and verify the details mentioned in the forms. If the ROC is satisfied, it shall grant a COI (Certificate of Incorporation). This certificate is considered a very important document, as it acts as conclusive evidence of the existence of the company.
Further, the PAN and TAN numbers shall also be allotted to the company by the time the company gets incorporated to comply with the provisions of the Income Tax Act. The PAN and TAN numbers shall also be mailed to the user at his registered email address.
It is mandatory for every company having share capital to file an INC-20A, within 180 days from the date of incorporation. It is also known as the (Declaration of Commencement of Business). The declaration must be filed by the directors of the company that the company has received the amount of paid-up share capital and is eligible to start its business.
The necessary documents that are needed to be attached along with INC-20A are:
Registration of EPFO (Employees Provident Fund Organization) and ESIC (Employees State Insurance Corporation) is to be done by the company if the limit is applicable to the company.
For ESIC, the limit on employees is ten or more than ten.
For EPFO, the limit on employees is twenty or more than twenty.
Though it is not an official part of post-compliance, it is one of the most essential parts after incorporation. Every company must open a bank account in the name of the company. As the company is a separate legal entity, it must have a separate bank account from its directors and members.
As the business environment continues to evolve, the one-person company remains a significant choice for solo entrepreneurs seeking to proceed with confidence and clarity in their plans. By utilizing the unique advantages of an OPC, individuals can utilize their capacity for entrepreneurship, which makes a meaningful impact in their respective industries.
If you still have any queries regarding OPC Registration, Logo Registration then you can connect to our experts team at info@compliancecalendar.in or call us at 9988424211.
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