One Person Company registration is extremely popular with small ventures that gradually get a corporate identity and the chance to expand globally. A One Person Company shares certain features with a Sole-Proprietorship as well as a Private Limited Company. This new business structure that comprises of only one member was introduced in 2013 by means of The Companies Act. It can only be formed by a person who is a resident of India. Moreover, it has the additional advantage of liabilities being solely limited to business assets.
Advantages of Setting Up a One Person Company Registration :
After electronic submission of forms to Ministry of Corporate Affairs, it has become mandatory to attest the electronic forms or documents by digitally certifying it with an individual's signature through DSC. DSC is just an electronic format of physical signature and can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
Director Identification Number is a unique identification number, which is required to be obtained by each person who wants to be a director in the proposed or existing company. Director Identification Number is valid for a lifetime.
The authorised capital of a Company is the amount up to which a company can issue shares. The government fee for companies having share capital depends on the amount of authorised capital.
It is always better to take care that the name we select should not be similar to any other existing PVT LTD Company, OPC, LLP or Public Company. Also, do check if the name is not a registered trademark taken by anybody under IP Act. The name should not be too generic to be accepted by ROC also.
A company is promoted to carry out particular activities. These activities are otherwise called as objects of the company. The Main objects of the company for which the company is registered should be detailed in Memorandum of Association of the Company.
An OPC registration can be done in 14 days. However, time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. It is always better to choose a unique name for the company.
OPC registration can be done with one person as a member. He has to appoint a nominee.
Only 1 director is required for an OPC registration (Maximum number of directors can be 15, which can further be increased by way of passing of special resolution).
A nominee is a person who shall, in the event of the promoter member's death or incapacitation, become a member of One Person Company.
A natural person, who is an Indian citizen and resident in India, shall be eligible for an OPC registration as its member and a nominee for the sole member of an OPC.
There is no minimum capital requirement for an OPC registration. It can be done with any amount of capital.
OPC is a private company with some unique features.
If a person alone wants to run a business by way of incorporating a company, he can opt for an OPC and very less compliance are required to be done by an OPC and timeframe for incorporation of an OPC is comparatively less than any other form of entity.
At least one Board Meeting should be conducted by an OPC in each half of a calendar year, and the gap between 2 sessions should be at least 90 days.
There is no such requirement of holding any general meeting for passing any resolution; it is just a means of communication between the company and the members and recording of the resolution in the minute's book will be sufficient to transact any business.