Procedure to Incorporate One Person Company in Rajasthan

Are you also interested in learning how to incorporate a One Person Company in Rajasthan? Great, you’ve come to the right place. Our Legal Window experts have done their best to make this complicated procedure as simple as possible for you, so let’s get started. One Person Company (OPC) registration is a novel idea that overcomes the restrictions of resources, time, and channels for obtaining more partners for the implementation of business plans, allowing us to promote the incorporation of micro-businesses and achieve our entrepreneurial goals. So let us briefly discuss about the incorporation process of One Person Company in Rajasthan in this article.

Meaning of One Person Company

One Person Company (OPC) Registration in Rajasthan is the latest form of business structure in India which was introduced by the Companies Act, 2013 and the abbreviation OPC stands for One Person Company. This business structure was launched to support the business ideas of people who have a higher potential to start a business as a one-member army. These businesses are usually micro-enterprises where the turnover is unlikely to exceed Rs. 2 crores even in the best scenarios.

One Person Company OPC Registration in Jaipur, Rajasthan can be started as per the guidelines of the Companies Act 2013. Anyone can start a company all by himself without having to go through complicated procedures involving partners. This law made starting a business easier and more encouraging. OPCs are an important factor in the development of the overall economy of a country as OPC entitles a single person running a business to bank loans and credit points etc.

Registration of One Person Company in Rajasthan

Rajasthan is India’s largest state by area sharing borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and Gujarat. Major industries in Rajasthan include major industries such as cement, automobile components, ball bearings, sugar, chemicals, dyes, textiles, woolen products, carpets, vegetable oil like mustard and soybean, etc. Heavy industries in the state of Rajasthan include such as copper and zinc smelting along with the production of railway rolling stock. Rajasthan’s key business strength is mineral-based industries, tourism, textiles, gems, and jewelry. It is the largest producer of stone and marble in the country with deep mining all over the state.

Rajasthan is a state with the agriculture sector contributing more than 25% of the state’s GDP in the last fiscal year. The state of Rajasthan provides extensive opportunities in the field of organic and contract farming and is among the largest producers of cereals, pulses, oilseeds, garlic, and coriander.

The state has more than 850 enterprises/plants in the food processing sector and offers much more potential. Rajasthan is one of the highest mineral-producing states and the only lead and zinc-producing state in India. With a large supply of limestone, it offers a suitable destination for the cement industry. The tourism industry is also very flourishing in the state of Rajasthan with more than 50 million tourists visiting the state every year. Rajasthan is a major tourist destination and attracts tourists from all over the world.

Do You know that, Legal Window being a Rajasthan based Firm can help you with registration of your One Person Company in Rajasthan, just connect with them on 072407-51000 or email admin@legalwindow.in for One Person company registration and Compliance services.

Features of One Person Company

Features of One Person Company (OPC)are as follows –

• Sole Member – In the case of One Person Company (OPC), there is only one partner or shareholder.
• Nominee – In the case of One Person Company (OPC), it is a unique feature that when a member of such One Person Company (OPC) registers the One Person Company (OPC), he mentions the name of the nominee.
• No Minimum Paid-Up Share Capital – There is no prescribed amount of minimum paid up share capital under the Companies Act, 2013 in the case of a One Person Company (OPC).
• No Perpetual Succession – In the case of One Person Company (OPC) there is only one person to carry on all the business activities, in the case of the death of such person, if the nominee refuses to become the sole member of such One Person Company (OPC) then such company will be wound up.
• Special Privileges – There are several privileges and exemptions under the Companies Act 2013 when it comes to One Person Company (OPC).
• Annual Return – As per section 92 of the Companies Act, 2013 an annual return is required to be filed and should be signed by the Company Secretary and the board of directors of the company. But in the case of One Person Company (OPC), the annual return must be signed by the director of the company.

Documents required for One Person Company Registration

The following are the documents required for the registration of OPC in Rajasthan:

• Passport-size photo of the member.
• Copy of Member’s PAN Card.
• Proof of identity of the owner (copy of Aadhaar card, copy of voter card).
• Address proof of the office address (lease agreement and NOC from the owner, if it is a rented property, and a deed of sale, if it is an owned property).
• Recent bank statements and any other account that contains the name of the owner of such company.

Procedure for Registration of One Person Company

The following is the procedure for the registration of One Person Company:

• Apply for Digital Signature Certificate (DSC) – Before applying for One Person Company (OPC) registration, the proposed director will apply for Digital Signature Certificate (DSC) as now all activities for company registration are complete. Online and digital signatures are required to apply for registration, so we will first apply for a Digital Signature Certificate (DSC). The following documents are required to apply for a Digital Signature Certificate (DSC):
  • Address Proof of such person.
  • Passport-size photograph of the proposed director.
  • Copy of PAN Card of the proposed director.
  • E-mail address of the proposed director.
  • The phone number of the proposed director.

• Apply for Director Identification Number (DIN) – When a person obtains a DSC, he applies for a Director Identification Number (DIN), and this application is made on the SPICe form and the person provides all the required details and submits this form along with the required documents.
• Application for name approval – After obtaining a Director Identification Number (DIN), the person applies for name approval. The name of the One Person Company (OPC) will be in the form “XYZ (OPC) Private Limited”. To approve a name, a person submits a SPICe+ 32 application form and submits this form along with a unique name.
• Preparation of the required documents – We will prepare all these required documents and submit them to the company register within the specified period-
  • The Memorandum of Association (MOA) of a company will contain the objective of such company and all relevant details regarding the company.
  • Article of Association of the company which will contain the rules and regulations of the companies.

• Appointment of Trustee: In the case of an OPC, a person appoints a trustee and upon the death of such person, that trustee will carry out all business activities on his behalf. In this regard, the person fills his consent in Form INC-3 along with his PAN and Aadhaar card.
  • Address Proof of domicile together with proof of ownership (in which the property is owned) or lease agreement (in which the property is leased).
  • The person shall submit the declaration and consent of the nominated director through Form INC-9 and DIR-12.
  • He shall also submit a declaration, which is certified by an expert, that all the matches are correctly drawn up.

• Submission of Required Forms with MCA – After preparing all the required documents, SPICe submits the form and uploads all these required documents (discuss above) to the MCA Portal for approval.
• TAN & PAN – Separate application for TAN & PAN of OPC is not required. TAN & PAN are generated automatically at the time of formation of Sole Proprietorship.
• Issue Certificate of Incorporation – When the person submits all the required forms and uploads all the relevant documents, the Registrar of Companies will issue a Certificate of Incorporation after investigation.

Final Words

Before the establishment of an OPC, the only option was to run a sole proprietorship concern, and the biggest disadvantage to a sole proprietorship concern is that it has unlimited liability. The best alternative for a small business structure is to register your company as an OPC. However, this could not work if you intend to expand it up to higher levels. There is always just one person in an OPC at any given moment. You cannot register your firm as an OPC if you want to increase both the number of shareholders and the number of members. OPC is therefore unlikely to raise further money. This will prevent firms from expanding and growing.

OPC is prohibited from engaging in non-banking financial investment operations under the norms and regulations. It is not possible to invest in the safety of other businesses by registering as an OPC. Hence, we suggest you to consult with our Expert at Legal Window before you proceed further to One Person Company Registration in Rajasthan