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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.
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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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.
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.
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.
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:
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:
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
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