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With the introduction of the Companies Act, 2013 the concept of OPC(one person company) was introduced to support entrepreneurs who on their own are capable of starting a business by allowing them to create a single person economic entity. Only one single member is required to incorporate an OPC, which is the biggest advantage of OPC over private limited companies & partnerships. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, is easy to incorporate and continues in the foreseeable future.
This is a new concept introduced by the companies’ act 2013 and is available for a business with a capital up to Rs. 50 Lacs and a turnover up to Rs. 2 Crore. The one person company has some benefits in the companies act in terms of non-applicability of some provisions of the new act.
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For One Person Company
Rajput Jain & Associates offers the following Cost effective & Easy Company Registration Services packages for its Clients with in schedule days from Anywhere in India:
What is advantage of one Person Company?
Though OPC provides a lot of advantages, it has some limitations as well. For instance, in every OPC, a different person has to be nominated as a nominee director who would further continue as the owner, in case of disability of the promoter director. However the moment turnover increases beyond Rs. 2 Crores or the capital crosses 50 Lacs the one person company shall be required to be converted as a private limited company& furthermore file audited financial statements with the Ministry of Corporate Affairs. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation. Rajput Jain & Associates can help incorporate a One Person Company (OPC) in India.
Private Investments In Future
OPC can be converted into a private Ltd. Company, in case funds are required in the future by filing one form only.
Separate Legal Identity
A one person company is a legal entity and a juristic person established under the Act.
It is a proprietorship having a legal identity in eyes of law & registered with only a single person.
While giving loans, OPC are preferred above proprietorships.
The liability of both the promoter director & the company is limited to the value of its assets. Personal assets of the member are also safe.
Company is one of the most trusted legal form of entity, hence is easy to grow.
Is One Person Company (OPC) preferred for small business?
The disadvantages of unlimited liability & no legal status in case of sole proprietorships are the main target of OPC. Since, proprietorships are suitable for small businesses; OPC is preferred for the same.
How to Incorporate One Person Company (OPC)?
Step 1:Name reservation: Form INC-1 shall be filed for name availability. Incorporate OPC: After name approval, form INC-2 shall be filed for incorporation of the OPC within 60 days of filing form INC-1.
Step 2: Form DIR-12 shall be filed along with (linked) form INC-2 except when promoter is the sole director of the OPC.
Step 3: The Company shall file form INC-22 within 30 days once form INC-2 is registered in case the address of correspondence and registered office address are not same.
Subject to ROC processing time, Rajput Jain & Associates can get an OPC incorporated within 10-14 days.Documents of minimum two person shall be required, one to become shareholder and director while another to become nominee we will also require signature on the statutory forms.
Obtaining DSC & DIN
The Digital Signature Certificate (DSC) and Director Identification Number (DIN), are required with the proposed Director of the OPC. They could be obtained within 2 to 4 days. Preparation of Main Object of the company.
MCA accepts application for name approval in form INC-1 with maximum 6 & minimum 1 proposed name. Subject to availability, related guidelines & processing time, MCA generally gives the approval to the name within 4-7 days. The name of the company should reflect the object for which the company is formed.
Incorporation documents (Form INC-2 along with INC-22 and DIR-12) can be submitted to the MCA MCA will approve application for incorporation in 5 to 7 days, subject to their processing time & Issuance of Certificate of Incorporation. After filling the proof of such money paid to the company, ROC issues a certificate of commencement of business.
How long is the incorporation of the Company valid for?
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant.
What is a Digital Signature Certificate?
A digital signature is required for the proposed director because MCA mandates the signing of documents electronically filled online.
Is there any threshold limits for an OPC to mandatory get converted into either private or public company?
In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover exceeds during the relevant period exceeds two crore rupees, then the OPC has to mandatorily convert into private or public company.
How to intimate ROC that the OPC has exceeded the threshold limits and require conversion into private or public company?
The OPC shall inform RoC in form INC-5, if the threshold limits is exceeded and is required to be converted into private or public company.
What is the time limit for filing Form INC-5?
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
Is there any Form that is to be filed for conversion of an OPC into private or public company?
