Companies Act - Procedure to register One Person Company
Introduction
We have seen what is one person company and how it is different from sole proprietorship in earlier blog post.
In this part we will discuss the procedure as to how to register one person company.
In Companies Act, "Memorandum" word is used so many times and at so many places. Even to register a One Person Company, you have to prepare a memorandum. What's this memorandum ?
It's a document recording the terms of a contract or other legal details.
Registration of One Person Company
Eligibility to register OPC
- Person must be natural. Not allowed for legal/artificial persons such as company.
- He/She must be Indian Citizen
- He/She must be resident of India
- Stayed in India in preceding calendar year for 182 days
- Not a minor
About other person/nominee
For registration of One Person Company, as usual you have to prepare memorandum.
One important thing in this memorandum is name of other person. You are registering a small business as One Person Company. But while registering you have to name one other person who will become member after your death or your incapacity to contract.
Such other person must have given you written consent before going for registration.You have to file that consent to the registrar of company.
That other person also have right to withdraw consent.
Now assume you registered your one person company. Can you change the name of other person which we have discussed above ? Answer is YES. You can change name of other person any time.
We will refer One Person Company as OPC hereafter. Typing is difficult task!
Can any Person (Person from jurisprudence) eligible to register OPC ? Can Legal/Artificial Person register OPC ? Answer is NO. Only natural person can register OPC.
Eligibility for other person
They are same as eligibility for OPC
How many companies you can form as OPC?
You can form only ONE opc. You can be member in one OPC only. Similarly, you can be nominee in only ONE opc.
Other important points regarding OPC
- OPC cannot be converted to Section 8 Company.
- OPC is private company, however you can convert it into private/public. Rule 6/7 of Chapter 2.
- OPC cannot carry out Non Banking Financial Activities. Like lending/deposits etc.
- OPC cannot be converted to other form for at least 2 years, however in below circumstances it can be voluntarily converted
- Paid up share capital is increase beyond 50 Lakh
- Annual turnover exceeds 2 Crore Rupees
Punishment
In case provisions relating to OPC are violated, person or officer can be fined up to 10000 Rs. If such violation continues then additional fine of 1000Rs per day can be imposed.
But it didn't answer how to register. How to register anyway ?
You can do it online/offline. Submit the application to regional offices of Registrar of Company. For online here are few steps:
Here is what you’ll need
to acquire:
i. A Digital Signature Certificate(DSC)
ii. A Director Identification Number (DIN)
iii. Registration on the MCA Portal or New user registration
iv. Certificate of Incorporation
i. A Digital Signature Certificate(DSC)
ii. A Director Identification Number (DIN)
iii. Registration on the MCA Portal or New user registration
iv. Certificate of Incorporation
Nice blog.. visit our website to know more about OPC registration
ReplyDeleteA business owned by only one single person is classified as a One Person Company (OPC), according to Section 2 of the Companies Act, 2013. One person Company Registration is certainly significant before any formation starts a business. Contact Us: +91 8929218091
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