ONE PERSON COMPANY – A NEW & UNIQUE CONCEPT IN INDIA
The New Companies Act, 2013 has introduced many new provisions and one such provision is the introduction of One Person Company (OPC) which is totally a new concept. This new concept will enable the Entrepreneur(s) carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework.
Companies Act, 2013
One Person Company is defined in sub section 62 of section 2 of the Companies Act, 2013.
Salient features of One Person Company
- Only one person as member/shareholder in OPC is allowed.
- The registration of OPC could only be done as Private Limited Company.
- The structure of OPC may be either as a company limited by share or company limited by guarantee or an unlimited company.
- The following are the requirements for an OPC limited by shares:
- Restricts the right to transfer its shares
- Prohibits any invitation to public to subscribe for the securities of the company
- Nominee member eligibility for incorporation of OPC
- As per Rule 3(1) of the Companies (Incorporation) Rules 2014, only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate/form a OPC. Indian resident means who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
- Minimum and maximum number of member: One
- Minimum Director: One
- Nominee: Every one person company is required to indicate the name of other person as nominee to the sole member in the memorandum and nominee for the subscriber should be an individual who is an Indian citizen and resident of India.
Steps & Documents involved in the incorporation of OPC
- INC 1: Application for reservation of name
- INC 2: Incorporation document
- INC 3: Consent of Nominee
- INC 9: Affidavit from the subscriber & the first director
- INC: 10 Specimen Signature
- INC 22: Registered office
- Consent from Director
- Proof of registered office address
The following are the requirement of documents from the Member, Director & Nominee
- DIN Number of the proposed Director/Member
- Proof of Identity: Voter Id, Passport, Driving License, Aadhar
- Proof of Residence: Bank Statement, Electricity, Telephone Bill, Mobile Bill