Form INC-6 shall be filed by an OPC for conversion of an OPC into private or public company.
Is there any other purpose for filing this this Form INC-6?
Yes, the private company will also file form INC-6 for converting itself into an OPC. The paid up share capital of private company should not be exceeding fifty lakh rupees and should not have average annual turnover more than 2 crore rupees at the time of such conversion into OPC. The company shall be having one member and shall appoint one nominee to act as member in case of death or incapacity of the member at the time of conversion into OPC.
What is the time limit for filing Form INC-6?
Form INC-6 shall be filed within 30 days in case of voluntary conversion and within six months of mandatory conversion.
What is Director Identification Number (DIN)?
Director Identification Number is a unique identification number which is valid for life-time & is assigned to all existing and proposed Directors of a Company& each director can have only a single DIN. It is mandatory for all present or proposed Directors to have a Director Identification Number.
What is authorized capital fee?
Authorized capital of a Company is the amount of shares that the company can issue to it shareholders. Companies have to pay the Government an authorized capital fee of minimum Rs. 1 lakh to issue shares in a Company.
How many people are required to incorporate a One Person Company?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. A nominee member is one, who shall, in the event of promoter’s death or incapacitation become a member of the Company.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 one financial year. A person can be member in only one OPC.
What are the requirements to be a Director or Nominee in a OPC?
Only a natural person who is not a minor & is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member..A person can incorporate upto five One Person Companies (OPCs).
Which Form is to be filed in case of withdrawal of consent by the nominee of an OPC or in case of intimation of change in nominee by the member?
Form INC-4 shall be filed in case of withdrawal of consent by the nominee or in case of intimation of change in nominee by the member.
What is the capital required to start a One Person Company?
There is no such requirement in case of a OPC. However, authorized capital fee of minimum Rs. 1 lakh must be paid to the government. There is no requirement to show proof of capital invested during the incorporation process.
Is it allowed to change registered office of the company after registration?
Yes, A company can change its registered office any time after following specified procedure. The changed address can be situated within the same state or in a different state from the state in which it was originally registered.
How to Inform ROC about the change in membership of OPC?
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.
I am carrying business as a sole proprietor/partnership; can I register a one person Company?
Yes, A one person company can be set up by following provisions of Companies Act, 2013.
Is One Person Company structure suitable for my business?
The one person company is typically for small businesses which have turnover limited to Rs. 2 crore only, the promoter may discuss with us on the feasibility of this form in the real life situation of a company.
Why Funding is not a problem for One Person Company (OPC)?
Yes, it is true.With a good business idea & plan, funding is not a problem for One Person Company (OPC) .Instructions to increase funding to priority sectors have been issued by RBI. Eligible priority sector lending:-
Investment in Plant & Machinery
Investment in Plant & Machinery
One Person Companies may leverage the benefits of priority lending by falling under above mentioned categories along with the following additional benefits:-
Therefore, OPC doesn’t have to worry about the funds and can concentrate on their core business ideas, and evolve it into a plan. Incorporate a One Person Company (OPC) with Rajput Jain & Associates and start your business today!
Is an office required for starting a One Person Company?
An address in India (premises may be commercial, industrial or residential) where the registered office of the One Person Company will be situated is required.
Do I have to be present in person to incorporate a Private Limited Company?
All the documents have to be scanned and sent through email to our office. Some documents will also have to be couriered to our office. So, there is no need to be present in person during the incorporation.
How long will it take to incorporate a One Person Company?
Normally, Rajput Jain & Associates can incorporate a One Person Company in 7-15 days subject to submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.
What do I need to quickly incorporate my One Person Company?
The proposed name of the company must be very uniquebecause names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be wasted for resubmission of names.
Rajput Jain and Associates is the largest online service platform in India which provides easy solutions in starting their new business at affordable cost. We aim at helping the entrepreneurs at every legal and regulatory step. We stay as your partner during entire business cycle and ensure that the business keeps prospering and remains complaint.
Rajput Jain and Associates is a network of experienced chartered accountants, lawyers, company secretaries, cost accountants, financial experts, expert bankers all over India to provide the needed services for small and medium size enterprises.
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