One Person Company Registration in Delhi
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ONE PERSON COMPANY (OPC) REGISTRATION
One Person Company (OPC) is an innovative step towards leveraging extended benefits to individual entrepreneurs seeking benefits of Private limited companies.
A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.
SECTIONS/REGULATIONS/RULES/SCHEDULE APPLICABLE TO OPC
- Section 2(62) of the Companies Act, 2013;
- Companies Incorporation Rules, 2014 (Rule 3 to Rule 7); and
- Schedule 1 of Companies Act 2013.
OPC UNDER COMPANIES ACT, 2013
AS PER SECTION 2(62) OF COMPANIES ACT 2013 READ WITH RULE 3 OF COMPANIES INCORPORATION RULE, 2014; One Person Company” means a company which has only one person as a member.
- Only a natural person who is an Indian citizen and resident in India-
- Shall eligible to incorporate an OPC:
- Shall be a nominee for the sole member of an OPC
The term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding financial year.
While counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted.
A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.
ADVANTAGES OF AN OPC
- One of the main advantages of OPC is that it has more opportunities with limited liability as the liability of OPC is limited to the extent of the value of share it holds.
- OPC is a separate legal entity and capable of doing everything that a businessman wants to do.
- One Person Company can easily raise funds.
- OPC enjoys little compliance burden as compared to a private limited company.
- OPC always enjoy an increased trust and reputation in the Industry.
- An OPC can be limited by guarantee or limited by shares or an unlimited company.
- One Person company need not hold any annual general meeting each year.
- Provisions relating to meetings and quorum do not apply to them.
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ADVANTAGES OF REGISTRATION ONE PERSON COMPANY
- Best suitable for businesses with single promoter willing to step into Corporate World Liability of the owner is limited to the extent of capital Appointment of Nominee for enjoying Uninterrupted Existence of the company
- Centralized registration and Transparency in transactions
- Higher flexibility and less compliance requirements compared to Private Company
- Separation of management and ownership is also possible in OPC
- Hire Managerial Personnel without affecting share in ownership
- Ease in Raising capital from Financial Institutions
- Ease of Operations and administration
- Higher Creditability from other organizations alike Private Company
DOCUMENTS REQUIRED FOR OPC REGISTRATION
- Copy of PAN Card of owner
- Passport size photograph of owner
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Registration Process for One Person Company Registration in Delhi
1. Decide the name of Proposed Company
- Two names can be proposed at a time in a preferential order. Subsequently, if the names will be available then the ROC will approve the Name.
- OPC is required to use the word “OPC” at the end of its name.
2. Arrange the required documents
- The Experts team checks the correctness of documents and that the documents are qualified to be used for further process.
3. Obtain Digital Signature Certificate of proposed Director and/or member (if already have then skip this step)
- The complete OPC Incorporation process is online and thus the e-forms are required to be digitally signed by the proposed member and/or director(s).
4. File Name Reservation Application
- The next step is to File SPICe+ Part A Form to apply for Reservation of Company’s Name.
- This step is very important as it will protect the name and restrict others from using the same name.
- The applicant must also submit the main object of the proposed company.
5. File Form SPICe+ Part B with other linked forms for incorporation of Company
- Once the name gets approved, incorporation form SPICE+ Part B and other linked forms that are Agile Pro, e-MoA, e-AoA and INC-9 are shown on the MCA portal.
- The applicant is required to fill and digitally sign all the forms.
- Check the details thoroughly before final submission and subsequently, file the forms on MCA Portal for further steps.
6. Get Incorporation Certificate
- If the ROC is satisfied with the details and documents submitted in the Incorporation forms then it will send the Incorporation Certificate along with the PAN, TAN and CIN of the company and DIN of the Director(s).
7. Open Bank Account in company’s name
After incorporation, the applicant has to open the bank account in the name of company in order to commence the business. Thereafter, the member is required to deposit the paid-up capital amount in the company’s ban account.
8. File INC-20A to obtain Certificate of Commencement of business
- After the 7th step, the company is required to file INC-20A Form to obtain the Certificate of Commencement of business.
- It must be filed within 6 months from the date of incorporation date.
9. Receive Certificate of Commencement of Business
When the ROC is satisfied with the details and attachments of Form INC-20A, it shall send the Certificate of Commencement of Business to the company.
10. Start the Business Operations
The Company can start the business on receipt of Certificate of Commencement of Business.
FAQ- One Person Company Registration in Delhi India
OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.
No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.