{"id":105878,"date":"2022-01-21T16:19:34","date_gmt":"2022-01-21T10:49:34","guid":{"rendered":"https:\/\/legalwindow.in\/?p=105878"},"modified":"2022-01-27T17:08:50","modified_gmt":"2022-01-27T11:38:50","slug":"faqs-on-registering-a-one-person-company-in-india","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/faqs-on-registering-a-one-person-company-in-india\/","title":{"rendered":"FAQs on Registering a One Person Company in India"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105885 size-full\" title=\"FAQs on Registering a One Person Company in India\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India.png\" alt=\"FAQs on Registering a One Person Company in India\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/FAQs-on-Registering-a-One-Person-Company-in-India-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Presented in India by the new Indian Companies Act of 2013, the <a href=\"https:\/\/legalwindow.in\/introduction-of-one-person-company-opc-in-india\/\" target=\"_blank\" rel=\"noopener\">One Person Company (OPC)<\/a> is absolutely a welcome means for innovative or entrepreneurial foundations by people. This type of Company joins the advantages presented by sole proprietorship and an appropriately incorporated limited company. The essential benefits presented by an OPC are the characteristics of being a different legal entity, limited responsibility, simplicity of formation and lesser administration and regulatory compliances. Subsequently, the OPCs are quick becoming famous in India likewise, and our reputed law office of India has consequently been expanding productive and inexpensively charged administrations for incorporating these OPCs in places all over India, for past numerous years. This article lists down all the Frequently Asked Questions (FAQs) related to the <a href=\"https:\/\/legalwindow.in\/one-person-company\/\" target=\"_blank\" rel=\"noopener\">One Person Company (OPC) registration in India<\/a>, to help experts and business people of the whole of India.<\/span><\/p>\n<ul>\n<li><b>Who can be a Nominee of an OPC and what is his role?<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Just a natural person\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Indian citizen;\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Person Resident in India<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Rule 3 of Companies (Incorporation) Rules 2014 provides that:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A Nominee is a person who turns into a member of a company if there should a rise an occurrence of the promoter&#8217;s passing.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>How to form an OPC in India? What are the Documents Required for OPC Registration?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To form a One Person Company anyplace in India, the concerned director should be either an Indian citizen or a Resident in India. A minor, foreign citizen\/resident or NRI are confined from incorporating an OPC in India. A &#8220;Resident in India&#8221; is an individual who has lived in any place of India for a time of no less than 182 days in the immediately preceding year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For incorporating an OPC in any place of India, involved are the following documents or to be performed with the important <a href=\"https:\/\/legalwindow.in\/roc-llp-annual-filing\/\" target=\"_blank\" rel=\"noopener\">ROC<\/a>:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recording Form INC-1<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recording Forms INC-2 and INC-3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recording Forms DIR-12 and INC-22<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a general rule, the documents needed for OPC enlistment anyplace In India, are following:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Racket, DSC, and PAN Card of the Director and Shareholder<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Photos of Director and Shareholder<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ID Proof and Address Proof of Director and Shareholder\u2019s Address Proof of the location\/registered office of the OPC<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Furthermore, other important documents<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>What are the Advantages of Registering a Company as a One Person Company (OPC)?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Coming up next are the most remarkable benefits related to an OPC in India, over the private restricted or public restricted organizations:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To form an OPC, just a single Director is required.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Section 173 which directs that a limited company should lead somewhere around four Board meetings consistently, isn&#8217;t relevant for OPCs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The provisions and guidelines given in Section 98 and Sections from 100 to 111, which relate to regular meetings, are additionally not material to OPCs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An OPC additionally appreciates relaxations and exemptions from numerous other lawful, governance, promotion and administrative compliances.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The obligatory rotation of auditor at regular intervals period is additionally not material to an OPC.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Can an NRI Register a One Person Company in India? If yes, then what are the conditions for the same?<\/b><\/li>\n<\/ul>\n<p>No. People other than an Indian citizen or a Resident in India, can register a One Person Company anyplace in\u00a0 \u00a0 India. This implies, a Non-Resident Indian (NRI), or a foreign citizen, can&#8217;t set up an OPC in India.<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Can OPC be incorporated as Public Limited Company?<br \/>\n<\/b><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\" target=\"_blank\" rel=\"noopener\">Section 2(62) of the Companies Act 2013<\/a> defines \u201cOne Person Company\u201d, means a company which has only one person as a member. Section 2(68) \u201cprivate company\u201d means a\u00a0company having a minimum paid-up share capital as may be prescribed, and which by its articles,\u2014\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">restricts the right to transfer its shares;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">except in case of One Person Company, limits the number of its members to two hundred:\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">prohibits any invitation to the public to subscribe for any securities of the company<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subsequently OPC can be incorporated distinctly as a Private Limited Company having one individual as a member in particular.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0No OPC can be consolidated as a <a href=\"https:\/\/legalwindow.in\/public-limited-company\/\" target=\"_blank\" rel=\"noopener\">Public Company<\/a> or as Section 8 (Company not for Profit).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">OPC can&#8217;t be joined as Holding Company or Subsidiary Company (either entirely claimed or somewhat owned subsidiary).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No OPC can be converted into a <a href=\"https:\/\/legalwindow.in\/section-8-company-npo\/\" target=\"_blank\" rel=\"noopener\">Section 8 Company<\/a><\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>What are the restrictions in carrying on the activity of OPC?<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">OPC can&#8217;t carry on NBFC related exercises.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">OPC can&#8217;t gain\/invest into protections in its own name in other body corporate anyway members can invest into the shares of other body corporate.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">OPC can&#8217;t issue or assign shares to anybody aside from its members.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>\u00a0Is audit compulsory for OPC?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For an OPC Audit review is compulsory. A company needs to delegate a CA as the reviewer of the Company. The auditor needs to check the books of accounts and issue a Statutory Audit report.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>\u00a0What is the difference between Sole Proprietor and OPC?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In a One Person Company, an individual runs a company restricted by shares though a <a href=\"https:\/\/legalwindow.in\/proprietorship\/\" target=\"_blank\" rel=\"noopener\">Sole Proprietorship<\/a> implies an entity that is controlled by one individual, and the proprietor and business are considered as a similar entity.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>\u00a0Is GST mandatory for OPC?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/legalwindow.in\/gst-registration\/\" target=\"_blank\" rel=\"noopener\">GST registration<\/a> for a One Person Company is fundamental assuming that the supply of services and products is in another state regardless of yearly turnover.<\/span><\/p>\n<ul>\n<li><b>How is the speed of Incorporation Process?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Guarantee that the name you pick is extraordinary and you have every one of the necessary documents before the course of incorporation for quick incorporation.<\/span><\/p>\n<p><a href=\"https:\/\/legalwindow.in\/one-person-company\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105888 size-full\" title=\"One person company Registration in India\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/imgpsh_fullsize_anim-27.jpg\" alt=\"One person company Registration in India\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-27.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-27-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-27-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/imgpsh_fullsize_anim-27-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Presented in India by the new Indian Companies Act of 2013, the One Person Company (OPC) is absolutely a welcome means for innovative or entrepreneurial foundations by people.&hellip;<\/p>\n","protected":false},"author":3,"featured_media":105884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-105878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FAQs on Registering a One Person Company in India &#187; 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