One-Person Company (OPC) This concept is new in India, it is very popular overseas, including Singapore, America, even Europe. Currently, it is a gray area, and only time will tell how well it will work in India -
company. (1) Only a natural person who is an Indian citizen and resident in India-
(A) a person shall be eligible to join the company;
(B) A person shall be a nominee for a sole member of the company.
Features of an individual company:
Separate legal entity: OPC has the status of a separate legal entity from its promoters. Therefore, the entrepreneur is able to do what he wants.
Easy Funding: It is easy for OPC to raise funds through venture capital, financial institution or angel funding. You can also choose to raise funds by converting to a private limited company.
Limited Liability: OPC's liability is limited to the portion held by the individual. Therefore, it enables the person to take more risks in business. More opportunities are provided without affecting or suffering personal property damage.
Benefits of being a Small Scale Industry: Low rate of interest on loan, easy money from banks without security deposit, etc. can be availed. All these benefits help to establish a business in its early years.
Benefits of taxation: As per the Income Tax law, unlike the ownership, any remuneration paid to the director of OPC will be allowed as a deduction.
Increase in trust: The company form of business allows one to increase trust and reputation compared to other forms of business.
Get Interested on Late Payments: Under the Enterprise Development Act, 2006, an OPC can avail benefits as it is a newly start-up, micro, small or medium. It is entitled to the interest which is three times the bank rate.
The following documents can be provided in relation to the following heads:
In relation to a person
In relation to the registered office
In relation to the individual:
The persons engaged in the incorporation of OPC are subscribers, directors, and nominees. Customers and nominees in India will be separate residents. In addition, at least one director will be a resident. Therefore, where only one director is appointed, he will be resident only. Any person will provide the documents listed below:
A self-attested copy of the PAN card is a mandatory document to be provided in the incorporation process of company registration. The name appearing on the PAN card will only be taken in MCA records, so it is necessary to keep the PAN card up-to-date (in case of any change of name or marriage) at the time of submission of documents. Where an error is found in the PAN card details, the process may be delayed until its resolution.
For the purpose of proof of address, any of the above documents may be provided. However, the details of the document provided will be similar to the PAN card details. In case of any discrepancy, the same correction will do. Documents like election card, ration card, Aadhaar card, etc. can also be given as proof here.
Scanned copy of latest bank statement/telephone or mobile bill/electricity or gas bill: (self-verified by the person):
Bills that must be attached as resident proof and must be the latest or most recent which maybe 2 months old and not more than that in order to be accepted. It should contain the name of the person mentioned under the PAN card.
Scanned copy of passport size photograph
In relation to the registered office:
The address to be provided as a registered office for the proposed one-person company will be according to the proof of address given in that regard. The same address mentioned in the proof of address will be the same to be given in the application of incorporation.
The following documents are to be provided for proof of address of the registered office:
Documents stating the complete address of the property company, where the company will be registered, such as electricity bill/property tax bill/telephone bill, etc.
In the case of NOC, Rented Property: No objection certificate with valid rent agreement by the owners of the property.
One Person Company (OPC): Registration Process
According to the Ministry of Corporate Affairs, an individual company registration process can be detailed as follows:
Application for Digital Signature Certificate (DSC): To obtain DSC, the proposed director will need related documents; Address proof, Aadhaar card, PAN card, photograph, email-id, and phone number. DSC is important because all company registration processes are done digitally.
Application for Director Identification Number (DIN): The proposed director has to fill the form to avail of DIN. Details of the name and address proof of the director have to be submitted here. If the company already exists, then Form DIR 3 has to be filled.
Name Approval Application: The name for company registration can be approved either by applying in Form 32 or by using the RUN web service of the Ministry of Corporate Affairs. A preferred name must be given with the signature. Ministry proposed two names