One Person Company Name Registration Process in India - Complete Overview

by Aanshika Singh Marketing & Bussiness Services

The Company Act of 2013 introduced a new phenomenon known as the One Person Company. (OPC). A private organization must have two directors and two members, whereas a publicly-traded New company registration must have three directors and seven members. Previously, a sole individual could not form a corporation.

A one-person corporation (OPC) is a business founded by a single individual. Before the Companies Act of 2013, it was impossible for an individual to start a business. Because forming a corporation needed a minimum of two members and two directors, an individual could only start a business or register a company as a single proprietorship.

A corporation can be established with just one director and one member, as per Section 2(62) of the Company's Act 2013. It's a sort of organization that is subject to fewer regulations than a privately owned company.

The Procedure

Step 1: The primary step is to get the suggested Director's Digital Signature Certificate (DSC), which requires the required documentation:

● Photo

● Phone Number

● Email ID

● Address Proof

● PAN Card

● Aadhar Card

Step 2: Make a request for a DIN number

Following the development of the Digital Signature Certificate (DSC), the succeeding step is to submit an application in SPICe Form for the proposed Director's Director Identification Number (DIN), as well as proof of the director's name and address to register a company.

Form DIR-3 is only available to established businesses. It means that starting in January 2018, claimants will no longer be obliged to file Form DIR-3 on their own. In the SPICe form, DIN can now be applied to up to 3 directors.

Step 3: Approval for Name

The following step in founding an OPC is to give a name for private limited company registration in Delhi.

The organization’s name can be authorized in the Application SPICe+ 32 application. For company name registration you can only list one ideal name and explain why it's necessary to keep it in the Procedure SPICe+ 32 application. If your name is rejected, you can submit a new one using a new SPICe+ 32 application.

As soon as the MCA has approved the name, we'll go on to a step forward.

Step 4: Documentation

The next step in founding an OPC is to give the company a name.

● The name can be authorized in the Application SPICe+ 32 application.

● You could only specify one desired company name registration and describe why it's necessary to keep it in the Form SPICe+ 32 application.

● If your name is rejected, you can submit a new one using a new Form SPICe+ 32 application.

● Because there is only one Director and one person, a nominee must be selected on their behalf, because if the director becomes incompetent or deceases and is unable to execute his duty, the applicant will act in his position. His permission in Form INC – 3 would be reserved along with his Aadhar card and PAN card.

● Evidence of the listed office of the prospective New company registration, as well as ownership proof and a letter of consent from the proprietor

● The proposed Director's Declaration and Agreement forms INC -9 and DIR – 2.

● A professional declaration attesting to the fact that all standards were met.

Step 5: Forms that must be submitted to the MCA

All of these credentials will be appended to the SPICe Form, SPICe-MOA, and SPICe-AOA, together with the Director's and professional's DSCs, and posted to the MCA website for validation. The TAN and Pan Number are produced routinely at the period of the company's incorporation. Distinct applications for gaining a PAN and a TAN are not required.

Step 6: The Certificate of Incorporation is given to the company.

The Registrar of Companies (ROC) will approve the application and, after validation, sanctions a Certificate of Incorporation, allowing us to begin our business.

The Benefits

● Justifications under the law

The member establishes the OPC as a separate legal body. The OPC is a separate legal body that safeguards the person who founded it. The member's liability is limited to the value of his or her shares, and he or she is not liable for the company's losses directly. As a result, creditors have the ability to sue the OPC rather than the director or member.

● It is simple to obtain funds.

Because OPC is a private organization, it is simple to raise funds from venture capitalists, angel investors, incubators, and other sources. Financial firms prefer to lend to corporations rather than sole proprietorships. As a result, obtaining finances becomes simple.

● The level of compliance has dropped.

The OPC is exempt from some compliance obligations under the Companies Act of 2013. The OPC is not required to prepare the cash flow statement. The company secretary is not required to keep track of the books of accounts or yearly returns, which just require the director's signature.

● The method is straightforward.

OPC can be formed quickly because only one registrant and one nominee are required. A director could also be a member. Despite the fact that no minimum paid-up capital is required, an OPC should have a capital requirement of Rs.1 lakh in order to be created. As a result, getting started is simpler than for other sorts of enterprises.

● Simple to use

It is simple to administer the OPC's affairs because it can be established and maintained by a single person. Deciding things is easy, and the decision-making procedure is rapid. Conventional and special proposals can be readily passed by the member by putting them into the minute book and having the solitary member sign them. As a result, managing and monitoring the company is simply because there will be no internal disagreement or delays.

Conclusion

After the enforcement of the Companies Act, it has not been a tough task to get private limited company registration in Delhi. This has now become easy to apply for the registration and then step by step follow the procedure. With the help of Thestartuplab people can now simply get access to the assistance for getting their companies registered without wasting time or failing to complete the process.