12 Oct
One Person Company Meaning incorporation annual filing and restrictions etc
One Person Company - Meaning, incorporation, annual filing and
restrictions etc.
The concept of One Person Company (OPC) was
introduced to encourage unorganized proprietary businesses to enter the
organized corporate world. An individual company as the name suggests is a
company in which one person is a member. Like any other business entity, the
One Person Company is a separate entity from its members, the shareholders have
limited liability protection and have a lasting succession. A-One Person
company is the right choice for an owner or a new entrepreneur who wants to
start a company individually without adding any other members. Since there is
no public interest involved in a one-person company, such companies have been
given a lot of leeway in terms of compliance.
Interpretation under the Act
According to Section 2 (62) of the Companies
Act, 2013, "one person company" means a company in which only one
person is a member.
Nature of OPC
OPC will be referred to as a private company as
per the provisions of Section 3 (1) (c) of the Companies Act, 2013.
Members and Directors in OPC
There will be only one member and one director
is enough. An independent member can also be a director. Eligibility Only a
natural person who is an Indian citizen and resides in India or otherwise would
be eligible for OPC inclusion; Nominated for the sole member of the OPC, the
term resident here means a person who has resided in India for more than 120
days in the previous financial year.
Eligibility
Only a natural person who is an Indian citizen
and lives in India or otherwise
will be eligible to include OPC;
will be nominated for the sole member of the
OPC
The term resident here means a person who has
stayed in India for more than 120 days in the previous financial year.
Nomination
The subscriber of the OPC’s Memorandum will
nominate a person after obtaining his prior written consent in Form inc-3, who
will become a member of the OPC in the event of the customer’s death or
inability to enter into an agreement.
The name of the nominee shall be mentioned in
the memorandum of the OPC and should be submitted to the Registrar at the time
of the Corporation.
Documents required for OPC Corporation
Proposed member and director's PAN card
Driving license or Aadhar card or voter ID card
or passport or bank passbook (as proof of identity)
• Latest electricity bill or telephone bill or
mobile bill or bank statement (as proof of residence)
• Latest utility bill or lease agreement (as
proof of registered office address)
A No Objection Certificate (NOC) in case of
rental space.
Proof of identity of the official signatory for
the bank account opened.
Proof of address of the official signatory for
the bank account opened.
Passport size photo of the official signatory.
Procedure for OPC Corporation
Applications for OPC registration can be made
through a single application such as reservation, allotment of DIN, the
inclusion of new company, allotment of PAN and TAN.
This single application can be made in SPICe +
(with or without RUN) SPICe + form (INC-32) with other linked forms like e-MOA
(INC-33), e-AOA (INC-34), AGILE-PRO. And INC-9
Restrictions on OPC
1. No minor shall be a member or nominee of OPC
or take part with beneficial interest.
2. OPC cannot be converted into a Section
8 company.
3. OPC cannot engage in non-banking financial
investment undertakings with investments in securities of any corporate.
Annual compliance of OPC
1. Board meetings
2. Disclosure of Director's Interest
3. Annual General Meeting (AGM)
4. Appointment of Statutory Auditor
5. Filing of financial statements
6. Filing annual returns
7. Filing Directors KYC
8. Filing MSME-I return
9. Filing of Return of Deposits- DPT-3
The author can also be reached at
santoshpatil@alltaxfin.com
Disclaimer: Please note that the above article
is based on an explanation of the relevant laws, which may vary from person to
person and is not legal advice.
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