Introduction

One Person Companies (OPCs) is an innovative idea that was codified by the Companies Act of 2013. An OPC is a corporation founded by a single person, as the name implies. Perpetual succession, limited liability, and independent legal status are just a few of the attributes that define an Organisation Preference Company (OPC). 

One individual could not form a business prior to the Companies Act of 2013 coming into force. A person wishing to start their own firm could only choose to do it as an independent owner since a corporation needed to be formed with at least two directors and two members and run their own firm by completing opc company registration.

A Private Company must have at least two Directors and two Members, whereas a Public Company needs at least three Directors and seven Members. It was formerly not possible for one individual to incorporate a company. The Company’s Act of 2013 allows a company to be founded with a single director and one member under Section 2(62). The director & member can be an identical individual. It is a kind of business where the criteria for compliance are lower compared to those of a private corporation. A one-person company, then, is a firm that may be incorporated by a single person, who may be a resident or an NRI, and which blends the advantages of a sole proprietorship with the characteristics of a company.

The Registration Process of One Person Company

The SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus) is a tool in India to register a one-person company (OPC). The former SPICe form and other forms needed to incorporate a business have been replaced with this complete form.

An OPC must complete the following two steps in order to register:

• Part A: This section of the SPICe+ form serves the purpose of applying for the intended director’s Permanent Account Number (PAN) or Director Identification Number (DIN) and getting permission for the planned company name.
• Part B: The second section of the form, or Part B, provides details relative to the organization. This is where you will provide data about the OPC, including its registered office location, share capital, director specifics, and shareholder information.

Documents Needed

The following paperwork has to be completed and filed to the Registrar of Companies (ROC):

• Memorandum of Association (MoA): This legal document states the goals or purpose for which the organisation is being formed.
• The Articles of Association (AoA): It defines the rules and regulations of the corporation.
• Nominee Selection: Because there is just one team member and director, a nominee has to be chosen to serve on the director’s behalf in the scenario of the director’s disability or death. The nominee’s permission has to be submitted using Form INC-3 along with their Aadhaar and PAN cards.
• Evidence of Registered Office: What needs to be provided are evidence of the registered office, evidence of ownership, and an owner’s No Objection Certificate (NOC).
• Statement and Consent: The prospective director must submit an assertion in Form INC-9 and a statement of their agreement in Form DIR-2. 
• Compliance Certificate: A certified statement attesting to the completion of all required compliances.

By using the Ministry of Corporate Affairs web, it is easy to submit the SPICe+ form digitally. Through the use of this expedited method, an OPC could be registered quickly and successfully.

The following steps can be undertaken to complete the online registration procedure for a One Person Company (OPC) using the MCA site in India:

• Submit a DSC application.

The first stage is obtaining the prospective director’s Digital Signature Certificate (DSC), which calls for the following paperwork:

• Address verification
• Aadhaar card
• Pan card
• Phone number 
• Email ID 
• Photo

• Request a DIN

The following step is to submit an application for the prospective director’s Director Identification Number (DIN) in the SPICe+ form and submit the director’s name & verification of address after the Digital Signature Certificate (DSC) has been generated. Only currently operating businesses have the option to use Form DIR-3. This implies that beginning in January 2018, applicants won’t have to submit Form DIR-3 individually. Currently, up to three directors can submit applications for DIN inside the SPICe+ form.

• Request for Name Approval

A company’s name must be chosen as the next stage in the incorporation process for an OPC. The company will be known by the name ABC (OPC) Private Limited.

The Form SPICe+ application allows for the approval of the name. In the Form SPICe+ application, only one preferred moniker could be provided, along with reasons for preserving it. You can apply for a new Form SPICe+ application and submit a different name if the first one is denied.

After the MCA approves the name, we proceed to the following stage.  

• Documents Needed

In order to submit the following paperwork to the ROC, we must first prepare the following:

• The articles of incorporation, or the Memorandum of Association (MoA), specify the goals that the firm will pursue.
• The company’s operating bylaws are outlined in the Articles of Association (AoA).
• Since there is only one director and one member, it is necessary to designate a nominee on their behalf. This is because, in the event that the director becomes incompetent or passes away and is unable to carry out his obligations, the nominee will act in the director’s place. His PAN card and Aadhar card would be collected along with his agreement in Form INC – 3.
• Evidence of ownership, an NOC from the owner, and the new company’s registered office.
• The proposed director’s declaration and consent are on Form INC-9 and DIR-2, respectively.
• A statement from the expert attesting to the fact that all compliances have been completed.

• Using MCA to File Forms

These files, collectively with the Director’s and the professional’s DSC, shall be posted to the MCA website for approval and accompanied by the SPICe+ Form, SPICe-MOA, and SPICe-AOA. At the moment of the company’s establishment, the Pan Number and TAN are produced automatically. TAN and PAN numbers may be obtained without submitting separate applications.

• A Certificate of Incorporation is Granted

Following verification, we will receive a Certificate of Incorporation from the Registrar of Companies (ROC) and be able to start our firm.

Conclusion

An opc in india is incorporated via a systematic procedure that guarantees both legal compliance and ease of use. Entrepreneurs can take advantage of the perks of a company structure with greater independence and less compliance costs by creating their One-Person Company easily by following these directions and completing the checklist. With the help of this comprehensive handbook, prospective company owners may confidently handle the OPC incorporation process. Welcome to the new world of OPCs, and set off on the path to success as an entrepreneur.