ONLINE ONE PERSON COMPANY REGISTRATION | OPC COMPANY REGISTRATION
The introduction of the Companies Act, 2013, paved the way for the emergence of new ideas into the business/corporate legal system of India.
ONLINE ONE PERSON COMPANY REGISTRATION, These new ideas were afresh and provided unique ways for conducting operations of a company. The Companies Act, 1956 had got outdated because of the changing dynamics in the corporate world and the need for a modern law that embraces and fulfills the requirements of the current world obligations. Previously, if an individual wants to start and register a private company, he needs at least one more partner other than him because the Companies Act of 1956 mandated for at least two shareholders. An expert committee which was headed by Dr. JJ IRANI in the year 2005 was the first to recommend the concept of Online ONE PERSON COMPANY registration or OPC company registration.
The term “One Person Company” was applauded on a big scale because it brings forth a wide span of opportunities for individuals looking forward to start their own ventures with the structure of an organized business.
The former Companies Act, 1956 provided for the obligation of at least 7 members for the establishment of a Public Limited Company, what’s more, regarding investors, it requires 2 of the investors to be available to approve the organization, and subsequently, as a result of this very arrangement, there was no development of One Person Company in the nation of India.
ONLINE ONE PERSON COMPANY REGISTRATION, Companies Act, 2013 laid down the provision of ONE PERSON COMPANY under Section 2(62), which defines the term ONE PERSON COMPANY as a “Company which has only 1 person as a member” and brought it into effect on 29th August 2013. Another significant highlight to be thought about is that Section 3 of the Companies Act groups One Person Company as a private Limited organization for every one of the lawful purposes yet with only one individual in the organization. Also, each of the arrangements identified with a private limited company is applicable to an OPC, except if they are explicitly avoided by a free condition.
SOLE PROPRIETORSHIP AND OPCS ARE USUALLY CONFUSED WITH EACH OTHER, BUT THERE ARE CERTAIN DIFFERENCES BETWEEN THEM:–
A sole ownership kind of business could seem to be primarily the same as one-individual organizations since the two of them embrace a solitary individual possessing the business; however, there exist a few contrasts between them.
The principle distinction between the two is the idea of the liabilities they convey. Since OPC is a different legitimate substance recognized from its member, it has its own resources and liabilities. The member is not accountable for reimbursing the obligations of the organization.
Then again, sole ownerships and their owners are similar people. Thus, the law permits connection and provides for the proprietor resources if there should be an incident of non-satisfaction of the business’ liabilities.
IMPORTANT FEATURES OF ONE PERSON COMPANY:-
- ONE DIRECTOR:- Each “One Person Company” should have only one Director and not more than that under any clause.
- ONE SHAREHOLDER:- Each One Person Company is needed to have just a single shareholder.
- NOMINEE FOR SHAREHOLDER:- Each One Person Company requires having one individual who might additionally select an investor, and this designation would happen as per the notice. The individual whose name has been expressed in the reminder would, in general, be an individual from the organization in case of one or the other demise or inadequacy of the individual from the One Person Company.
- ANNUAL GENERAL MEETING:- One Person Company does not require itself to conduct the annual general meeting.
- CHARACTERISTIC OF A PRIVATE COMPANY:- Unless excluded by the individual of OPC, the One Person Company has all the characteristics of a private corporation.
- FINANCIAL STATEMENTS: – It not obligatory for OPC to include cash flow statements in the financial statement of the Company.
- PAID-UP CAPITAL:- As per the Companies Act, 2013 as amended from time to time, One person company does not require to have a paid-up share capital to start its business.
ADVANTAGES OF ONE PERSON COMPANY:–
- PRIVATE COMPANY:- Section 3(1)(c) of the Companies Act says that a single person can create a company. It further detailed OPC as a private company.
- LEGAL IDENTITY:- One Person Company is known to have a different legitimate character from its investors, which implies the organization and the investors go about as two distinct personalities in every conceivable case.
- LIMITED LIABILITY:- One Person Company will, in general, restrict the risk of entrepreneurs as the organization has its own personality. Limited Liability is viewed as the most valued benefit controlled by the One Person Company. President Eliot of Harvard once thought to be the restricted responsibility of One Person Company as the most valuable attribute of the organization, and it was thusly respected that the individuals go back and forth yet the organization keeps on excess as a different lawful substance.
- INDEPENDENT COMPANY EXISTENCE:- The additional benefit which the One Person Company has free character from that of its chief investors and chief. This very guideline appeared from the milestone instance of Salomon v. Salomon and Co. Ltd. For this situation, it was held that the Company shapes a particular lawful character from that of its individuals. Consequently, an organization ought to be treated as an individual in law.
- COMPLIANCE:- In contrast to privately owned businesses, One Person Companies have not been dependent upon different procedural conventions like Annual General Meeting, General Meeting or Extraordinary General Meeting, and so on. The exception from these conventions makes the activity of One Person Company helpful and inconvenience-free.
- ANNUAL RETURN FILING:- One Person Company’s yearly return is required to be signed by a director of the Company. The mandatory requirement of CS Signature does not applicable to OPC.
