WHAT IS ONE PERSON COMPANU REGISTRATION?

One Person Company (OPC) registration is a type of business structure in India that allows a single individual to operate as a separate legal entity. It was introduced in 2013 under the Companies Act to provide entrepreneurs with the benefits of limited liability while also allowing them to have full control over their business.

BENEFITS OF REGISTERING ONE PERSON COMPANY

One of the main benefits of registering a One Person Company is limited liability. This means that the individual’s personal assets are protected in case the company runs into financial trouble. 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 decision-making and operations of the business. Unlike partnerships or LLPs, where decisions must be made jointly with other partners, an OPC allows the owner to make all decisions independently.

Additionally, registering as an OPC can help in accessing funding 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 digitally signing documents 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: The 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 outline the objectives and rules governing the One Person Company and must be prepared and filed with the Registrar of Companies.
4. Proof of Registered Office: Documents such as lease agreement or utility bills must be submitted to prove the registered office address of the One Person Company.

KEY INFORMATION FOR OPC REGISTRATION

In addition to the documents mentioned above, there are some key points that entrepreneurs should keep in mind when registering a One Person Company. Firstly, 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 to consider during the registration process is the selection of a unique name for the One Person Company, which must comply with the naming guidelines provided by the Ministry of Corporate Affairs. The chosen name should not be similar to any existing companies in order to avoid any potential legal issues.

After selecting a name, the next step involves preparing and filing the incorporation documents including the Memorandum of Association (Mo A) and Articles of Association (AoA) with the Registrar of Companies. These documents outline the objectives and rules governing 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 necessary for digitally signing documents during the registration process. Here’s 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 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 in 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 preparing the Memorandum of Association (MoA) and Articles of Association (AoA) which outline 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: Draft the Memorandum of Association (MoA) and Articles of Association (AoA) which outline 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.