The concept of One Person Company (OPC) in India was introducd by the Companies Act, 2013. In the old Companies Act, 1956, a minimum of 2 directors & shareholders were required to form a private limited company. However, in case of a One Person Company, only 1 person is required to form a private limited company. Hence the name, One Person Company,. It was introduced to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability prtection to its shareholders, has continuity of business & is easy to incorporate.
An OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of OPC prior to incorporation.
OPC incorporation
IAPL can incorporate a One Person Company in 14 to 20 days, subject to ROC processing time.
Obtaining DSC and DIN
Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Director of the OPC. DIN and DSC can be obtained for the proposed Director within 5 to 7 days.
Name approval
A minimum of one and a maximum of six proposed names must be submitted to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 5 to 7 working days.
OPC incorporation and Documentation
Incorporation documents can be submitted to the MCA along with an application for incorporation. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.
INC-29 Company registration
IAPL can incorporate a One Person Company using Form INC-29 in 5 to 10 days, subject to ROC processing time.
Obtaining DSC and DIN
Digital Signature Certificate(DSC is required for the proposed Director of the One Person Company. DSC can be obtained for the proposed Director within 1 to 2 days.
Filing for incorporation
One name must be selected for the company after referring to the MCA Name and Trademark database. Incorporation names are prepared and filed based on the selected name.
Company registered
Form INC-29 is submitted to MCA with the relevant documents. If the name is acceptable, MCA will issue incorporation. Else, resubmission with new name may be required.
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