OPC Registration in Chennai
Definition of One Person Company Registration in Chennai
If you want to start an OPC registration in Chennai or a new business or if you are about to change your Proprietorship firm to a company, here are the best options for you, which is nothing more than a One Person Company.
Here we are about to discuss many important details about OPC company registration and its process.
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What is one person company or OPC registration?
One Person Company which is shortly called as OPC, is the most recent child of the Incorporation Family, which was introduced by the Companies Act, 2013. This is the first time in India that it allows a single member to incorporate a company through ROC.
Prior to this, a single member can only form a Proprietorship Firm. Now, after this Law is enacted, the owner can set up an OPC where he does not need another person as Co-shareholder; where, typically, in a private limited company, he will get his wife or mother as a partner by allocating a 0.01% share.
Some Facts about OPC Registration in Chennai
Only One Member
No Minimum capital
OPC is appropriate for small businesses where the annual income is not more than two Crore.
The main constraint of OPC form of company is that only an Indian Citizen can incorporate an OPC Company and Foreign Direct Investment is not allowed in OPC.
Further you cannot incorporate more than one OPC or nominate as director for more than one OPC.
OPC Company Registration in Chennai and its Taxation
There is no difference between a Private limited and OPC as realting to Taxation. The tax rate is flat 30% as applicable for any Company incorporated under Indian Companies Act.
Voluntary Conversion of One Person Company Registration to Private Limited
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Once the OPC is incorporated, you cannot voluntarily convert an OPC to Private Limited or Public limited within a period of two years.
On completion of two years, an OPC can be converted to Public Limited or Private Limited on requisition by the BOD.
But if the turnover of the OPC exceeds 50 Lakhs, immediately preceding three financial years exceeds two crore, then the OPC has to be mandatorily convert to Private limited or Public limited Company.
Reason behind introduction of OPC company name registration
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Before introducing OPC, only two person minimum can form a Company
So the promoter stared inducting his wife or mother to form a company which is just for name sake.
A proprietor who is a simple person is unable to form his own Company
As Pvt Ltd needs minimum 2 directors, nominee directors are stared been appointed, so to avoid these fraudulent activity, the process of incorporation has been totally amended.
Hence for the above reason the amendment is the companies act is brought for incorporating a company with one director
Procedure for incorporating OPC registration in chennai
Mandatory Compliances for OPC
One Board of Directors meeting at least once in six months
Maintain a proper book of accounts
Statutory audit of financial statement
Filing of income tax for company
OPC is suitable for whom?
One Person Company registration in Chennai is more suitable for small entities or small businesses whose annual revenue does not exceed two Crore rupees.
The main restriction of the OPC company is that only an Indian citizen can incorporate an OPC company and foreign direct investment is not allowed in OPC. Also, if you are a shareholder of one OPC, you may not incorporate another OPC.
What is the reason for introducing One Person Company Registration in India?
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Before introducing a one person company registration in india, only two people at least can form a Private Limited Company
So the promoter started inviting his wife or mother to form a company which is just for the sake of the name.
An owner who is a single person cannot form his own Limited Company
As Pvt Ltd needs a minimum of 2 directors, nominee directors must be appointed, so to avoid these difficulties the requirement of two shareholders and two directors has been changed.
Therefore, the above amendment in the company law paves the way for registering a company with only one director.
Minimum Requirements to form an OPC Company Name Registration in Chennai
- One Shareholder:
The minimum and maximum number of members in an One Person Company is one.
There cannot be more than one shareholder in an OPC.
- Minimum one Director:
To incorporate a One Person Company, it requires a minimum of one director and a maximum of 15 directors.
An shareholder cum director of a proposed OPC, must propose a person as his nominee.
The nominee would step into the shoes of the promoter and take up the management charges.
- Name of the proposed company:
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Every business entity should have a unique business name, in the same way even an OPC should have a unique Trade name.
And the name should be approved by the Registrar of Companies.
- Office address in India:
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Event One Person Company should have a registered office.
The office premises may be a rental premises, leased property, shared space or even virtual office.
As a proof of office address, rental agreement to be produced.
- Capital of the company:
Every business must have some money for its operational expenses.
To register an OPC, the authorized capital must be a minimum of 1 lakh, but there is no minimum requirement of Paid-up capital.
What are the documents Required for OPC Registration in India
For Shareholder and Director
ID proof of the Directors and shareholders : PAN card
Address proofs Directors and shareholders : Aadhar card
Residence proofs: Bank statement or Gas bill or phone bill
For the nominee
ID proof of the Nominee: PAN card
Address proofs Nominee: Aadhar card
Residence proofs of the Nominee: Bank statement or Gas bill or phone bill
For the Business Address Proof
Rental agreement for the office premises
A copy of the Property Tax receipt or Electricity Bill
Who cannot be a Shareholder of an One Person Company
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A foreign national cannot be a part of One Person Company.
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Even an Non Residencial Indian who stays outside India cannot be a member or shareholder of a OnePerson Company
Already a Member of OPC:
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A person who is already a member of OPC cannot be a member of another OPC.
Only a natural person can be a part of One Person Company, so any other corporate or artificial entities cannot be a shareholder of an OPC
OPC Registration Process
Now you would have understood more about OPC and its benefits, in this part, we will see the procedure for registering the company.
Step 1: Name Approval
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The main step towards registering a one-person company is getting name approval from the Registrar of Companies, shortly called the ROC.
The Government has launched a web service called RUN, which stands for Reserve Unique Name, through which we can easily get approval of the proposed company name.
A Digital Signature Certificate is not even required to submit the RUN Application.
Step 2: Obtain Digital Signature Certificate
The OPC registration process requires the submission of many forms online, we need to obtain DSC from an authorized dealer.
The Class 3 Digital Signature is appropriate for submitting the forms through the Portal of the Ministry of Corporate Affairs (MCA Portal).
So the second step towards OPC registration is to get DSC.
Step 3: Apply for Director Identification Number
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Director Identification Number short called DIN, which is a unique 8-digit identification number assigned to each director of a company.
It must be obtained through the SPICe form for the first directors proposed in respect of new companies.
Step 4: Submission of Documents
MOA stands for Memorandum of Association, which is a document that outlines the goals of the company. In other words, the document that establishes the purpose of the business that the shareholders want to do.
AOA stands for Articles of Association which says about the by-lay of the company and the operations of the OPC is controlled by the by-law.
The proof of shareholder and director to be submitted.Furthermore, the proof of the Nominee and along with that, form INC-3 which is a consent form to be submitted for appointment of an Nominee to be submitted along with the PAN and Aadhar card
Step 5: Issuance of Certification
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After the presentation of all the documents before the MCA Portal, the Registrar of Companies will verify the same and, if all the details are correct, will issue the Certificate of Incorporation with a unique CIN Number.
Along with this, the PAN Card would even be delivered in the registered OPC company name.
Step 6: Obtain the statutory Licenses
Once the Company is incorporated, you need to obtain the mandatory licenses such as GST, Corporation License, product based licenses in order to run your business.