One Person Company (OPC) Incorporation – An Overview:
The structure of the one person company (OPC) in recent times was launched as a refinement of the structure of a sole proprietorship firm. In an OPC, a single promoter gains full authority over the company thereby, restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of carrying on). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC has an average turnover of ₹2 crores thrice in a row and over or acquires a paid-up fund of ₹50 lakh and over, it has to be converted to a private limited company or public limited company within six months.
Documents Required for OPC Incorporation
- PAN card or passport
- Passport, for NRIs and foreign nationals
- Scanned transcript of driver’s license or voter’s ID
- Updated gas or electricity invoice/bank account statement/mobile or landline phone invoice
- Specimen signature or impression
- Passport-size photo.
Please Note: The OPC director must self-attest to the first three documents. All paperwork for a foreign citizen or NRI must be notarized (if they are currently residing in India or a non-commonwealth country) or apostilled (if living in a commonwealth country at present).
Documents Necessary for the Registered Office
- Scanned transcript of current bank account statement/phone or mobile invoice/gas or electricity invoice
- Scanned transcript of rental agreement written in the English language
- Scanned transcript of a no-objection certificate from the concerned property landowner
- Scanned transcript of property or sale deed printed in English (if the property is owned).
Note: Your registered office space needs to be a commercial premises; however, it can be the sole director’s place of residence as well.
Process for One Person Company Incorporation
- Step 1: Check eligibility and documents
- Step 2: Apply for DSC & DIN of all the directors
- Step 3: Application for name reservation
- Step 4: File Spice+ form for company incorporation
- Step 5: Apply PAN and TAN for your new company
- Step 6: RoC issues a certificate of incorporation with a PAN and TAN
- Step 7: Open bank account and start operation.
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