In the recent past there is no registration for an individual who want to run a business as separate Legal Entity, due to this it is difficult for him to open Bank account and many other thing which is necessary to run a business, and it would be very difficult for other person for relying such type of Proprietor Business but after the enactment of companies act 2013 there is a provision of Individual Registration as Separate Legal Entity Just like Partnership Firm, Companies etc.This makes easy for relying such Individual Business or Proprietor Business.
Now this blog tells you about some more facts about the One Person Company Registration.
Meaning of One Person Company
As per definition provided under section 2(62) of the Companies Act, 2013, One Person Company(OPC) means a company which has only one person as a member.
OPC shall be having status of a private limited company
Section 3(1)(c) provides that where the company to be formed is to be OPC it shall be considered as a private company,
Only a natural person, Indian citizen and resident in India can incorporate OPC
Rule 3(1) of the Companies (Incorporation) Rules, 2014 provides that only a natural person who is an Indian citizen and resident in India(resident in India means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year):—
(a) shall be eligible to incorporate a OPC;
(b) shall be a nominee for the sole member of a OPC.
A person cannot have more than one OPC or become nominee
No person shall be eligible to incorporate more than one OPC or become member in more than one OPC.
Name of the OPC must include the last word as Private Limited
Section 4(1) of the Companies Act, 2013 provides that the memorandum of a company shall state the name of the company with the last words “Private Limited” in the case of a private limited company,except a company registered under section 8 of the Act. For ex: ABC Consultants OPC Private limited”
OPC needs to have minimum share capital of `1 Lakh
Restrictions on OPC
The Companies (Incorporation) Rules, 2014 put certain restrictions on the OPC as under:
(1) No minor shall become member or nominee of the OPC or can hold share with beneficial interest.
(2) OPC cannot be incorporated or converted into a company under section 8 of the Act.
(3) OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.
(4) OPC can convert voluntarily into any kind of company unless two years have expired from the date of incorporation of OPC, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees.
Brief Procedure for OPC Registration:
Steps wise Process For Registration:
- Director Identification Number
i) Digital Signature
ii) Annexure 1
iii) Form DIN-3
- Name Approval
i) Form INC-1
i) Form INC-2
- DIR-12 filed with INC-2 except when promoter is the sole director of the OPC. In other words, if there is two or more than to director in OPC then Form DIR-12 is filled with INC-2.
- INC-22 with 30 days after Registration of INC-22 in case when registered office address is not same.