The concept of One Person Company (OPC) was introduced via Companies Act 2013 just to provide corporate identity to small businesses. You require a nominee and a Director for starting OPC. The nominee is one who will take care of the OPC in the event of the owner’s death/ incapacitation. The company has to pay an authorized capital fee of minimum Rs. 1 Lakh towards the Government to issue shares.
For the communication from the MCA, OPC should have its own registered office. OPC can set its office in an Industrial, residential or commercial premises. It is must for the proposed director and nominee of the OPC to submit a proof of address and Pan Card as Identity Proof at the time of One Person Company registration. And an NOC, address proof and identity proof of the Landlord of Office premises are also necessary to complete One Person Company registration.
The One Person Company registration process may take 10 to 15 days. The One Person Company registration completion will also depend on the speed of government approvals and the submission of documents by the client. So if you want speedy incorporation chose some unique name for your One Person Company and submits documents prior to incorporation process.
10 things necessary for One Person Company registration process
- You will have to pay a minimum sum of one lakh rupees towards Government as Share Capital. OPC is either limited by share or by guarantee.
- It is necessary to mention “One Person Company” in brackets below the name of ‘One Person Company’.
- And it is compulsory to mention the name of the nominee in the memorandum with his/her consent.
- It is necessary to file the consent of the nominee with the registrar at the time of OPC incorporation along with memorandum and Articles.
- The nominee has the right to withdraw the given consent anytime.
- On the other hand, the client/ shareholder of OPC can change the nominee any time by giving notice to him/her and also intimate it to the company as well as to registrar.
- The nominee of the company becomes automatically shareholder/member of the OPC in the event of the death/ incapacitation of the client.
- The shareholder of the OPC is the first director until he/she appoints a director.
- An OPC can have minimum one and maximum 15 directors.
- OPC has to file the copy of financial statements with the registrar within five months of the closure of financial year. And it is necessary for the OPC to inform registrar about contracts entered.
Who is not eligible for One Person Company registration?
Following people are not eligible for One Person Company registration:
- A Personal who has already incorporated One Person Company can’t apply register for second OPC
- A Person can’t become nomine of two OPC’s
- A minor is not eligible to become One Person Company nominee. A minor cannot hold shares with beneficial interest.
- A person who has already incorporated an OPC can’t convert it into a non profitable company under section 8 of the Act
Sum and substance
It is important for you to have the above knowledge before going for One Person Company Registration. So read this article carefully with complete attention.