What is one person company or OPC registration?

What is one person company or OPC registration?

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One Person Company or OPC Registration in Chennai, is a most recent child in the Incorporation Family, which was introduced by the Companies Act, 2013. This is the first time in India to enables one single member to get a company Incorporated through ROC.

Previous to this a single member can only form a Proprietorship form. Now after this act, the proprietor can for a OPC where he does not need another person as a Co-Director; where usually he will get his wife or mother as the co-director by allocating 0.01% Share.

If you want to start a new business or if you are about to change your Proprietorship firm to a company, here are the best options for you, which is nothing more than a One Person Company.

Here we are about to discuss many important details about the One Person Company and its registration process.

one person company or OPC registration in chennai

One Person Company which is shortly called as OPC, we, Le intelligensia are the best opc registration consultants in chennai. the most recent child of the Incorporation Family, which was introduced by the Companies Act, 2013. This is the first time in India that it allows a single member to incorporate a company through ROC.

Prior to this, a single member can only form a Proprietorship Firm. Now, after this Law is enacted, the owner can set up an OPC where he does not need another person as Co-shareholder; where, typically, in a private limited company, he will get his wife or mother as a partner by allocating a 0.01% share.'

OPC company registration in chennai is suitable for whom?

One Person Company registration in Chennai is more suitable for small entities or small businesses whose annual revenue does not exceed two Crore rupees.

The main restriction of the OPC company is that only an Indian citizen can incorporate an OPC company and foreign direct investment is not allowed in OPC. Also, if you are a shareholder of one OPC, you may not incorporate another OPC.

Taxation

There is no difference between a Private limited and OPC as realting to Taxation. The tax rate is flat 30% as applicable for any Company incorporated under Indian Companies Act.

What is the reason for introducing One Person Company Registration in India

1. Before introducing a One Person Company in India, only two people at least can form a Private Limited Company
2. So the promoter started inviting his wife or mother to form a company which is just for the sake of the name.
3. An owner who is a single person cannot form his own Limited Company
4. As Pvt Ltd needs a minimum of 2 directors, nominee directors must be appointed, so to avoid these difficulties the requirement of two shareholders and two directors has been changed.
5. Therefore, the above amendment in the company law paves the way for registering a company with only one director.

Minimum Requirements to form an one person company registration in chennai

1. One Shareholder: To register a one person company registration in chennai, The minimum and maximum number of members is one. There cannot be more than one shareholder in an OPC.??
2. Minimum one Director: To incorporate a One Person Company, it requires a minimum of one director and a maximum of 15 directors.?
3. Nominee: An shareholder cum director of a proposed OPC, must propose a person as his nominee. The nominee would?step into the shoes of the promoter and take up the management charges.??
4. Name of the proposed company: Every business entity should have a unique business name, in the same way even an OPC should have a unique Trade name. And the name should be approved by the Registrar of Companies.
5. Office address in India: Event One Person Company should have a registered office. The office premises may be a rental premises, leased property, shared space or even virtual office. As a proof of office address, rental agreement to be produced.?
6. Capital of the company: Every business must have some money for its operational expenses. To register an opc company registration in chennai, the authorized capital must be a minimum of 1 lakh, but there is no minimum requirement of Paid-up capital.??

What are the documents required for OPC Registration in India

For Shareholder and Director?

• ID proof of the Directors and shareholders : PAN card?
• Address proofs Directors and shareholders : Aadhar card?
• Residence proofs: Bank statement or Gas bill or phone bill

For the nominee?

• ID proof of the Nominee: PAN card?
• Address proofs Nominee: Aadhar card?
• Residence proofs of the Nominee: Bank statement or Gas bill or phone bill

For the Business Address Proof

• Rental agreement for the office premises
• A copy of the Property Tax receipt or Electricity Bill

Who cannot be a Shareholder of an One Person Company?

Foreign Nationals: A foreign national cannot be a part of One Person Company.?

NRI: Even an Non Residencial Indian who stays outside India cannot be a member or shareholder of a OnePerson Company

Already a Member of OPC: A person who is already a member of OPC cannot be a member of another OPC.

Artificial Entity: Only a natural person can be a part of One Person Company, so any other corporate or artificial entities cannot be a shareholder of an OPC

Key Benefits of registering as OPC

1. Exempted from General Body meetings:

Normally, a Private Limited Company has to conduct general body meetings, board meetings and other compliance, but an OPC is exempt from the AGM process, board meetings, and discussion on annual financial statements.

