- How to Legally Register a One Person Company
- While starting your own business, the very first question that comes to mind is that how to form the company. This post presents a step-wise procedure to legally register a one-person company. As per the Companies Act 2013, section 2(62), a One Person Company means a company that has only one member.
- Any person who is residing in India and holds Indian citizenship is eligible to form a one-person company. This type of company is a legal entity which is separate from the members. The liability of a member is very limited. The best advantage of the OPC is that you can start up your own business without the help of any other member.
- Requirements to Form a One-Person-Company
- Here are prominent requires before you start the process of forming this kind of company.
- · One director (minimum)
- · One member (minimum)
- · The amount of minimum share capital
is Rs. 1 lakh.
- · Application for the allotment of
Direction Identification Number should be made.
- · You need to have a Digital Signature
Certificate
- Step-By-Step Guide to Form a One Person Company (OPC)
- The complete procedure to form a company with OPC status requires you to fulfil following steps.
- 1.
Apply
for DIN (Director Identification Number) in the DIR – 3 form.
- 2.
Apply
for DSC – Digital Signature Certificate.
- 3.
Search
for a name for your company. Check the availability of the name by visiting the
official website of the Ministry of Corporate Affairs. You need to submit
minimum 6 names in order of your preference while submitting the application
for company registration.
- 4.
Apply
for the reservation of name with the Registrar of Companies using the form
INC-1. The name will end with the words “private limited.” This application is
basically for the reservation of the name of your company.
- 5.
Draft
a MOA and AOA (Memorandum of Association and Articles).
- 6.
File
the required e-forms with the Registrar of the Companies. Form INC-2 and form.
- 7.
Pay
the ROC fees and stamp duty digitally according to the authorised capital of
the company. You can pay the fees online on m-ca.gov.in
- 8.
After
payment of all the required ROC fees and stamp duties, your documents and forms
will be scrutinized by the Registrar of the Companies. If ROC suggests you to
make any changes, make the necessary changes and submit the documents.
- After ROC approves your application, you should receive a digitally signed certificate of incorporation in the name of your company. After your company is formed legally, you should carry out certain necessary procedures. The prominent ones are applying for PAN and TAN as applicable. Also, apply for necessary registrations related to tax. Open a current bank account with any reputed bank. Also, file form INC-21 within 180 days from the date of incorporation of your one-person company. The form INC-21 is a certificate of commencement of business and should be filed with ROC.
- The above steps will give an idea of how you should legally register a one-person company. Also, note that any person can incorporate only a single one-person company. This means you cannot establish more than one person Company.
