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Legal and Financial services in the most transparent environment at affordable rates, while opening global business opportunities for experts like Advocates, CA, CS, etc. What is one-person company (OPC)?
• One Person Company has been defined in the Section
2(62) of Companies Act • The concept of the one-person company was brought to India by the Companies Act 2013, to assist the entrepreneurs who on their own are capable enough to start a venture allowing them to create a single person economic entity. • One person company is a Separate Legal Entity • A one-person company has only one person as to its member. Members of a company are the subscribers to its memorandum of association or its shareholders . What is the eligibility criteria for the incorporation of OPC?
1. The entrepreneur desirous of incorporating an OPC must be a citizen of India and
resident in India. 2. A nominee is compulsory to be selected by the promotor while the process of incorporation 3. The minimum authorized capital must be Rs 1 Lakh. 4. Minors, foreign citizens, any person incapacitated by contract cannot be members of an OPC 5. If the paid-up share capital exceeds Rs 50 lakhs or if the turnover is above 2 crores OPC must be converted to private limited company. 6. Legal entities like LLP and company cannot be an OPC. 7. No person is permitted to register more than 1 one-person company. Documents required for the registration of a OPC Below are the documents required: These documents are to be given by the director:- • PAN card or scanned copy of passport (foreign nationals, NRI) • Scanned copy of passport, voter ID or driving license. • Copy of current bank account, phone or mobile bill, electricity or gas bill. • Passport size photographs • Signature or thumb impression • Memorandum of Association • Articles of Association • Affidavit and consent of the proposed director Documents need to be self-attested. In case of an NRI and a foreign national, the documents have to be compulsorily notarized. Procedure for registration of OPC 1. The first step is to obtain a DSC, the director would require documents for address proof (Aadhar Card, Pan Card etc.) It is mandatory because all company registrations nowadays are done digitally. 2. The director has to fill the SPICe form to avail Director Identification Number. The details like name and address proof of the director have to be submitted here. In situations where a company already existed, FORM DIR-3 has to be filed. 3. The name for company registration can be approved either the RUN web service of MCA (ministry of corporate affairs) or Form SPICe32. A preferred name with signature has to be given. The ministry will decide to approve that name. The company’s name once approved shall affix private limited at the end for example XYZ (OPC) PVT. LTD. 4. To complete the OPC registration, the above-mentioned documents will have to be attached with the SPICe form, SPICe-MoA and SPICe-AoA along with DSC. 5. Once the verification of the documents uploaded is done, the REGISTRAR OF COMPANIES will issue a certificate of incorporation. Thereby, the business shall commence. Compliances needed to be followed post OPC registration Yes, post OPC registration there are certain compliances which are as follows: • Minimum 1 board meeting has to be held in 6 months. The time gap between meetings shouldn’t be less than 90 days. • The books of accounts have to be maintained properly. • Statutory audit of financial statements has to be done timely. • Income tax returns have to be filed every 30th September. • Financial statements in Form AoC-4 and RoC annual return in Form MGT7 have to be filed. What are the advantages of having an OPC? The following are its advantages: -
1. Separate legal entity
2. Can have more than 1 director but shareholders cannot be more than 1 3. Easy funding 4. OPC is not affected by the death of a member 5. OPC is effortless to set up and maintain 6. Under OPC liability of the members is restricted 7. There is not much paperwork required for registration and incorporation 8. OPC enjoys no interference from third parties. How Taxolawgy can help you register a One Person Company?
1. Connects you with quality experts
2. Provides you with the best services at affordable prices 3. Ensures 100% Transparency; i.e. no hidden costs or additional fees 4. Maximizes ease via online services 5. Reduces service timeline through minimum paperwork Taxolawgy
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