The Companies Act, 2013 has paved the way for introduction of One Person Company (OPC) in Indian corporate world which it was eagerly waiting for. It is a legally sanctioned and chartered form of a Proprietary Business with limited liability to its sole shareholder. A resident individual who is an Indian citizen is entitled to start a One Person Company (OPC) with the name and objectives which he chose. It is a separate legal entity different from its sole promoter with limited liability.
Incorporation of One Person company
1.Formation of One Person Company
Only a natural person who is an Indian citizen and resident in India-
(a) shall be eligible to incorporate a One Person Company;
(b) shall be a nominee for the sole member of a One Person Company.
2. Formalities in incorporation
Incorporation is doing at the Central Processing Centre of Ministry of Corporate affairs at Gurgaon and will be under the jurisdiction of Registrar of Companies of the State where the registered office is situated.
Incorporation is comprised of following
A. Name Application and Approval
For obtaining the desired name for the company to incorporate, we have to apply to the ROC in specified form Spice+ and the processing may take 1 to 3 days and cost involved is Rs. 1000/- subject to the availability of name.
B. Obtain Digital signature
Since all the filing to the Registrar of companies is through on line, one of the promoter should obtain a Class 3 Digital signature which costs Rs.2000/-. The application for DSC is online and process is involved mobile Email and video verification. On successful verification of application the applicant will get DSC in a secure device called E Token
C. Submission of Composite Incorporation documents for obtaining Certificate of incorporation and DIN
Next step involved is preparation and submission of incorporation documents like memorandum of association and articles of association online portal of the Ministry of Corporate affairs
The following documents are required for online submission
For Director/shareholder/Director cum shareholder
For Registered office Address
The new directors will get DIN Number and Certificate of incorporation will be issued in 1 to 3 days. At the Completion of registration of the company, the Ministry will issue the Incorporation certificate along with PAN Card and Tan Number
Thus for incorporation of an OPC, it may take 4 to 7 days from the date of submission of proper documents for the registration of the Company.
D. Submission of AGILE Form for obtaining GST Registration ESI, EPF Professional Tax and Bank account opening
The Incorporation document comprise a mandatory online application form for applying for GST Registration ESI, EPF Professional Tax and Bank account opening.
GST registration is optional but other registrations are automatic. The applicant can select the Bank with whom they want to open their bank account in the Form Agile
E. Spice+ and AGILE form for Name application, DIN Approval and Filing of Incorporation Document and for Other Registrations
The Ministry has recently introduced a Composite form for filing DIN application, Name approval and Incorporation Documents, GST and other registration. If we are very confident about the name we can use this form for registration of company which will help to register the company with 4-7 days
3. Post Incorporation Compliances
After the Company is registered the Company is required to file INC form 20 A for commencement of business and to exercise borrowing powers. The subscribers has to deposit the subscription amount before filing the said form.
If you want our support for registering a One Person Company in a cost effective and professional way