1. No minimum Paid-up capital:?

To incorporate a one-person company, a minimum of 1 lakh as authorized capital is required, but there is no minimum requirement for any paid-up capital, so we can start a One Person Company even with just Rs.5000 as capital. disbursed.

1. Just one member:

A One Person Company can be formed with just one Director and one shareholder. So it is easy for a proprietor to change his proprietorship firm to a Private Limited Company.?

1. Perpetual Succession:

The One Person Company is considered as an independent legal person, so the death or insolvency of the member of the opc will not affect the existence of the company. The company will continue to exist with the help of the nominee.

1. Huge status:

OPC is considered a corporate entity so it has a high status in society which will help attract more clients compared to a property.

6. Limited Liability:?

A Proprietorship Firm has unlimited liability, but the main advantage of the One Person Company Private Limited is that the shareholder’s liability is limited to the shares they have invested. Therefore, the shareholder’s personal property would not be affected by any loss or damage.

Registration process of OPC

Now you would have understood more about OPC and its benefits, in this part, we will see the procedure for registering the company.

Step 1: Name Approval

The main step towards registering a one-person company is getting name approval from the Registrar of Companies, shortly called the ROC.

The Government has launched a web service called RUN, which stands for Reserve Unique Name, through which we can easily get approval of the proposed company name.

A Digital Signature Certificate is not even required to submit the RUN Application.

Step 2: Obtain Digital Signature Certificate

As the registration process requires the submission of many forms online, we need to obtain DSC from an authorized dealer.

The Class 3 Digital Signature is appropriate for submitting the forms through the Portal of the Ministry of Corporate Affairs (MCA Portal).

So the second step towards OPC registration is to get DSC.

Step 3: Apply for Director Identification Number

Director Identification Number short called DIN, which is a unique 8-digit identification number assigned to each director of a company.

It must be obtained through the SPICe form for the first directors proposed in respect of new companies.

Step 4: Submission of Documents

MOA stands for Memorandum of Association, which is a document that outlines the goals of the company. In other words, the document that establishes the purpose of the business that the shareholders want to do.

AOA stands for Articles of Association which says about the by-lay of the company and the operations of the OPC is controlled by the by-law.?

The proof of shareholder and director to be submitted.Furthermore, the proof of the Nominee and along with that, form INC-3 which is a consent form to be submitted for appointment of an Nominee to be submitted along with the PAN and Aadhar card

Step 5: Issuance of Certification

After the presentation of all the documents before the MCA Portal, the Registrar of Companies will verify the same and, if all the details are correct, will issue the Certificate of Incorporation with a unique CIN Number.

Along with this, the PAN Card would even be delivered in the name of the Company.

Step 6: Obtain the statutory Licenses

Once the Company is incorporated, you need to obtain the mandatory licenses such as GST, Corporation License, product based licenses in order to run your business.?

Reason behind introduction of opc company name registration in chennai

1. Before introducing OPC, only two person minimum can form a Company
2. So the promoter stared inducting his wife or mother to form a company which is just for name sake.
3. A proprietor who is a simple person is unable to form his own Company
4. As Pvt Ltd needs minimum 2 directors, nominee directors are stared been appointed, so to avoid these fraudulent activity, the process of incorporation has been totally amended.
5. Hence for the above reason the amendment is the companies act is brought for incorporating a company with one director

Procedure for incorporating OPC registration in chennai

Mandatory Compliances for OPC

1. One Board of Directors meeting at least once in six months
2. Maintain a proper book of accounts
3. Statutory audit of financial statement
4. Filing of income tax for company

FAQs:-

For opc company name registration in chennai what is the Maximum number of directors?

There can be a maximum of 15 directors in a One Person Company. There should be atleast one Indian resident Director is mandatory.

How to convert OPC to Private Limited Company?

To convert OPC to?Private Limited Company

1. Pass a Special Resolution in the General Body meeting
2. The resolution to be submitted with proper forms before the respective Registrar of Companies
3. Apply for conversion through Form INC 6 along with necessary documents

OPC is suitable for whom?

Any proprietorship form which need to change its status as a corporate, can choose OPC as the business entity type

Any startup company with a minimum of Rs.10,000 can also start an OPC, because there is no minimum share capital requirement for an OPC.