August 16, 2021

One person company (OPC)

1 minute

A one-person company (OPC) is a business formed by a single individual. A single person could not form a business prior to the implementation of the Companies Act of 2013. If a person wished to start a business, he or she could only do so as a sole proprietorship because forming a company required a minimum of two directors and members.

OPC registration process:

Step 1: Apply for DSC

Step 2: Apply for DIN

Step 3: Application of name approval

Step 4: Documents needed

The Memorandum of Association (MOA) outlines the company’s goals and objectives as well as the business for which it will be incorporated.

The Articles of Association (AOA) establishes the company’s operating procedures.

Since there is only one director and one member, a nominee on behalf of such a person must be nominated so that if he becomes incompetent or dies and is unable to discharge his obligations, the nominee will act in his place. Along with his PAN card and Aadhaar card, his consent in Form INC-3 would be taken.

Proof of the proposed Company’s registered office, as well as proof of ownership and a letter of authorization from the owner.

Forms INC-9 and DIR-2 are used to declare and consent to the prospective Director.

Step 5: Filing forms with MCA

Step 6: Issue of certificate of incorporation

Only a natural person who is an Indian citizen and also resides in India is qualified to serve an OPC as a member and nominee. The phrase “resident in India” refers to a person who has spent at least one hundred and eighty two days in India during the previous financial year.

...more