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 the 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 have to submit 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.
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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 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 a 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.
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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
Director's 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 has
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 with the
application forms and documents, the certificate of incorporation of the
company will be issued, which will contain the CIN number.
Conclusion
The enactment of the 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, a Limited liability partnership, and another similar form
of business.
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