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What is the procedure of starting a one person company in India?

rajat sharma
What is the procedure of starting a one person company in India?

In the one person company registration of 2013, a new concept known as the one person company was introduced (OPC). A private business needs a minimum of two directors and two members, but a public company needs a minimum of three directors and seven members. Previously, a one person company registration could not form a corporation. 

An OPC registration online corporation is a business formed by a single individual. A one person company registration could not form a business prior to the implementation of the companies Act of 2013. If a person wished to start a business, he or she could only do so as a sole proprietorship because forming a company required a minimum of two directors and two members. 

According to the company act of 2013, an individual can start a business with just OPC registration online and one director. The same person could serve as both the director and a member. As a result, a one person company means that a single individual, whether a resident or an NRI, can form a business that combines the qualities of corporation with the advantages of sole proprietorship.

OPC Registration Process:

Getting the proposed director's digital signature certificate is the first step. Required documents are Address proof, adhaar card, PAN card, Photo, Email Id, phone number. 

Apply for DIN

Following the creation of the digital signature certificate (DSC), the next step is to apply for the proposed director’s Directors Identification number (DIN) in SPICe. Form, as well as proof of the director's name and address. Only existing enterprises may use FormDIR-3 on an individual basis. In the SPICe form, DIN can now be applied to a maximum of three directors.

Application for Name Approval: 

The next step in creating an OPC is deciding on a name for the company. The OPC registration process name will be “ABC (OPC) Private limited.” In the Form SPICe+32 application, the name can be authorized. In the Form SPICe+32 application, you can only list one preferred name and explain why it's important to keep it. If the name is denied, a new one can be submitted via a new Form SPICe+ 32 application. 

Submitting Forms to the MCA:

All of the documents, together with the Director’s and professional’s DSC’s, will be added to the SPICe form, SPICe-MOA and SPICe-AOA, and posted to the MCA site for approval. The TAN and PAN are created automatically at the time of the company's incorporation. For obtaining a PAN and a TAN, separate applications are not required.

The certificate of Incorporation is issued. 

The OPC registration process of companies (ROC) will issue a certificate of Incorporation after verification, and we will be able to start our firm. 

Document Required: 

We must compile the following documents. To the ROC, which must be presented:

The MOA outlines the company’s goal and objectives, as well as the business for which it will be incorporated. 

The AOA established the company's operating procedures.

There is only one Director and one member, a nominee must be appointed on behalf of such a person in case he becomes handicapped or dies and is unable to perform his obligations, the nominee will perform on behalf of the directors and take his place. His agreement in Form INC - 3 as well as his PAN card and Aadhaar card would be required. 

Proof of the proposed company’s registered office, as well as proof of ownership and a letter of authorisation from the owner. 

Form INC-9 and DIR-2 are used to declare and consent to the prospective director. 

A statement signed by the professional attesting to the fact that all requirements have been met. 

rajat sharma
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