One Person Company Incorporation
Shout-out to Solo Entrepreneurs who can now get the corporate identity with the advantage of limited liability
One Person Company Registration in India
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What is an OPC company?
A One Person Company (OPC) is a type of business structure that allows a single individual to form and run a company. It gives an opportunity to entrepreneurs who want to start a company on their own without involving any partners. Section 2(62) of the Companies Act, 2013 defines OPC as a company which has only one person as a member. -
What is an OPC registration?
OPC registration refers to the process of legally establishing a One Person Company (OPC). The OPC Registration process is done through online mode in India and it is done through the V-3 Portal of Ministry of Corporate Affairs (MCA) which gives ease in the formation and registration of One Person Company.
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Steps to Incorporate a One Person Company in India.
Incorporating a One Person Company (OPC) in India involves several steps. Here’s a general outline of the process:
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Obtain Digital Signature Certificate (DSC) :
The first step is to obtain DSC for all proposed directors of the company. DSC is required for filing forms electronically with the Ministry of Corporate Affairs (MCA). -
Obtain Director Identification Number (DIN) :
The proposed director(s) must obtain a Director Identification Number (DIN) if they don't already have one. DIN can be obtained by filing Form DIR-3 with the MCA. -
Name Reservation :
Choose a unique name for the OPC and check its availability. You can use the RUN (Reserve Unique Name) service on the MCA portal to reserve the name. Once approved, the name is reserved for 20 days. -
Drafting of Memorandum and Articles of Association (MOA & AOA) :
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) for the OPC. These documents define the scope of its operations and internal regulations, respectively. -
Drafting of OPC Agreement :
Draft the OPC Agreement, which specifies the terms and conditions between the OPC and the sole member. -
Incorporate Filing :
Once the name is reserved and necessary documents are prepared, file the application for incorporation of the OPC using SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form along with the required documents including MOA, AOA, and OPC Agreement. -
Payment of Fees :
Pay the prescribed incorporation fees along with the filing of SPICe+ form. -
Certificate of Incorporation :
If all the documents are in order and the Registrar of Companies (RoC) approves the application, they will issue a Certificate of Incorporation for the OPC. This signifies the legal existence of the company. -
PAN and TAN Application :
After receiving the Certificate of Incorporation, apply for the company's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with the Income Tax Department. -
Compliance Requirements :
Ensure compliance with post-incorporation requirements such as opening a bank account, obtaining GST registration (if applicable), maintaining books of accounts, filing annual returns, etc.
It’s important to note that the process may vary slightly depending on the specific circumstances and regulations in force at the time of incorporation. It’s advisable to consult with a professional chartered accountant or company secretary for guidance through the incorporation process.
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