One Person Company Registration
One-person company registration permits one person to run as a company with the protection of limited liability. For registration of a single company, you’ll need to get an electronically signed certificate (DSC), make a reservation for a name, make your Memorandum of Association (MOA) and Articles of Association (AOA), and then submit them to the Ministry of Corporate Affairs (MCA).
The MOA and AOA establish the company’s goals as well as internal regulations. They need to be prepared and filed together with the MCA alongside various forms and documents that are mandatory.
Legal Name of the Company
One-person business registration is a unique type of business structure that allows one person to run the business as an independent entity that has a limited responsibility. It offers the advantages of sole proprietorship as well as a traditional business and is a good option for entrepreneurs.
The new type of business was established by the Companies Act in 2013. It permits the sole promoter to create an entity with just one director and one member. This is an excellent alternative for entrepreneurs on their own who wish to build the reputation and credibility of a registered company.
After the company has been formed, it will need to establish an office registered in the state in which it was registered. The company has to file a statement on Form INC-22 to ROC in the first 30 days of incorporating and include the address of the registered office. In addition, the ROC will also provide an organization with a tax identification number. This is known as the PAN and the TAN.
OPCs must prepare annual income tax returns regardless of whether they’re profitable or not. They are also required to choose one nominee to assume the business in the event of death or incapacity of the sole proprietor. A nominee has to be a natural person and must reside in India. The nominee must also agree to the Memorandum of Association along with the written consent required to join the OPC.
Memorandum of Association (MOA)
The MOA is a crucial document that determines the scope and limitations of an organization’s activities. It outlines the most essential details of a business and defines its relations with shareholders. It’s broken down into several clauses, each with a distinct reason. For instance, the name clause outlines the identity of the business. It must be distinctive and not overly similar to other companies. The name should be a final in “Limited” or “Private Limited,” according to the kind of business.
Another crucial element of MOA is the definition of the powers and duties of the company. The definition defines the extent of the company’s actions and guarantees that no action is carried out outside of these limits. If this occurs, the business could be deemed to be ultra vires and null.
The incorporation of an OPC is an excellent option for solopreneurs since it provides numerous tax benefits and advantages that other kinds of companies are unable to provide. However, it’s not the ideal structure for businesses looking to expand. The limitation on the number of shareholders and members could impede expansion for corporations. In addition, an OPC doesn’t have the capacity to raise additional cash; therefore, it can’t expand without raising the capital of its shareholders.
Additionally, a single business does not need to organize AGMs and conduct annual reviews of performance. But it has to maintain the minutes of every special and regular resolution. Furthermore, the company must prepare a tax return each year.
Articles of Association (AOA)
The AOA is an official document that sets out the regulations and rules of the business. It describes the purpose of the business, the main business activities, and goals. It also provides information on shares’ capital, the issuance or transfer of shares, shareholder rights, voting rules, board and general meetings, and other vital details. The AOA is able to be changed in any way, but changes should be based on a procedure that is laid out by the Companies Act.
The amendment is to be approved by a vote and then approved by all shareholders as well as directors. After the AOA is changed, the amended AOA must be submitted to the Registrar of Companies. The AOA must be accompanied by authenticated copies of the special resolution, a written notice of the meeting, and an exemplified version of the modified AOA.
One Person Company registration is the best option for solopreneurs looking to establish an organized business structure with limited liability and professional credibility. It’s simple to sign up and requires less time than a public or private limited company. It’s also a great option for entrepreneurs looking to obtain venture capital funds or other forms of financing.
Since it is a separate legal entity, an OPC restricts the liability of the owner to the amount of their shares, meaning they don’t have to personally be responsible for any losses the business suffers through its business. This makes OPCs appealing to investors and lenders and allows an individual owner to get funds through offering equity.
Registration Fees
One-person company registration is a well-known corporate structure that allows an individual entrepreneur to establish and run a company with limited liability protection. It’s a combination of sole proprietorship as well as the corporate form of business. It also has numerous advantages over other forms of business, like easy compliance. However, it is crucial to know the rules and the costs associated with beginning a company with just one person.
The first step is to obtain a Digital Signature Certificate (DSC) for every director in the business that is being created. This allows for digital authentication as well as the signature of papers and documents through online portals as well as submissions. After that, the name has to be verified against the rules for naming by the Ministry of Corporate Affairs (MCA) to ensure its uniqueness and that it doesn’t conflict with other names. If the name is accepted and the name is approved, then the MCA will issue a CIN for the company. TAN as well as PAN are also issued, which will allow the business to establish accounts with banks.
It is then the MOA and AOA are then drafted with the company’s mission and internal rules, as well as rules and regulations. They must be filed in the OPC registration process as well as other forms and documents such as proof of registered addresses, nomination appointments, and declarations. The last step is to file the SPICeplus request via the MCA website, along with all required documents, as well as the MCA receipts, and wait for approval from the ROC.
