Under the provisions of the Companies Act, 2013 – One Person Company (OPC) can be registered with a single person who can be the owner as well as the director of the Company.
Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has features of a Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business, then he or she should only opt for a sole proprietorship, but now he can register as OPC and enjoy the advantages.
BENEFITS OF ONE PERSON COMPANY
- Minimum Capital Requirement – For OPC incorporation, there is no minimum amount mentioned for the capital requirement. But the maximum capital authorized should not be more than INR. 50 lakhs.
- Perpetual Succession – In the case of an OPC, there will be a nominee who will be holding the position of the respective member and director after his death.
- Limited Liability – Another benefit annexed with the idea of incorporation of One Person Company is limited liability. This indicates that the limited liability of the authorized director is limited to such extent of capital contributed by him in the company.
- Greater Creditability – One Person Company is compelled to annually get their books audited. It will ultimately help increase the creditability of the business as well as consumer satisfaction.
- Fewer Compliances – The compliances which can be adhered for an OPC incorporation are lower when compared to any other company. Hence, the incorporation of an OPC may be carried out effortlessly that too, with minimal paperwork.
PROCEDURE OF INCORPORATION OF ONE PERSON COMPANY
- Application For Digital Signature Certificate – The first step is acquiring the Digital Signature Certificate (DSC) of the Director.
- Application for Name Approval – The next step while registering an OPC is to make your mind as to what should be the name of the Company. The name of the company should be in the form of “Electrical supply (OPC) Private Limited”. The name is approved in the form SPICe+ Part A. After the name application has been approved by the MCA we can go ahead with the subsequent step.
- Filing of Forms with MCA – All the required documents are to be attached to the SPICe Form, SPICe-MOA, and SPICe-AOA with the DSC(Digital Signature Certificate) of the Director, will be then sent to the MCA for approval.
- Details of Nominee – For incorporation of OPC, the details of the nominee are also required along with his consent to act as a nominee. The duly signed form INC3 is filed with Spice Part B for approval.
- Certificate of Incorporation of One Person Company –After the verification and approval, the Registrar of Companies (ROC) will issue a Certificate of Incorporation. The PAN and TAN have been generated automatically at the time of registration of the Company.
DOCUMENTS REQUIRED FOR OPC REGISTRATION
- Copy of the owner’s PAN, Aadhar, Photo, Email & Mobile Number
- Copy of Voter identity card/Driving License/ Passport
- Copy of Utility Bill (Electricity Bill, Gas Bill, or Water Tax Receipt of the Registered Office
- No-Objection Certificate from the actual owner
- Details of Nominee (PAN, Aadhar, Photo, Email & Mobile Number)
LIMITS FOR CONVERSION OF OPC TO PRIVATE LIMITED COMPANY
- Voluntary Conversion
Voluntary conversion into a private limited company is permitted after the expiry of two years from the date of incorporation of the OPC.
If the PUSC exceeds rupees INR. 50 lakhs or if its average turnovers exceed INR 2 crores then within two months, the OPC could convert into a private limited company.
- Mandatory/Compulsory Conversion
When an OPC has paid-up share capital that exceeds INR. 50 lakhs and the yearly turnover of immediately previous three consecutive financial years is more than 2 Crores rupees, then it is compulsory for the OPC to convert to a private or public limited company within a period of 6 months from the date when the paid-up share capital exceeded INR. 50 lakhs rupees or the last date of the related period in which the average annual turnover surpasses INR. 2 Crore rupees.
As you have now learned everything about a one-person company, it’s time to put your business dreams into reality. Everything in the procedure takes 10-15 working days( obtaining the necessary documentation, the application procedure, the name approval process), and finally, the registration of the OPC is done.
If you need help with the incorporation of a one-person company, we have got you covered. Team Udyog Buddy has been satisfying a lot of businesses. And now, we’ll help you get your registration process easier with our experts and professionals who are dedicated to providing a hassle-free and affordable registration experience. If you choose us, the whole process of incorporation gets more convenient and effortless. To avail of all the Company formation services and get an Edge Over Your Competitors Call/Whatsapp +91 9301789019 or email at [email protected].