One-Person Company Registration

What is One Person Company?

Section 2(62) of the Companies Act defines a one-person company as a company with only one person as its member. Business Buddy Solutions are the prime service provider of the best solution of registration of One-Person Company in Lucknow.  Furthermore, members of a company are nothing but subscribers to its memorandum of association or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.

Such companies are generally created when there is only one founder/promoter for the business. Entrepreneurs whose businesses lie in the early stages prefer to make OPCs instead of sole proprietorship businesses because of the several advantages that OPCs offer.

One-Person Company Registration

A new concept has been introduced in the Company’s Act 2013 about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and 2 Members are required, whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members.One-person company registration in Lucknow is being provided to you by Business Buddy Solutions. We resolve and adjust to the advantages and disadvantages to give you the best solutions. 

 A single person could not incorporate a Company previously. One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act of 2013, a single person could not establish a company. If an individual wanted to show his business, they could opt only for a sole proprietorship, as there had to be a minimum of two directors and two members to establish a company.

As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and one member. It is a form of a company where the compliance requirements are lesser than that of a private company.

The Companies Act 2013 provides that an individual can form a company with one single member and one director. The director and member can be the same person. Thus, one person company means one individual who may be a resident or NRI can incorporate their business that has the features of a company and the benefits of a sole proprietorship.

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Advantages of OPC

Legal status 

The OPC receives a separate legal entity status from the member. The separate legal entity of the OPC gives protection to the single individual who has incorporated it. The member’s liability is limited to their shares, and they are not personally liable for the loss of the Company. Thus, the creditors can sue the OPC, not the member or director.

Easy to obtain funds 

Since OPC is a private company, it is easy to go for fundraising through venture capital, angel investors, incubators, etc. Banks and Financial Institutions prefer to grant loans to a company rather than a proprietorship firm. Thus, it becomes easy to obtain funds.

Less compliance 

The Companies Act 2013 provides certain exemptions to the OPC concerning compliances. The OPC need not prepare the cash flow statement. The company secretary need not sign the books of accounts and annual returns and be signed only by the director. 

Easy incorporation 

 It is easy to incorporate OPC as only one member and one nominee is required for its incorporation. The member can be the director also. The minimum authorized capital for incorporating OPC is Rs.1 lakh, but no minimum paid-up capital requirement exists. Thus, it is easy to include compared to the other forms of CompanyCompany.

Easy to manage 

Since a single person can establish and run the OPC, it becomes easy to manage its affairs. It is easy to make decisions, and the decision-making process is quick. The ordinary and extraordinary resolutions can be passed by the member quickly by entering them into the minute book and signed by the sole member. Thus, running and managing the CompanyCompany is easy as there won’t be any conflict or delay within the Company.

Perpetual succession 

The OPC has the feature of perpetual succession even when there is only one member. While incorporating the OPC, the single member needs to appoint a nominee. Upon the member’s death, the nominee will run the CompanyCompany in the member’s place. 

One-Person Company (OPC) Registration Process

Business Buddy Solutions help in the registration process of your One- Person Company Registration in Lucknow. We support and guide you through the entire process.

Step 1: Apply for DSC

The first step is to obtain the Digital Signature Certificate (DSC) of the proposed Director, which requires the following documents:

• Address proof
• Aadhaar card
• PAN card
• Photo
• Email Id
• Phone number

Step 2: Apply for DIN

Once the Digital Signature Certificate (DSC) is made, the next step is to apply for the Director Identification Number (DIN) of the proposed Director in the SPICe Form, along with the name and address proof of the director. Form DIR-3 is the option only available for existing companies. It means with effect from January 2018; the applicant need not file Form DIR-3 separately. DIN can be applied within the SPICe form for up to three directors.

Step 3: Name Approval Application

The next step while incorporating an OPC is to decide on the name of the Company. The name of the Company Company will be in the form of “ABC (OPC) Private Limited.”

The name can be approved in the Form SPICe+ 32 application. Only one preferred name, along with the significance of keeping that name, can be given in the Form SPICe+ 32 application. If the character gets rejected, another name can be submitted by applying another Form SPICe+ 32 application.

Once the name is approved by the MCA, we move on to the next step.  

Step 4: Documents Required

We have to prepare the following documents, which are required to be submitted to the ROC:

• The Memorandum of Association (MoA) which are the objects to be followed by the CompanyCompany or stating the business for which the CompanyCompany is going to be incorporated.
• The Articles of the Association (AoA) lays down the by-laws on which the CompanyCompany will operate.
• Since there are only 1 Director and a member, a nominee on behalf of such a person has to be appointed because in case he becomes incapacitated or dies and cannot perform his duties, the nominee will perform on behalf of the director and take his place. His consent in Form INC – 3 will be taken along with his PAN card and Aadhar Card.
• Proof of the registered office of the proposed Company, along with the proof of ownership and a NOC from the owner.
• Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2, respectively.
• A declaration by the professional certifying that all compliances have been made.

Step 5: Filing of Forms With MCA

All these documents will be attached to the SPICe Form, SPICe-MOA, and SPICe-AOA, along with the DSC of the Director and the professional, and will be uploaded to the MCA site for approval. The Pan Number and TAN have been generated automatically at the time of incorporation of the Company. There is no need to file separate applications for obtaining PAN Number and TAN.

Step 6: Issue of the Certificate of Incorporation

On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation, and we can commence our business.

Checklist for Registering OPC through Business Buddy Solutions in Lucknow

• Minimum and maximum of one member. 
• A nominee should be appointed before incorporation.
• Consent of the nominee should be obtained in Form INC-3.
• The name of the OPC must be selected as per the provisions of the Companies (Incorporation Rules) 2014.
• Minimum authorized capital of Rs.1 lakh.
• DSC of the proposed director.
• Proof of registered office of the OPC.

Why Choose Business Buddy Solutions?

• We provide transparent pricing and affordable rates. 
• We dedicate our earnest work to your services and make sure to deliver world-class efforts. 
• We maintain the privacy of your information and respect your limits and boundaries. 
• We also make sure the legalities of your registration process remain constant and proceed without any difficulties.