One Person Company Registration Rules | legalraasta

One Person Company Registration Rules

Introduction

One Person Company (OPC), it is a company with only one member who acts as a shareholder as well as a director.  There can be more members to the company (not mandatory).One person company registration rules are mentioned below, kindly go through the rules for simple registration.

  • OPCs are different from the others that only it requires only ‘One person’.
  • It is mandatory to declare a nominee (not a minor) with the consent of both the parties.
  • Citizen and Resident of India are eligible to incorporate an OPC in India.
  • Certain relaxations to OPCs in comparison to Pvt. Ltd. Companies.

Requirements for One Person Company Registration rules

  1. Shareholder (Member)

  • One person company can have only one member.
  • The member should be of Indian nationality and resident of India.
  • Only an individual can become a member, not any other firm/ LLP/company.
  1. Nominee Shareholder (Member)

In the case of death/incapacity to contract, it is required that owner of OPC chooses a nominee. Only one person can become a nominee that will further become the owner of the OPC (should be an Indian citizen).

  1. Directors

The owner must appoint at least one Director. OPC can have any number of directors. Proposed Director(s) must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs (MCA).

  1. Company Name

The name of an OPC consists of 3 parts:

  • The Name
  • Activity
  • Private Limited (OPC)

The proposed name shall end with words ‘Private Limited (OPC)’. ‘Proposed Company name is to be approved by the Registrar of Companies.

  1. Registered Office Address

A temporary address is required at the time of registration of the Company. This temporary address could be of any of the Directors.

After registration, the company has to file the permanent business address with documents of proof of address, ownership etc.

  1. Company Objects

Objects of the OPC refer to the proposed business activities. These Objects provide the direction to the company.

OPC objects should be legal and should not harm the society. The name of OPC shall also signify the main, prerequisite objects. If the name of the OPC is not describing a particular object, then the OPC can have multi-faceted objects.

  1. Digital Signature Certificate (DSC)

All documents are filed online with Registrar of Companies. Digital Signature Certificate (DSC) has to be verified by the authenticity of the document. Hence, all the documents should be authenticated by using a Digital Signature Certificate of the Director.

  1. Professional Certification

Services of professionals such as Chartered Account (CA), Company Secretary (CS), Cost Accountant is required to make necessary Certifications and declarations for incorporation of a One Person Company (OPC).

Note: According to Companies Act, if the company’s annual turnover crosses Rs. 2Crores then it has to be converted into a Private Limited Company.

OPC Registration with Form INC-29

The Ministry of Corporate Affairs (MCA) has introduced Form INC-29 to simplify and speed up the process of company registration in India. Since

Steps as follows:

Step 1: Digital Signature Certificate

This certificate is issued by Certifying authority. The director of OPC should submit these documents:

  1. Signed Digital Signatureapplication form;
  2. Self-attested copies of PAN card;
  3. Address proof like Aadhaar card/ driver’s license/electricity bill etc.

Note: The DSC can be obtained by submitting the signed digital signature application form. It takes 1 to 2 working days to get the certificate.

Step 2: Prepare Incorporation Documents

List of documents required for filing Form INC-29 as follows:

  1. Declaration
  2. Memorandum of Association (MOA)
  3. Articles of Association (AOA)
  4. Proof of registered office address
  5. Copies of utility bill like (Telephone/Electricity bill)of registered office address (not more than 2 months old)
  6. Affidavit
  7. Identity and address proof of the main Director and the nominee director (BOTH)

 Step 3: Prepare Form INC-29

With the application for Digital Signature Certificate (DSC), the owner should submit the documents for the Form INC -29 (as mentioned in step -2).It is better that a Director should have a DIN number required in the INC-29 form.

In case, Directors do not have DIN Number then Director has to fill the application form. In such cases, documents required are:

  1. Personal Details of the Director including E-mail Address, Residential address, PAN card Number, Occupational Details and Educational Qualification.
  2. Passport Number ( for a Foreign National)
  3. Identity Proof like Driving License/Voter ID Card/Aadhaar Card/Passport etc.
  4. Address Proof includes Electricity Bill/ Bank Statement/ Mobile Bill Telephone Bill (not older than 2 months)

Once the necessary documents are ready, Form INC -29 will be submitted to the MCA along with Digital Signature of the Company Secretary (CS), Chartered Accountant (CA) etc.

Step 4 – Incorporation Documents to be attached with Form INC-29

Following documents should be signed by director/subscriber and attached with form INC-29.

Documents signed by the directors as follows:

  1. Articles of Association (AOA)
  2. Memorandum of Association (MOA)
  3. Affidavit and declaration by first Subscribers and Directors.
  4. Proof for Registered Office Address like Sale Deed/Rental Agreement.
  5. Copies of a utility bill of the registered office address (not older than 2 months).
  6. No Objection Certificate (NOC) from the trademark applicant or owner in case the proposed name is similar or identical to filed or registered trademark.

Step 5: File for Incorporation

Documents required the field to the MCA are as follow:

  1. Form INC-29;
  2. The digital signature of a financial professional (CA/CS/CWA/Lawyer) should be there on INC-29 form and;
  3. The digital signature of the main Director.

Step 6: One Person Company Registered

The Registrar of the company will provide Certification of Incorporation for an OPC if all the documents are according to the Companies Act 2013.

If there is any error in INC-29, re-submission of form with all necessary changes desired within 15 days of rejection is to be filed again to the MCA.

One person company registration rules are simple if all the documents are ready. We at LegalRaasta, can help you with these complex rules and make your company formation a simple procedure.

 

By |2018-10-29T09:17:33+00:00July 22nd, 2017|Company Article|0 Comments

About the Author:

Himanshu Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Himanshu is a CFA (US) & MBA (ISB). He has over 8+ years of corporate / consulting experience with top firms like McKinsey

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