What is the Process of One Person Company Registration in India?

 

One Person Company Registration in India

One Person Company Registration offers some distinctive features that distinguish between a one-person company and Pvt. Ltd. company, Limited liability partnership, and other similar businesses. An individual forms a one-person company, and like other forms of business structures, it does not need a minimum of two members to form it.

Overview of One Person Company Registration

The enactment of Companies Act 2013 introduced a new concept of One Person Company. One Person Company is defined under section 2(62) of the Companies Act, 2013, as a company formed and managed by an individual who acts as director and shareholder at the same time. One person company registration has less compliance as compared to Pvt. Ltd. Company. One person company is commonly preferred by entrepreneurs over sole proprietorship in the initial stage of the business because one person company registration offers various benefits that are not available in any form of business structure. An individual forms a one-person company, and like other forms of business structures, it does not need a minimum of two members to form it. 

Necessary Documents for One Person Company Registration

One Person Company registration has less compliance, but to accomplish it, an individual must collect the following documents:

Identity Proof

The proposed director and nominee has to submit an identity proof. The director and nominee can submit their Aadhar card, voter ID card, PAN card, driving license, etc. as identity proof for obtaining registration.

Also Read: Choose Sales Negotiation Training to Boost Customer Satisfaction

MoA and AoA

Memorandum of Association (MoA) and Articles of Association (AoA) are the most essential documents to be submitted during the OPC registration process. In the MoA and AoA, all the company's objectives are highlighted, and a company has to follow both the documents for the smooth functioning of the company.

Consent of Nominee

As mentioned above, for one person company registration, one director and one nominee are required. In case of any unfortunate events, the nominee has to authority to become the director of the company and to manage the business so that the business is not affected by this. The nominee has to give consent. The nominee's consent is filed via form INC-3. The nominee has to submit his/her Aadhar card and PAN card.

Affidavit of Nominee and Director

The proposed nominee and director have to submit their affidavits. Under the form, INC-9 and DIR-2 director and nominee can submit their affidavits.

Residential Proof of The Office

The resident proof of the company's registered office where the business activities are conducted must be submitted at the time of registration. A residence proof can be any utility bill such as telephone bill, electricity bill, water bill, etc. but it should not be older than 2 months. The utility bill must be attached to the proof of ownership. If the registered office is on a rented premise, then the No Objection Certificate (NOC) from the landlord and the rental agreement must be submitted.

PAN Card

The designated director and nominee have to submit a certified copy of their PAN cards at the time one person company registration.

Photograph

The designated director and nominee have to attach two passport size photographs with the form and submit them at the time of registration.

DSC

Digital Signature Certificate (DSC) is an essential document for the registration process. DSC will be required to sign a document on the digital platform while submitting the documents to the concerned authorities.

DIN

Directors Identification Number (DIN) is another essential document required to be obtained by the company's director. DSC is a unique identification number provided to the director of the company.

Also Read: What Is a Partnership Deed?

One Person Company Registration Process

One person company registration is an online procedure. The process is governed by the provisions of the Companies Act, 2013.

Following are the steps for one person company registration:

Apply for DSC

Digital Signature Certificate (DSC) is used for signing documents on an online platform; it has the same value as a physical signature. The director of the company has to obtain DSC. Digital Signature Certificate can be obtained from nearby agencies. The fee for obtaining DSC depends on the agency.

Application to Obtain DIN

The director of the one-person company has to obtain Directors Identification Number. DIN can be filed along with the form of SPICe+. The director has to provide his/her name and residential proof. Directors Identification Number is a unique identification number.

Company’s Name Approval

After the director has obtained DIN and DSC, now he/she have to decide the name of the company. The Ministry must approve the name of the company of Corporate Affairs. The prescribed format for the name of one person company is "XYZ (OPC) Private Limited."

Re-check All the Documents

Before submitting the documents, an applicant must recheck all the documents for any mistakes and make sure that all the necessary documents are collected in the prescribed format. If the authorities find any document missing or a document is not as per the prescribed format, the authorities will reject the registration application. So it is the applicant's duty to make sure that the details of the PAN card match the details of the other documents, and if there is a need to change, then the applicant can make changes before submission.

Submission of Forms

After the applicant has uploaded all the documents, Form 49 B and Form 49 A will be generated for the company's TAN and PAN. Applicants can use these forms to file for PAN and TAN of the company. PAN and TAN will be used by the applicant to open up a bank account in the name of the company.

Certificate of Incorporation

After the applicant has uploaded and availed PAN and TAN of the company, the concerned authorities will verify the documents and the information provided by the applicant. Once the verification is done by the authorities and the Registrar of Companies (RoC) is satisfied by the application forms and documents, the certificate of incorporation of the company will be issued, which will contain CIN number.

Conclusion

The enactment of Companies Act 2013 introduced a new concept of One Person Company. One Person Company is defined under section 2(62) of the Companies Act, 2013, as a company formed and managed by an individual who acts as director and shareholder at the same time. One Person Company Registration offers some distinctive features which make a distinction between a one person company and Pvt. Ltd. company, Limited liability partnership, and another similar form of business.

Post a Comment

0 Comments