One Person Company Registration
Before the enactment of the Companies Act of 2013, the formation of a company in India necessitated at least two individuals. However, with the advent of this legislation, there’s a notable shift towards promoting One Person Companies (OPCs). The Companies Act of 2013 specifically facilitates the creation and operation of OPCs in India, allowing a single individual to spearhead such entities. While traditional private companies mandate a minimum of two directors and two members, a One Person Company is a departure from this norm, as it can be formed by a single person. The legal framework supporting OPCs in India is outlined in Section 262 of the Companies Act of 2013. The OPC Registration process requires the representation of the entire company by a lone director and a single member. Noteworthy is the streamlined compliance structure associated with OPCs, which imposes fewer responsibilities compared to traditional private companies. This legal provision offers a simplified avenue for individuals looking to establish and operate companies independently in India.
Features of One Person Company in India
1. Simple Succession:
Even though the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.
2. Limitation of Liability:
A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.
3. Shareholder and sole directorship:
In a one-person company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.
4. Ownership of Real Estate:
Because the OPC is considered a separate legal organization, the individual can possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.
Documents Required for OPC Registration in India
Following are the crucial documents required for One Person Company Registration in India
A scanned copy of a current bank statement:
Bank statements can be accessed via Internet banking or by visiting a bank branch. Account statements and transaction summary statements are two additional common titles for them.
A phone bill, an electricity or gas bill, and a mobile bill:
- Utilities often include power, gas, water/sewage, and garbage disposal. Other services, such as internet, cable TV, and phone service, are occasionally viewed as extra utilities because they are now considered standard in the majority of Indian households. The cost of utilities might vary greatly based on your location, the temperature where you reside, and your usage habits. As a result, these are also presented as critical documents for OPC Registration.
Rental agreement in English, digitally transcribed:
- Tenants are frequently given hard copies of rental agreements. This must be scanned and submitted to the appropriate authority for documentation.
A digital transcription of a landlord’s no-objection certificate:
- This document comes from the specific landlord. Section 12 of The Companies Act, 2013 requires that every corporation maintain a registered address. When a company is incorporated in India, the registered address is attached to the SPICe+ form. If the business’s address changes after formation, a Form INC-22 notification of the company’s new registration address must be sent to the ROC.
A scanned copy of the property or sale deeds in English (if the property is owned):
- A sale deed is a legal document used in real estate transactions to confirm the purchase of property and the transfer of ownership from the seller to the buyer. This is the primary ownership transfer documentation. A sale deed is also known as a conveyance deed or a final deed.
Procedure for One-Person Company Registration
Following is the procedure for One Person Company Registration in India:
Step 1:
Even though the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.
Step 2:
A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.
Step 3:
In a one-person company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.
Step 4:
Because the OPC is considered a separate legal organization, the individual can possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.
Step 5:
The ROC issues a certificate of incorporation with a PAN and TAN.
Step 6:
Open a bank account and get your business started.
The entire procedure of OPC Registration can be finished in only 20 days. All you have to do is contact RegisterKaro and complete the process as soon as possible.
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