DISADVANTAGES OF ONE PERSON COMPANY:–
- INVESTMENT:- As the domain of the One Person Company is new and similarly, untested financial backers may careful to put resources into the organization, and this goes about as a significant impediment.
- TAXATION:- One Person Company is burdened both on pay just as the conveyance of benefits, and this is viewed as a significant inconvenience that doesn’t act for the One Person Company. The One Person Company is henceforth said not to appreciate any tax reductions at the same time, despite what is generally expected, the duty goes about as a weight with respect to the organization.
- MAINTENANCE COST:- Consistence cost of association firm or exclusive is low contrasted with One Person Company.
- ONE PERSON MANAGEMENT:- An investor is one, and that individual settles on every one of the choices. The organization’s prosperity and development are altogether subject to one individual’s dynamic capacity.
- COMPULSORY APPOINTMENT OF NOMINEE:- The actual reason for One Person Company’s idea was to empower the single individual to go into undertaking alone without burning through his time and energy searching for an accomplice. This whole reason has been crushed because of the legitimate order, which requires the investor to name a candidate, who will, in case of the endorser’s passing or his inadequacy to contract, turns into the individual from the organization at the hour of joining of the One Person Company. This makes procedural difficulty for the endorser, like searching for a candidate, getting his assent, and so forth.
- NBFC ACTIVITIES:- An OPC cannot take up the activities of non-banking finance companies.
DOCUMENTS REQUIRED FOR THE REGISTRATION OF ONE PERSON COMPANY:
1. IDENTITY PROOF OF DIRECTOR AND SHAREHOLDERS:
- PAN card for Indians directors.
- Passport for foreign nationals (mandatory) and proof of Nationality.
- Any ID card ( DL/ voter id/ passport)
- 2 passport size photographs.
2. ADDRESS PROOF OF DIRECTORS AND SHAREHOLDERS:
• Bank statement/Electricity/Telephone/Mobile bill) (not older than two months) (anyone)
3. PROOF OF REGISTERED OFFICE:
Conveyance/Lease deed/Rent Agreement etc., along with rent receipts.
Copy of any utility bills, i.e., Telephone/Gas/Electricity bill) (not older than two months).
NOC from the landlord (if rented).
DSC & DIN
PROCEDURE FOR ONLINE REGISTRATION OF ONE PERSON COMPANY:-
RESERVATION OF NAME: The initial phase infuses is to hold/support the name of the organization. The proposed name choice ought to don’t contain any word which is precluded under the Companies Act, 2013. An endorsed name is substantial for a time of 20 days from the date of endorsement for another organization. It is allowed to apply for two proposed names and one Resubmission (RSUB) while Reserving Unique Names for organizations through the RUN web administration. In Form SPICE (INC-32), name endorsement can be applied all the while with the application for organization enlistment.
DIGITAL SIGNATURE CERTIFICATE OF DIRECTOR AND SHAREHOLDER:- The application for OPC is documented on the web. It is obligatorily needed to be endorsed by the chief and investor of the organization. So, DSC is needed to be taken for the chiefs and investor of the organization. Who is needed to sign the e-structure for enrolment prior to recording consolidation application for the organization. Photograph, ID, and Address evidence are needed alongside the DSC application structure for issuance of DSC.
DIRECTOR IDENTIFICATION NUMBER:- It is a novel recognizable proof number to the Director gave by the Registrar of Companies (ROC). Whenever the proposed Director as of now has affirmed DIN, then that will be utilized. Whenever proposed chiefs don’t have endorsed DIN at that point. DIN will be affirmed at the same time with Registration of organization.
APPROVAL OF OTHER AUTHORITIES: The Registrar of Companies may require the candidate to outfit the endorsement or simultaneously of any other department, regulatory body, proper power, or Ministry of the Central or State Government(s) according to the work to be finished.
DOCUMENTS SUBMISSION:- Application for Registration of OPC is provided to the Registrar of Companies (ROC) along with the Memorandum and Article of Associations, declaration, affidavits, etc.
CERTIFICATE OF INCORPORATION: If ROC satisfies itself that all the documents are in complete form and there is nothing else to be demanded, it will issue a Certificate of Incorporation, which is the Registration declaration of OPC. In the wake of getting the endorsement of Incorporation, the OPC is set to carry out its capacity.
PAN & TAN OF COMPANY AND BANK ACCOUNT OPENING: PAN and TAN are side by side applied along with Company’s registration forms and are mentioned in the Certificate of Incorporation. On deposit of Certificate of Incorporation and other important documents. The bank opens a current account in the name of the Company. Required for the efficient and effective running of the Company. Further, after the introduction of the new form SPICE+ and AGILE PRO, the same can be chosen in form.
The idea of OPC has been end up being a shelter for the individual business people. It has given a rapid system where an individual can, without any assistance, join himself into an organization. Instead of burning through his time, energy, and assets in discovering an accomplice. One Person Company is valuable for the two controllers just as market players. From the point of view of controllers, sorting out the disorderly area of ownership. Will make the guideline of these elements advantageous and compelling. Then again, from the point of view of market players. The situation with Private Limited Company won’t just restrict the obligation of sole business. People yet will likewise give admittance to advertise players to different credit and advance offices.
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