One Person Company Registration Checklist

What is One Person Company (OPC)?

The Companies Act 2013 has introduced the new concept of One Person Company which states that a person can register a company as a single owner of the business. 

Definition:

As per section 2(62) of the Companies Act 2013, One Person Company means a which is incorporated with one person as a member.

•        Features of OPC Registration:

 

1)           Only One Shareholder:

Only a natural person who should be resident individual is eligible to foam a One Person Company. (The term "Resident in India" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year)

2)           Nominee for the Shareholder:

The Shareholder has a right to nominate any person as nominee who can become the shareholders in case of death/incapacity of the original shareholder.  Such nominee shall give his/her consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person who is resident Indian citizen can become a nominee in the OPC

3)           Director:

Must have a minimum of One Director, the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15 directors.

 •       Terms and Conditions of One Person Company

1.           A person cannot incorporate more than a One Person Company or become nominee in more than one such company.

2.           Minor cannot shall become member or nominee of the One Person Company or can hold share with beneficial interest.

3.           An OPC cannot be incorporated or converted into a company under Section 8 of the Act. [Company not for Profit].

4.           An OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of anybody corporate.

5.           An OPC cannot get converted into any form of company voluntarily until two years from the date of incorporation of One Person Company, except in case where the threshold limit (paid up share capital) is increased beyond Rs.50 Lakhs or its average annual turnover during the relevant period exceeds Rs.2 Crores.

•       OPC Registration Procedure:

1.           Reservation application of name in INC-1

2.     Identity proof, address proof and PAN card copy of nominee and member

3.           Written Consent of Nominee in form INC-3

4.           Memorandum and Affidavit of sharer for form INC-9

5.           Application for Company Registration

6.           Registrar Office Address in Form INC-22

7.           Registered office's address proof

•       Documents required for One Person Company registration:

1.      PAN Card (Mandatory)

2.  ID Proof (passport, election (voter identity) card, Driving license, Aadhar card).

3.  Address Proof ( electricity bill, telephone bill, Mobile Bill , Bank Statement)

4.     Passport Size Photograph.

5.     Proof for Place of Registered office of the Company (Gas Bill/Telephone Bill/Electricity Bill/House Tax Receipt)

6.     NOC from the land owner for proof of Registered office of the Company

7.     Rent Agreement, if any