To understand the benefits of registration of one person company (OPC), first of all, let’s understand what is one person company.
A one-person company is a company formed when a single person wants to start a company and wants to serve as both, the chief executive and the shareholder of that particular business. This concept of one person company was not available before 2013 and was incorporated by the provisions of the Companies Act of 2013 for the first time in the history of India. A one-person company is a type of sole proprietorship company giving a single person the ultimate authority of the company but limiting his or her liabilities. Under section 2(62) of the Companies Act of 2013, a single person can be the director as well as the member of OPC, making him the ultimate authority of the company.
The benefits to register one person company are as follows :
•All the benefits of a small-scale industry
If a company is registered as one person company (OPC), then that company is eligible to get all the perks of a small-scale industry. Some of those benefits include easy funding from banks, lower interest rates on loans, etc., and one person companies(OPC) can also have various benefits under foreign trade policy and other related policies.
•Single ownership
As it is cleared by the name itself, in an OPC there is a single owner which is very beneficial when it comes to taking quick decisions.
•Sense of belonging
A person who starts his company as OPC has a sense of belonging to his company and is motivated to grow the business with all of his or her might.
•Name and branding
If a company is registered under OPC norms, it gets a unique name which further has the potential to become a leading brand in its field.
•Getting a legal status
Companies registered under one person company get a separate legal entity status and it is capable of doing anything an entrepreneur can do.
•Limited formalities
One person company registration is less complicated as compared to a private company limited. It requires one shareholder, one director (the director and shareholder can be the same person) and one nominee.
Steps of online registration of one person company
Step 1: The first one needs to apply for a digital signature certificate for which the owner requires –
Valid address proof
Valid adhaar card
Valid pan card
Passport size photograph
Valid email ID
Telephone number
Step 2: After the completion of step one and issuing of a digital signature certificate one needs to apply for DIN (director identification number)
Step 3: Choose and get approved your number. Here, one needs to choose a unique company name which will be approved by the MCA (Ministry of corporate affairs).
Step 4: After the name is approved by MCA, these documents are required to be submitted to ROC (Registrar of companies), namely –
•Memorandum of Association (MoA)
•Articles of Association
•Proof of the company’s registered office along with the NOC
•Consent and declaration signed by the director
•Step 5: Fill out the forms with MCA. The above-mentioned documents will be attached along with SPICE forms (SPICE is simplified per forma for incorporation company electronically), SPICE MoA along with SPICE AoA and other forms like DSC and DIA number. These all are uploaded to the MCA site to be approved. After being approved, the company’s pan number and TAN are automatically generated.
•Step 6 Getting Certificate of Incorporation. After all the steps, the registrar of companies ROC will then issue a Certificate of Incorporation. After this, one can start his or her business.
one person company registration online, is a very easy and effective process for a person who wants to start a company or startup. It is under the policy of Case of doing Business in India by the Ministry of Corporate Affairs. By following the above-mentioned steps and being hopeful, one can start the new journey of entrepreneurship filled with a lot of progress and success.
