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The Companies Act, 2013, for the first time introduced the One Person Company as a new type of business in India. To start a business, only one person is required. A nominee, on the other hand, must be nominated. To begin an OPC, read the sections below that describe the qualifying conditions and the detailed step-by-step approach.
The One Person Company is suitable for small enterprises with a turnover of less than Rs. 2 crores and a maximum capital investment of Rs. 50 lakhs. There can be multiple directors on an OPC. One of them, though, must be an Indian citizen. The fundamental disadvantage of the OPC structure is that it may only be established by an Indian citizen, and FDI is not permitted in one-person businesses.
The proposed company name should not be confusingly similar to an existing corporation or limited liability partnership (LLP). You should also check the trademark registration to make sure the name doesn’t conflict with any existing or pending trademarks in India.
Invest according to your business’s needs; there is no set amount of capital that must be kept in the company. The government charge for company registration, on the other hand, is based on the capital.
One of the company’s directors must be based in India. Regardless of citizenship, a person is considered a resident if he or she spends at least 182 days in India during the previous fiscal year. The duration of the stay can be divided into phases
Only one person can form an OPC in India, and that person will operate as the company’s directors/shareholders. An OPC’s maximum number of directors is 15, and its maximum number of shareholders is one.
Because the OPC Registration application is submitted online, the process begins with the partners receiving a digital signature of class-2..
The company must have a distinct and new name that is not the same as or similar to a previously registered company, LLP or registered/applied trademark.
For allotment of a DIN and incorporation of the company, a single application (spice 32) is made. The Certificate of Incorporation is issued once this form has been approved.
The Permanent Account Number, or TAN, is assigned by the Internal Revenue Service and appears on the certificate of incorporation. The company’s bank account will be opened next.
Because there is only one shareholder in the OPC, any other person can be nominated as the nominee with their consent at the time of incorporation of a one-person company.
For OPC Formation in India, the following are the forms on which promoters need to sign, All the forms/formats are to be printed on plain A-4 size paper, and signature should be preferable with a blue ink pen.
A-One Person Company is formed with a physical address that will be identified as the newly registered OPC’s registered office. The following is a list of documents that are admissible as verification of the location of the company’s registered office. The proof of the premises should be no more than two months old.
Under section 12 of The Companies Act, 2013, a registered office must be declared at the time of company incorporation and maintained by the company, and it must be capable of receiving and recognizing all communications and notices directed to it. Furthermore, the firm’s statutory records must be kept at the registered address of the company. As a result, having a registered address in a coworking space isn’t appropriate unless it’s a secure location.
There is no such thing as a certificate of incorporation or registration for a sole proprietorship. As a result, the proprietorship’s legal identity is established by numerous different registrations or licenses received in the proprietorship’s name. Similarly, each specific registration, such as the GST Certificate, MSME Registration Certificate, Tan Allotment Letter, and so on, will result in the issuing of a certificate of registration.
The OPC can have a three-year average turnover of Rs. 2 crores; if the turnover exceeds this, the firm must convert to a regular company.
Limited Liability means that the One Person company’s owner or shareholder is not personally liable for the company’s debts. They are only liable for the unpaid shares of the company’s capital. To be eligible, the shareholder must follow all rules and pay all taxes on time.
Apart from the above-mentioned characteristic of limited liability, a business has the following important characteristics.
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