OPC is One Person Company. Similar to a Private Limited Company, a One-Person Company can be created in the same way. After the Companies Act of 2013 was passed, this kind of business was created. Because it makes it possible for anyone to start a business without having to worry about other shareholders or subscribers, this type of business has been promoted.
It has numerous benefits as well as drawbacks. Before discussing the advantages and disadvantages of an OPC, let’s briefly examine what an OPC (One Person Company) is.
The Companies Act of 2013 says that a person can start a business with just one member and one director. There is a possibility that the member and director are the same person.
As a result, a “One Person Company” allows a single person, whether a resident or an NRI, to start a business that combines the advantages of a “Sole Proprietorship” and a “Corporation.”
Features of OPC
OPC that has OPC registration in Chennai has the following features.
- It is run by people, but OPCs are separate legal entities like any registered corporation.
- OPC that has OPC registration in Chennai can have only one director and only one member at any given time.
- Both the member and the nominee should be real people who are citizens of India and live in India. A person is considered to be “resident in India” if they have resided in the country for at least 182 days in the year before.
- One individual cannot be the nominee for more than one OPC or incorporate more than one OPC.
- Within 180 days, a member of the OPC that has OPC registration in Chennai must meet the requirements for membership in one OPC if he becomes a member of another OPC as a result of being the nominee in that OPC.
- The OPC that has OPC registration in Chennai prohibits minors from becoming members, nominees, or holders of beneficial shares.
- Section 8 of the Companies Act of 2013 prohibits the incorporation or conversion of such a company.
- Except in cases where capital or turnover thresholds have the reach, such a company cannot voluntarily transform into any type of company until two years have passed from the date of incorporation.
- A private company that is already in existence is distinct from one that has registration under section 8 of the Act and has a paid-up share capital of Rs. 50 lakhs or less or an annual average of Rs. 50 lakhs during the relevant period. By passing a special resolution at the general meeting, a company with less than two billion dollars can have OPC registration in Chennai.
Rules for incorporating OPC
OPC registration in Chennai follows the rules.
- A one-person company can only be started by Indian citizens or by a person who has lived in India for at least one hundred and eighty days.
- A minor cannot hold a share with a beneficial interest or become a member or nominee of the One Person Company.
- Unless the threshold limit (paid-up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees. Such a company cannot voluntarily transform into any kind of company until two years have passed from the date of incorporation.
Requirements for OPC registration
OPC registration in Chennai needs the following requirements.
Shareholder
An OPC can only have one shareholder per person. OPC can get OPC registration in Chennai at an affordable cost.
To register the company, the Memorandum and Articles of Association should have the sign by the first shareholder.
Under the Companies Act of 2013, a limited company can only be registered by a person who is an Indian citizen and resides in India. Under the Companies Act of 2013, an OPC has charectarization as a Private Limited Company.
At any given time, OPC can only have one shareholder.
Additionally, an OPC that has OPC registration in Chennai cannot add shareholders to raise additional funds.
An OPC that has OPC registration in Chennai only allows individuals to become shareholders.
A company or LLP cannot join the OPC or can have OPC registration in Chennai.
Nominee Shareholder
At the time of OPC incorporation, the subscriber to the memorandum of a One-Person Company must nominate a person as Nominee with their written consent to become a shareholder in the event of the subscriber’s death or incapacity to contract.
A person can only have the nomination as the sole member of a One-Person Company if they are an Indian citizen and live in India. The nominee shareholder must sign a consent to act.
Directors
A One-Person Company (OPC) to have OPC registration in Chennai should have at least one director.
A company can only appoint individuals as directors.
OPC that has OPC registration in Chennai can have more than one director, and the directors do not have to be shareholders. To be a director of a company, a person must have a valid DIN.
The Ministry of Corporate Affairs will assign a Directors Identification Number (DIN) to directors who do not already have one during the company registration process.
Digital Signature Certificate
A valid Digital Signature Certificate issuance by a Certifying Authority (CA) in accordance with the Information Technology Act of 2000 is necessary for the proposed shareholder of an OPC. The shareholder of the nominee does not require a digital signature.
Full Name and Address:
Use a permanent address for the company at the time of registration, you have no necessary to file anything after the company has registration. This is to get OPC registration in Chennai.
The address specified on the registration forms must have inclusion in the Certificate of Registration in both instances.
The Certificate of Incorporation will not reflect any address changes made after the Company Registration.
Any correspondence or notice addressed to a business must have reception and acknowledgement by a registered office.
The company must submit a Form 22 verifying its registered office to the Registrar of Companies within 30 days of incorporation.
Registration process
OPC registration in Chennai follows the registration process as given below.
A. Application for Company Name
The applicant to have OPC registration in Chennai has two choices regarding how to proceed with the Company Name Application.
Choice 1
Obtain the Company Name Approval through the RUN Application Process, then apply for the Company Name Approval and Company Registration; or
Choice 2
Complete Step B of the Integrated Company Registration Form. The SPICe incorporation process lets you reserve the company name. Only one name can have submission for approval via the SPICe form for a name application.
However, the application can have submission two more times with alternate names if the first name applied for had rejection.
B. Providing MCA with Company Incorporation Documents:
The Company Incorporation Process is comprised of the preparation and submission of the flowing E-Forms as part of the SPICe incorporation process:
- Simplified Proforma for Electronically Incorporating a Company (SPICe) e-Form INC-32 e-Form INC-33: SPICe
- MoA (e-Memorandum of Association) e-Form INC-34: e-Articles of Association (SPICe AoA)
- All documents have signature, notarization, and attestation in accordance with the requirements.
Documentation must have attachment to the e-Forms INC-32, 33, and 34. And the e-Forms must have digital signature by all of the proposed shareholders. Or representatives using the Digital Signature Certificate (DSC).
If a company’s authorized capital is less than or equal to Rs. 10 lakhs at the time of registration, there is no registration fee for filing the e-Form INC-32.
However, any company must pay the e-Form INC-33/34 filing fee and stamp duty for OPC registration in Chennai.
C. Central Registrar of Companies (CRC) processes electronic forms:
The application had process by the Central Registration Centre (CRC). And the Central Registrar of Companies will register the business and issue the following documents if the necessary information is found to be correct:
Permanent Account Number (PAN) and Tax Collection and Deduction Number (TAN) for Directors in the Company Incorporation Certificate
The following conditions must be met before a company incorporated on or after February 11, 2018, with a share capital, can begin operations or exercise any borrowing powers:
- Declaring to the Registrar of Companies that each subscriber to the memorandum has paid the agreed-upon value of the shares on the declaration date.
- Within 180 days of the company’s incorporation, the company must submit this declaration in Form No. INC-20A
- If the company had registration with a temporary address, filing INC-22 for verification of its registered office alongside SPICe Form INC-32.
Every officer who is in default is subject to a penalty of one thousand rupees for each day that the default persists, up to a maximum of one lakh rupees, and the company as a whole is subject to a penalty of fifty thousand rupees if it fails to comply with the aforementioned requirements.
The Registrar may take action to remove the company’s name from the register of companies on the basis of a reasonable belief that the company is not conducting.
Any business or operations if the company has not filed the declaration within 180 days of the company’s incorporation date.
Benefits of OPC
- OPC registration in Chennai has he benefits as discussed below.
- No one can use your business name. It is easy to open a current account.
- OPC registration in Chennai shields you from personal liability and protects you from other risks and losses.
- It attracts more customers because it builds trust. It is easy to get a business loan from a bank and investments from dependable investors.
- OPC registration in Chennai provides liability protection to protect your company’s assets. It has the potential to grow big and expand because it improves brand recognition.
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