What is an OPC Registration Strategies? Do you have any idea about this? One person company was introduced by the Companies Act, 2013 in India. OPC is helpful for entrepreneurs to start a business if they have interest on it. The registration rules are strictly prohibits non-banking financial Institutions for OPC registration. It encourages self-employment category within the limit of India’s legal System. Who is eligible to start the business as one person authority? There should be one person who can be the member as OPC. Likewise, he should be the resident in India for more than 182 days to form a one person company. The member of an OPC cannot register or cannot be the part of more than one OPC.
Advantages of OPC Registration Strategies
- Separate Legal Entity
- Easy funding
- Limited responsibilities
- Small scale industry benefits
- Benefits in taxation
- Trust
- Late payment interest
- Requirements in compliance
Separate Legal Form: To being a separate legal form, OPC enjoys separate legal form from its promoters. They have the rights to do whatever they want to do. They are having unlimited rights to do whatever they want to do. OPC members are having rights to raise the funding easily. They can raise the funding via venture capitals, angel funding etc. Some persons can raise the funding via converting into a Private limited company. Each individual person in an OPC have limited responsibilities to the extent of shares held by them. This may cause more risks in a business.
Process of OPC Registration Strategies
Opportunities are providing without affecting the personal assets. As a small scale industry, OPC is having certain advantages like lower rates of interest on loans, easy funding from banks without security deposits, etc. There are some taxation benefits as well. As per the Income Tax law, the remuneration paid to the director of an OPC will calculated for deduction. OPC gives the increased trust and prestige than other forms of business. We can acquire interests on late payments. According to the Enterprises Development Act, 2006 OPC can get benefits because it is newly start-ups, small or medium. We gets interests on late payments that is greater than three times from the bank rates. When we compared with the private limited company the compliance requirements are very less.
Limitations of Single person economic entity
Each and every OPC must have to nominate a director in the Memorandum of Association and Article of Association of the company. It will reveal the full details of the person who is eligible to become the director if the Sole Director is disable. If the annual turnover of the company exceeds the limit of 2 crore rupees, then the OPC will convert into private limited one and additionally all the financial statements must be filed with the Ministry of Corporate affairs at the end of each financial year. The below are the main criteria to avoid certain persons to form an OPC. The lists includes Minors, Non-resident, foreign citizens or the ones who is incapacitates by contract. It is important to accept and consider all the advantages and disadvantages of a single centric firm before an entrepreneur to be incorporated.
Registration process of One Person Company
One person company registration process can be detailed according to the Ministry of Corporate Affairs.
- Application for DSC: To obtain a digital signature certificate, he proposed director need to submit the below copies regarding address proof, Aadhaar card, PAN card, email-ID, photography of the Applicant, and the registered phone number. Digital signature certificates are important to register all the company related registration process because nowadays everything is done digitally.
- DIN Application: To get the benefits of Director Identification Number the proposed director will have to fill the SPICe Form. Here the directors name and address proof etc. has to be submitted. If the company or the firm already exists, then DIR-3 has to be filled by the Director.
- Name approval Application: The name approval of the company can be registered by two ways. One is to file the Form SPICe 32 or by using RUN web service of Ministry of Corporate Affairs. The preferred name along with the signature has to be given. We can submit two names with a single submission. If the name gets approval then affix private limited at the end. For example: ABC (OPC) Private Limited. You can conduct a free company name search with us.
Documents required for submitting to the RoC
Here we are going to discuss about the documents requirements to the Registrar of Companies (RoC).
- MoA (Memorandum of Association) stating the business for which an OPC will be registered.
- Bye-laws for the operation of a business stated by the Article of Association.
- Every OPC should appoint a nominee to avoid certain situations like director get passed away, or become incapacitated or is unable to perform his duties.
- Registered company office’s proof. The Ownership proof and the NOC of the owner.
- Proposed Director’s agreement and the affidavit
- Professional declaration to state that all the compliances have been made for the company.
Filing forms with MCA: To complete the OPC Registration all the above mentioned documents have to attach with SPICe Form, SPICe- MoA, and SPICe-AoA along with the DSC. The DSC should be directors or any professional’s. The same documents will be uploaded by the MCA on the website for getting approvals. After attaching the DSC of the director, PAN and TAN also uploaded to MCA for OPC Registration.
Issuance of Incorporation Certificate
After completing all the verification process, RoC will issue a registration certificate for the company. So after this process, the company can commence the business.
Post OPC Registration
The post OPC Registration is mandatory or it is the duty of every OPC to follow the basic mandatory compliances.
One board meeting should have to conduct within 6 months. The gap should not higher or less than 90 days.
Proper account books have to carry by the company directors
Statutory financial audits also have to follow and maintain
Every 30th September income tax returns have to file without fail.
Financial statements in Form AoC-4 and Form MGT 7 contain RoC annual returns.
OPC still in Fashion?
Do you think that OPC or One Person Company are still in fashion? Here I am telling you how it is. Most of the single entrepreneurs are working hard to become a profit organization. They do not have to find a place for the co-director post. OPC came into force under the companies Act, 2013. One Person company as the name suggests, it has only one member as a director and a member. It is the combination of a private limited company and a sole proprietorship Company. If a person wants to be the only one or does not want to share his ideas or profits, then he can adapt to One person Company. After the death of the director the company details and profits/losses are shared to the person who is hired by the OPC Member when he is alive.
Incorporation in a single Paragraph
OPC Registration can be done by filling a single application form, INC-32 (SPICe), which shall be filed with the Registrar of Companies. The registration process can be continued along with the consent of the nominee obtained in form INC-3 and the particular fees provided in the Companies Rules, 2014. The company should have to submit MoA and AoA at the time of registration process. After the INC-32 filing Form DIR-12 has to be submitted. If in case of the correspondence and office address misclarification or not same, in such situation OPC have to file INC-22 within 30 days of Incorporation.
What are the features of OPC?
Only One shareholder
Any person who is an Indian Citizen or or resident in India shall be eligible to opt One person company as a profit organization. The Indian Citizen in the sense, the person must be a resident in India not less than 182 days in the immediately preceding one calendar year.
Nominee for the shareholder
The shareholder’s nominee can be any person who is an Indian Citizen. The nominee can submit a consent and that consent is considered for the nominee post opening. The nominee can become the shareholder of the company after the death or incapacity of the actual shareholder of the OPC.
Director
In an Opc there is a minimum of 1 director is required and the sole shareholder can himself opt for the position of sole director. Likewise, the maximum director count is 15.
Conclusion
One Person Company is a new form of business and there should be one operator who has to operate the corporate single- handed. The time taken to register an OPC is 10-12 working days. We Corpstore enables hassle free registration at ease of cost. Our company located at the center of Coimbatore. We are also enables all the types of Company Registration Services at low cost.
