A Brief Overview of One Person Company Registration (OPC) in Jaipur

A relatively new concept of One Person Company (OPC) was introduced by the Companies Act, 2013 for people with dreams of entrepreneurship. The introduction took place for those who do not have much time, resources, or people for the execution of their business plan. It allows a single person to begin its venture as per the rules and regulations of the Companies Act, 2013. Due to its flexible nature, many people in the beauutiful city of Jaipur is now opting for OPC. OPC Registration in Jaipur is a very straightforward process and enjoys the unique features similar to a Private Limited Company.

Meaning of One Person Company (OPC)

Before the Companies Act, 2013 came into existence, there was no specific concept of OPC. Earlier people have the only option of Sole proprietorship, but the Companies Act, 2013 brings OPC as a new way of setting up a business by an individual. Hence, OPC can be incorporated just by a single person.

According to Section 2(62) of the Companies Act, 2013, an OPC can be just formed with just 1 director and 1 nominee. If we talk about its compliances, they are relatively less.

Governing Authority for One Person Company Registration in Jaipur

Ministry of Corporate Affairs (MCA) is the primary governing authority for one person company registration. Furthermore, the Registrar of Companies (ROC) of Jaipur established as per the Companies Act, 2013 is the authority which takes care of all the issues and matters in relation to One person company registration.

Advantages of One Person Company Registration in Jaipur

The following are the reasons or advantages due to which you should opt for One Person Company

• Separate Legal Entity: One Person Company, just like a Private Limited Company is a separate legal entity. This means that it can own a property in its own name and can sue in its own name, etc.
• No Minimum Capital Requirement: There is no criteria of having a minimum amount to start an OPC. However, please note that the maximum authorized capital should not go beyond Rs. 50 lakhs at any point.
• Sole Individual: OPC has a very unique feature of having just a single member to run it. There are no further additional responsibilities of recruiting another director to comply with the provisions of the Companies Act, 2013.
• Few Compliances: When we talk about compliances, they are very few. It ultimately results in less paper work and other processes which takes time to be carried out
• Easy fundraising: OPC has different sources of raising funds which include angel investors, financial institutions, venture funds, etc.
• Credibility: An OPC has an obligation to audit its books of account annually. Hence, this increases the credibility of the business and will, in return, increase customer satisfaction.
• Income Tax Benefits: Income Tax Act, 1961 allows any remuneration paid to the director as a deduction under its laws. Further, benefits of presumptive taxation are also given which is not in the case of Proprietorship.
• Easy Incorporation: OPC formation is quite easy as it just requires one member and one nominee. Furthermore, the process is completely online and does not require much time to get an incorporation certificate.

Checklist for OPC Registration

• The person forming an OPC should not be less than 18 years of age.
• A person who is an Indian citizen and resident in India can form an OPC
• At least one nominee and one director are required.
• A nominee should give his/her consent in Form INC-3 before incorporation
• Digital Signature Certificate of the proposed director
• Minimum authorized capital of INR 1 lakh

Documents Requirement for OPC Registration in Jaipur

Before you plan to register OPC, make sure you are ready with the following documents:

1. For Director/Nominee

• A Scan copy of PAN Card
• Copy of Voter ID/Driving License/Aadhar etc.
• Latest Bank Statement
• Passport size photograph
• Consent of Nominee in Form INC-3
• Declaration and consent of the proposed director in Form INC-9 and DIR-2

2. For the registered office

• Notarized rent agreement, in case the premises is on rent
• NOC from the owner
• Any Utility Bill of the premises

Process of OPC Registration

The following process needs to be followed while registering an OPC in Jaipur:

Step 1: Obtain DSC (Digital Signature Certificate) of the proposed director

As the process is completely online now, hence authorized signatories/directors have to sign the various forms of incorporation through DSC only. Hence, the proposed director has to apply for DSC through a certified agent.

Step 2: Application to MCA through SPICe + web form

The applicant has to make an application for incorporation through the SPICe form. Applicant can avail the facility of name reservation, allotment of Director Identification Number (DIN), Company incorporation, PAN and TAN Allotment

It can be made in two different ways:

• SPICe + form without filing RUN: In this case, an applicant can just skip the facility of name reservation and can directly file the name it requires. In case there are chances that your name gets rejected. Hence, it is vital to file a RUN form for a name reservation.
• SPICe + form with RUN: If you are planning to file a name through RUN form, then you can avail of this and reserve your unique name. After name approval, the SPICe form has to be filed within 20 days from the approval of the name through RUN.
• Fill Form INC-3 online: Consent and details of the nominee have to be filled in Form INC-3 online. It will further go as an attachment with the SPICe + form.
• File incorporation forms along with attachments: Apart from the SPICe form, you are also required to upload e-M0A (Memorandum of Association), e-AOA (Article of Association), and AGILE-PRO-S with the Registrar along with the following attachments:
  • A Scan copy of PAN Card
  • Copy of Voter ID/Driving License/Aadhar etc.
  • Latest Bank Statement
  • Passport size photograph
  • Consent of Nominee in Form INC-3
  • Declaration and consent of the proposed director in Form INC-9 and DIR-2
  • Notarized rent agreement, in case the premises is on rent
  • NOC from the owner
  • Any Utility Bill of the premises
• Generation of PAN and TAN: After uploading the required online forms, you will also receive the TAN and PAN of your OPC.
• Issuance of Certificate of Incorporation: As soon as the documents are examined by the ROC, it will issue a Certificate of Incorporation within 2-3 working days. Now you are eligible to launch your business.

Mandatory Annual Compliances of OPC

• A minimum of 2 Board Meetings has to take place as per Companies Act, 2013
• Auditor Appointment
• Income Tax Return Filing
• Annual Filings through Form AOC-4 and MGT-7 with ROC
• Statutory Audit
• Maintaining Statutory registers and Minutes book

Final Words

OPC is a forward-thinking notion especially for those who dream of having their own business in Jaipur. It is considered as an amalgamation of a Private Limited Company and a Sole Proprietorship, thereby enjoying the benefits of two worlds. Furthermore, the regulation under the Companies Act, 2013 brings more transparency and legal protection to the person forming OPC.