Because there was no legislation allowing any single person to pursue their business plans on their own, the government of India introduced the One Person Company into the economy. It has come into existence through the Companies Act, 2013. OPC registration has its own set of advantages.
A One Person Company was initiated to promote the sole entrepreneur. It is a well-organized and easy-going business form. Any natural person shall be eligible to incorporate the company but shall not be a member of more than one OPC. It has so many benefits, just like a private limited company. One person company registration is an excellent choice for any small business by a sole entrepreneur.
Components of OPC:
Single Owner:- The company’s name clearly states that it is solely owned and managed by one person.
Separate Legal Entity:- No personal assets of the company’s owner will be taken away if the company suffers any loss. This factor shows the security of the personal wealth of the owner.
Residence and Citizenship:- A person must be a resident citizen of India or a NRI, if he/she wants to incorporate an OPC in India.
Lesser Compliances:– A one-person company has fewer compliance requirements than a private limited company. OPC also has the benefit of having limited liability just like a private limited co.
Perpetual Succession:- To continue the concept of perpetual succession, a nominee of the age of 18 or older must be appointed in the company with his written consent, according to the law.
Procedure for Registration of One Person Company
Without a doubt, One person company registration is a quite lengthy task. OPC registration online is also a time-consuming and stressful process. Having it done by professionals would allow you to save time and focus on other aspects of your business. You can also contact us for one-person company registration online.
Step 1: Apply for DSC-
A Digital Signature Certificate is required to validate the originality of the documents to be presented online one person company registration. To apply for DSC, the owner’s address, aadhaar card, PAN card, photo, e-mail id, and phone number are required.
Step 2: Name Approval-
The proposed company’s name must be unique to be approved and registered. It should be distinct from other registered companies, trademarks, or any domain name. And if you auto-check, the system will determine whether your name is available or not. The format of the proposed names should be as “XYZ (OPC) Private Limited”. You can even reapply if the names get rejected.
This process is done via Part-A of the Spice+ form on the Ministry of Corporate Affairs’ website. Furthermore, selecting “proceed for incorporation” will direct you to Part-B of the Spice+ form.
Step 3: Documents required for Spice+ (Part-B)-
As you proceed through the existing application, you will be required to provide all additional information and documentation for the online One Person Company registration.
- Capital Structure- You must confirm whether or not your company has a share capital. If you do, please include the total authorized share capital as well as the subscribed share capital.
- Address- As you save and continue on the previous page of capital structure, you’ll be taken to a page which requires the complete details of your registered office address, as well as your email address and phone number.
- Subscribers & Directors- It is checked to see if the subscribers and directors have valid DIN. This page would also require information about the number of first subscriber(s) to the MoA and the company’s directors.
- Stamp Duty- It is required to give the full information about the stamp duty which is imposed on the registration process. The stamp duty amount is determined by the state in which your company will be incorporated.
- Additional Attachments- PAN and TAN information, written consent of the nominee, recent utility bills, subscriber address and identity proof, and any other documents must be submitted.
- Declaration-. Mark all of the declarations that have been asked for. Also, fill in the information of your CA, CS, or any other professional. Then save and submit your Spice Part-B form.
Step 4: Incorporation certificate-
Please submit all PDF files in standard format. The scanned documents’ picture quality must be clearly visible. Please provide all updated information and legal documents and upload them to the MCA’s website. Following completion of the verification process, you will be registered and given a certificate of incorporation.
The entire registration process can take up to 7-10 days, and as previously stated, professional assistance is required. So, without further ado, connect with JustStart. Allow us to alleviate your concerns by completing the entire process entirely by our team at a very reasonable price.