Starting and registering a business is an essential step in being an entrepreneur. Also, choosing the right form is equally important. This article will tell you about a One Person Company, from now on referred to as OPC, how it is registered, and the documents required for its registration.
What is One Person Company?
OPC is a new form of business introduced by the Companies Act, 2013 interest presented for the potential entrepreneur who can enter into a corporate framework by registering as a One Person Company. At the initial stage, you will need one director and one shareholder, and further, you can increase to the number of directors and shareholders to the maximum of 15.
The main advantage of an OPC firm is that initially, one member is required to operate an OPC while in case of a Pvt. Company or LLP at least two members are needed. Apart from this, there are several other benefits as well. There are:-
- An OPC has a perpetual existence i.e.; it is never-ending.
- It has limited liability.
- Since only one member can start a company, it does not have any complications.
How to register a One Person Company?
The registration process of an OPC is straightforward and easy. Just follow the following requisite steps for the registration.
- The owner of the OPC is required to apply for a Digital Signature and Designated Partner Identification Number i.e., DPIN.
- The next step is, the owner should apply for the unique name of his company and get the approval for the same. The title should be unique; otherwise, your application will be rejected.
- Once the name is approved, the owner should file the subscription statement and the incorporation document.
- The fourth step is that they have to apply for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) by the Income Tax Department.
- Lastly, after all the steps mentioned above, the owner is required to prepare an OPC Agreement, which would say all the terms and conditions necessary for the establishment and working of the OPC.
- Once everything is done, the Certificate of Incorporation is issued.
What are the documents required for the OPC registration?
If you are going for the registration of a One Person Company, you are required to have the following documents:-
- Copy of the PAN card of the owner.
- A copy of the Adhar Card/ Voter ID of the owner.
- Passport size photograph of the owner
- Copy of the property papers if it is owned.
- A copy of the Rent Agreement and Landlord NOC, if rented.
- Lastly, the address proof of the owner can be established by submitting the Water bill, Electricity bill, etc.
There are specific minimum requirements for the registration of the One Person Company. These are:-
- One Director
- One Shareholder
- It is to be kept in mind that the Director and the Shareholder can be the same person.
- One Nominee
- The minimum share capital should be Rs. One Lakh.
I hope the post was easy to follow, and you were able to understand the process of Registration of a One Person Company in India.