One Person Company (OPC) Registration
As the name suggests, the concept of One Person Company(OPC) was introduced through the Companies Act, 2013 to support entrepreneurs in India. Entrepreneurs who on their own are capable of or prefer starting a venture. The idea of OPC, allows them to create a single person legal and financial entity.
One of the biggest advantages of OPC is that there can be only one member in the company, while as we know a minimum of two members are required for incorporating any Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is offering limited liability protection as it functions as an independent legal entity to its sole founder.
Though a One Person Company allows alone Entrepreneur to operate a corporate entity with limited liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company – who will be acting director of the OPC in case the sole Director is unavailable. Also in terms of financial limitations, a One Person Company must be changed to a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of financial year. Therefore, it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation.
- One Shareholder
- One Director
- One Nominee
- DIN for all the Directors
- At least one Designated director should be an Indian Resident
Q. What is the minimum requirement of members to start a One person Company?
A. Minimum requirement of Capital Is same as that of Private Company i.e, 1 lakh Rupees.
Q. Do I need to physically present during this process?
A. No. Process of Incorporation is an online Process therefore it is not required for a person to be present physically.
Q. Is registration required to be renewed every year?
A. Once the company is registered, it will be valid till it is closed down. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Q. What is authorised and paid up capital?
A. Capital of the Company means the investment made by the shareholders into the company. Authorised capital is an amount up to which company can issue shares. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
Q. Is there any threshold limits for an OPC to mandatorily get converted into either private or public company?
A. In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
Q. A person can be a member in how many OPCs?
A. A person can be member in only one OPC.
Q. I already have my dsc and din will package remain same?
A. In this case, Please contact us we will provide you the concession accordingly.
Q. Do I need to have commercial space to start a company?
A. No, commercial office space is not required. one can also show their own residential or rented home address as the registered office address of the Company which can be changed at any time after incorporation of the company.
Q. What is MOA and AOA of the Company?
A. MOA is Memorandum of Association and AOA is Articles of Association. MOA is the chartered document of the Company which contains the important details about the company like what is the object of company, where is it situated etc., where as AOA is the document containing the bye-laws to govern the business of the Company.
Q. Do share capital needs to be deposited at the time of incorporation?
A. After the registration of the Company, Bank account of the company needs to be opened and within 2 months, capital amount needs to be deposited into it.
Q. Who is eligible to act as a member of an OPC?
A. Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
Q. What if a member of an OPC becomes a member in another OPC by virtue of being a nominee in that other OPC?
A. Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days.