What is One Person Company (OPC) or One Man Company?
Features of OPC
There are following salient features of a One Person Company:
- OPC is formed under two main categories –Company limited by guarantee and Company limited by shares.
- Company limited by shares shall have some requirements- shall have a minimum paid up capital of Rs 1 lac, prohibition to any invitation to private sectors for providing security to the company.
- Should be specified under a legal identity and a name under which the business will be carried on.
- The member of an OPC has to nominate a nominee with the written consent of the nominee and file it with the Registrar of the Company (ROC).
In order to start a One Person Company, you have to keep certain things in your mind and should be eligible enough to open your own company. Listed below are following eligibility criteria you need to fulfill before starting OPC:
- Only a natural person, who is a resident of India can form his own company
- You cannot incorporate or be the nominee of more than one OPC
- Your status of OPC will be lost if you fail to have a capital of Rs 50 lacs and an annual turnover of Rs 2 crore in 3 immediate preceding financial years.
- Nonbanking financial institutions are not permitted.
The registration process of One Person Company
In the first step you have to get the Digital Signature Certificate or DSC of the suggested Director for which you will need some documents-
- Aadhar card
- Pan card
- Address proof
- Phone number
After getting the Digital Signature Certificate, in this step you have to apply for Director Identification Number (DIN) of the suggested Director along with the name and address proof of the director. Form DIR 3 is only available for the already existing company.
Now in this step you have to get your name of the company approved. You have to apply for it after you decide the name and submit it to MCA. However there are two ways by which you can propose the name, one is making an application to form SPICe 32 or by using Run Web Service of MCA. You can apply for two names and one re-submission while reserving Unique Names for the companies. Once it is approved by the MCA, you can move on to the next step.
: Now you will need a few documents which will be submitted to the Registrar of Company (ROC)-
Memorandum of Association (MoA) – Objective of the company stating the agenda for which the company is going be to be incorporated.
Articles of Association (AoA) – Stating rules and laws on which the company will operate.
Sudden incapacity or death – If the director dies or couldn’t complete the course of his term, then a nominee would be appointed on behalf of the director who will perform his duties. For this, the consent of the director in Form INC-3 will be taken along with his Adhar card and Pan Card.
Proof of Ownership – Proof of NOC form of the owner, proof of ROC and proof of ownership.
INC 9 and DIR 2 – Affidavit and consent of the suggested Director of both the form INC-9 and DIR-2
Declaration for the compliance – A declaration by the professional certifying that all compliance have been made.
In this step, you need to attach all the documents listed above with the SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and the professional, <> and upload it to the MCA site for approval. After uploading, Form 49A and 49B will be generated for the PAN and TAN generation of the Company. You have to upload it to MCA after affixing the DSC of the suggested Director.
The Registrar of Company (ROC) will issue a Certificate of Incorporation after verification, and then you can start up your business.
Further Reading and links for documents: MCA