Documents required for one person company registration in India

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Documents required for one person company registration in India

A One Person Company (OPC) is the latest business in India introduced by the Companies Act, 201 by.A forward-thinking plan was launched that promotes the inclusion of individuals with micro-businesses and entrepreneurial concepts and provides enhanced to entrepreneurs who have a high probability of starting an enterprise allowing them to form a one person company. One can only register under the framework of the One Person Company Act 2013 and therefore the laws for it, wherever it was made suitable for a one person company to figure out as a corporation, while not the complexity of getting partners. This encourages a lot of people to come forward to start a business. OPC is suitable for small businesses where the turnover is Rs. 2 crore. In OPC registration it is important to know that the preacher or director must be an Indian resident. What is your exact need?. Here we discuss about Documents required for one person company registration in India in this article.

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It is said that “a one person company is an example in Indian corporate governance, making it equal to global standards.” Pursuant to Section (1) (c) of the Companies Act, 2001, OPC may be constituted for legal purposes as any person is a citizen of India.As per the provision of Section 3 () 3) of the Companies Act, 2013, defined () 3) “One person company” means a company in which there is only one person as a member.

For the formation of OPC – only a natural person who is resident in India –

One person will be eligible to join the company;

One person will be the nominee for the sole member of the company.

The term “resident in India” means a person who has lived in India for less than 182 days before a calendar year.

Documents required

One needs to prepare the following documents that need to be submitted to the ROC:

a. Memorandum of Association (MOA) which will be followed by the company or the business for which the company will be involved.

b. The Articles of Association (AOA) which will be governed by the company lays down the by-laws.

c. As there is only 1 director and member, a nominee has to be appointed on behalf of such person as if he becomes incapacitated or dies and is unable to perform his duty, he will perform on behalf of the director and take his place. In Form INC-3 the consent will be taken along with his PAN card and Aadhar card.

d. Proof of registered office along with proof of ownership and NOC from the owner.

e. Declaration and consent of the proposed Director of Form INC-9 and DIR – 2 References.

f. A declaration by professional certification that all have been complied with.

Steps for Establishment of One Person Company (OPC):

1. The first step is that the directors have to get a digital signature (DSC) and a director index number (DIN). DIN is mandatory for all directors. The person must have a page to apply the DIN. D.I.N. The e-form downloaded from MCA is applied using DIR-3. The DSC received should be registered with the MCA portal.

2. The second step is to reserve a unique name for OPC through. This can be done through ARP (reserved unique name) or Spicy-32. This is done by form number. INC-1. Only after obtaining a certificate of registration from the ROC, can the OPC enter into a contract or business on the proposed name.

3. A letter of consent has to be obtained from the nominee in INC-3. The nominee will become a member of the One person company when the owner loses the ability to contract. The name of the nominee is also added.

4. Now we are going to draft Memorandum Association f Association (MOA) and Articles Association f Association (AOA). Models for AOA are given in Table I, F, G, H and J of Schedule I. If the AOA has the provisions contained, the form must be reported to the Registrar by ICC-2. This is the case with the newly included One person company. MOA and AOA will have to be signed. The witness should be verified by the witness. The address and occupation of the signatory member is mandatory. INC-33 and INC-34 have to be prepared and uploaded.

5. The next step is to file an application with the Registrar of Companies (ROC). The form is INC-2. It is an insertion form. INC-3 is a part of it. We should fill in all the details with the required documents details.

6. Affidavit in Form No. INC-9.

Merits of One Person Company

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Sole Ownership: A single person owns the entire business, i.e. all property and assets belong to the proprietor. Accordingly, it carries all the risks associated with the enterprise.

No profit and loss sharing: Any revenue from a sole proprietorship business belongs to the sole proprietor. As a result, all losses incurred by the firm are borne by the sole owner.

Capital of a man: Capital required to start or continue a business, only through his personal resources or by borrowing, i.e. by bank, financial institutions, friends, relatives, brought into the business to start or continue the business, etc.

Separate assets:

An OPC will have its own separate property as it has its own identity and acts as a separate legal entity. The One person company will own its assets, and the members will have no insurable rights to the company’s assets and documents.

Transfer of shares:

OPC has only one shareholder. The issue of transferring part of the shares does not arise at all because if it is done, the company will stop being a “one person” company. The transfer of all shares is also not practical as it will change the entire structure of the company as the owner of the company changes. The issue has not yet been dealt with, and the interpretation of the law may lead us to clarify that in the OPC, the transfer of shares is not permitted.

Tax flexibility and savings:

One Person company enters into valid agreements with its shareholders or directors. This means that as a director you can get remuneration, you can get rent with less rent, as a creditor you can raise money in your own company and earn interest.