An OPC or One Person Company is a fusion of sole
proprietorship and company, making a new legal arrangement wherein a company
can be registered with just a single associate. The sole member of an OPC or
One Person Company acts as both the director and shareholder of the
organisation.
A business is registered as One Person Company or OPC to
give it features of a sole proprietorship, with the limited liability and
different legal identity of a company. The legal formation of One Person
Company was introduced by the Companies Act, 2013 to make it simpler for tiny
businesses and start-ups to start a company in India. Section 2(62) lays down
the definition of One Person Company as a company which has just one person as
a associate. A corporate lawyer must be consulted to register a one person
company.
One Person Company Registration
There are many legal formalities under corporate laws to
register One Person Company in India. The legal process to register a one
person company is:
I. Obtain a Digital Signature Certificate: Digital signature
is an encrypted-electronic signature that can be used to attest electronic
documents. As a director, the owner of a one person company must obtain a
Digital Signature Certificate to formations of
one person company. All Papers to get a Digital Signature Certificate
include- Aadhaar card, PAN card, address proof along with an email id and
contact number.
II. Obtain the Director Identification Number (DIN): To
register the One Person Company, a DIN or Director Identification Number must
be acquired through Form DIR-3. Along with the DIR-3 form, a copy of address
proof and name of the director must be attached.
III. Get the Name of Company Approved: The name of the
business must be decided and sent for approval to the Ministry of Corporate
Affairs in Form INC-1. A total of 6 names are given in the special order to the
MCA for approval. An owner can only proceed to register a One Person Company if
the approval for a name is obtained from the MCA.
IV. Documents Required for One Person Company Registration:
To register a One Person Company (OPC), the following documents must be
submitted to the Registrar of Companies:
Memorandum of Association (MoA), which states the objectives
and aims of the company.
Articles of Association (AoA), which states the bylaws which
will be followed by the corporation.
A nominee must be appointed through a From INC-3 for the
director in case the director dies or becomes incapable to perform his duties.
Proof of the registered office, with a Non-Objection
Certificate and proof of ownership.
An affidavit and consent form of the director of one person
company in Form INC-9 and DIR-2.
A professional statement certifying that all legal
compliances have been made.
V. Approval from the Ministry of Corporate Affairs: All the
above-mentioned documents are uploaded on the Ministry of Corporate Affairs
website for approval. Once these documents are submitted, Form 49A and 49B are
generated for PAN and TAN registration of the company.
VI. Certificate of Incorporation: The Registrar of Companies
(ROC) issues a Certificate of Incorporation after verifying all the documents.
