WHAT IS ONE PERSON COMPANY REGISTRATION?

One Person Company (OPC) registration is a business structure in India that facilitates a single individual to operate as a separate legal entity. It was introduced under the Companies Act, 2013 to provide the benefits of limited liability to entrepreneurs and allow them to lead their business completely.

BENEFITS OF REGISTERING ONE PERSON COMPANY

One of the main benefits of registering a one-person company is limited liability or responsibility. The personal assets of an individual are protected in case the company faces any financial issues. Additionally, OPCs have a separate legal identity, which can help build credibility and trust with customers, suppliers, and investors.

Another benefit is that the owner has full control over the decision-making and business operations. Unlike partnerships or LLPs, where decisions are taken by consulting other partners, an OPC allows the owner to make all decisions independently.

Registering as an OPC can help in raising funds and credit facilities. Banks and financial institutions are more likely to lend to companies that have a separate legal identity and limited liability.

DOCUMENTS REQUIRED FOR OPC REGISTRATION

1. Digital Signature Certificate (DSC) for the Director: A DSC is required for signing documents digitally during the registration process. The director of the One Person Company must obtain a DSC from a government-approved agency.
2. Director Identification Number (DIN) for the Director: He director of the One Person Company must apply for a DIN by filing an online application with the Ministry of Corporate Affairs.
3. Memorandum of Association (MoA) and Articles of Association (AoA): These documents define the objectives and rules governing the One Person Company and should be prepared and filed with the Registrar of Companies.
4. Proof of Registered Office: Documents such as lease agreements or utility bills should be submitted to prove the registered office address of the One Person Company.

KEY INFORMATION FOR OPC REGISTRATION

In addition to the above-mentioned documents, there are some key points that entrepreneurs should remember when registering a one-person company. First, the Director of the company must be an Indian citizen and resident in India. Additionally, only one Director is allowed for an OPC, although a nominee can also be appointed.

One important aspect that should be considered during the registration process is the selection of a unique name for the One Person Company. The company name must follow the naming guidelines provided by the Ministry of Corporate Affairs. The chosen name should not be similar to any existing companies to avoid any potential legal issues.

After selecting a name, the next step is to prepare and file the incorporation documents such as the Memorandum of Association (MoA) and Articles of Association (AoA) to the Registrar of Companies. These documents define the objectives and rules for managing the One Person Company. Once the documents are filed and approved, the Registrar of Companies will issue a Certificate of Incorporation, officially registering the company.

HOW TO REGISTER ONE PERSON COMPANY?

STEP 1: OBTAIN DIGITAL SIGNATURE CERTIFICATE (DSC)

The first step in registering a one-person company is to obtain a Digital Signature Certificate (DSC) for the Director. A DSC is important for signing documents digitally during the registration process. Here is the way how you can obtain a DSC:

1. Choose a Certifying Authority: The first step is to select a Certifying Authority that is authorised by the Government of India to issue DSCs.
2. Submit Documents: The Director must submit relevant documents such as proof of identity, address, and photographs to the Certifying Authority.
3. Verification Process: The Certifying Authority will verify the documents and issue the DSC.

STEP 2: OBTAIN DIRECTOR IDENTIFICATION NUMBER (DIN)

The next step is to obtain a Director Identification Number (DIN) for the Director of the One Person Company. Here’s how you can obtain a DIN:

1. File Form DIR-3: The Director must file an online application i.e. Form DIR-3 on the Ministry of Corporate Affairs website.
2. Verification Process: The Ministry of Corporate Affairs will verify the documents and issue the DIN.

STEP 3: PREPARE AND FILE INCORPORATION DOCUMENTS

Once the DSC and DIN have been obtained, the next step is to prepare and file the incorporation documents for the One Person Company. This includes preparation of the Memorandum of Association (MoA) and Articles of Association (AoA) which define the objectives and rules governing the company.

The following steps are involved in preparing and filing the incorporation documents:

1. Choose a Unique Name: Select a unique name for the One Person Company that complies with the naming guidelines provided by the Ministry of Corporate Affairs.
2. Prepare MoA and AoA: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) which define the objectives and rules governing the company.
3. File Forms with Registrar of Companies: Submit the incorporation documents along with other necessary forms to the Registrar of Companies for approval.
4. Obtain Certificate of Incorporation: Once the documents are filed and approved, the Registrar of Companies will issue a Certificate of Incorporation, officially registering the One Person Company.