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. 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 One Person Company (OPC) registration in India, to help experts and business people of the whole of India.
Who can be a Nominee of an OPC and what is his role?
Just a natural person
Person Resident in India
Rule 3 of Companies (Incorporation) Rules 2014 provides that:
A Nominee is a person who turns into a member of a company if there should a rise an occurrence of the promoter’s passing.
How to form an OPC in India? What are the Documents Required for OPC Registration?
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 “Resident in India” 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.
For incorporating an OPC in any place of India, involved are the following documents or to be performed with the important ROC:
Recording Form INC-1
Recording Forms INC-2 and INC-3
Recording Forms DIR-12 and INC-22
As a general rule, the documents needed for OPC enlistment anyplace In India, are following:
Racket, DSC, and PAN Card of the Director and Shareholder
Photos of Director and Shareholder
ID Proof and Address Proof of Director and Shareholder’s Address Proof of the location/registered office of the OPC
Furthermore, other important documents
What are the Advantages of Registering a Company as a One Person Company (OPC)?
Coming up next are the most remarkable benefits related to an OPC in India, over the private restricted or public restricted organizations:
To form an OPC, just a single Director is required.
Section 173 which directs that a limited company should lead somewhere around four Board meetings consistently, isn’t relevant for OPCs.
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.
An OPC additionally appreciates relaxations and exemptions from numerous other lawful, governance, promotion and administrative compliances.
The obligatory rotation of auditor at regular intervals period is additionally not material to an OPC.
Can an NRI Register a One Person Company in India? If yes, then what are the conditions for the same?
No. People other than an Indian citizen or a Resident in India, can register a One Person Company anyplace in India. This implies, a Non-Resident Indian (NRI), or a foreign citizen, can’t set up an OPC in India.
Can OPC be incorporated as Public Limited Company? Section 2(62) of the Companies Act 2013 defines “One Person Company”, means a company which has only one person as a member. Section 2(68) “private company” means a company having a minimum paid-up share capital as may be prescribed, and which by its articles,—
restricts the right to transfer its shares;
except in case of One Person Company, limits the number of its members to two hundred:
prohibits any invitation to the public to subscribe for any securities of the company
Subsequently OPC can be incorporated distinctly as a Private Limited Company having one individual as a member in particular.
No OPC can be consolidated as a Public Company or as Section 8 (Company not for Profit).
OPC can’t be joined as Holding Company or Subsidiary Company (either entirely claimed or somewhat owned subsidiary).
What are the restrictions in carrying on the activity of OPC?
OPC can’t carry on NBFC related exercises.
OPC can’t gain/invest into protections in its own name in other body corporate anyway members can invest into the shares of other body corporate.
OPC can’t issue or assign shares to anybody aside from its members.
Is audit compulsory for OPC?
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.
What is the difference between Sole Proprietor and OPC?
In a One Person Company, an individual runs a company restricted by shares though a Sole Proprietorship implies an entity that is controlled by one individual, and the proprietor and business are considered as a similar entity.
Is GST mandatory for OPC?
GST registration for a One Person Company is fundamental assuming that the supply of services and products is in another state regardless of yearly turnover.
How is the speed of Incorporation Process?
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.
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LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost.