One-person company or OPC is a new form of business introduced by the Companies Act of 2013. In an OPC the owner of the company has a full authority to decide what is good or bad for his or her business and he or she can take steps accordingly. The said person is the director and the sole shareholder of his or her company and there are no equity or stock options until and unless the said company’s turnover and paid-up funds doesn’t exceed a certain prescribed threshold.
For staring an OPC you have to produce the following documents:
The procedure for incorporation of an OPC includes followings steps:
The first and foremost step is obtaining a digital signature certificate (DSC) of the director. It can be obtained by producing the following documents of the proposed owner: PAN card, Aadhaar card, address proof, email id, phone number, and the photo of the owner of the OPC.
After getting a DSC your next move is to apply for the Director Identification Number (DIN) of the director or proposed owner of the company along with the address and name proof.
The next step will be to deciding the name of your company. There are few steps that you have to follow for getting an approval of your company’s name, you can go to the next step once Ministry of Corporate Affairs (MCA) has approved the proposed name of your company.
There are some necessary documentations like Memorandum of Association and Articles of Association that has to be fulfilled for completing the registration process. These documentations lay down rules and regulations and objects that the company will follow after getting incorporated. Since an OPC has only one member and a director, therefore, a nominee has to be appointed on behalf of the person concerned. So that if anything happens to the original director of the company the nominee on his or her behalf can take the responsibility of the operations of the company.
All the necessary documents of the aforesaid OPC should be uploaded to the website of MCA for the approval. After uploading all the documents, you will receive Form 49A and Form 49B which are needed for generating TAN and Pan of your company. You also have to upload them after filling in all the details that are asked in these forms.
After you have completed all these steps then the only step remains of the verification by the Registrar of Companies (ROC). The ROC will issue the incorporation certificate once they are fully satisfied with all your documents. Once your certificate is issued then you can start commencing your business.
The registration process though is simpler but can be time-consuming. For registering an OPC it could take around 1 or 2 months depending upon the availability of the concerned authorities and the documentation that you are producing.