A One Person Company (OPC) is a type of business structure that allows a single individual to incorporate a private limited company. It offers the benefits of limited liability protection, easy compliance, and professional reputation, similar to a traditional private limited company. In this article, we will explain the process to register One Person Company in India.
Eligibility Criteria:
To register a One Person Company in India, the following eligibility criteria must be met:
- The individual must be an Indian citizen and resident.
- The individual must be at least 18 years old.
- The individual must not be a director in any other OPC.
- The individual must not be a member of any other company.
Documents Required:
The following documents are required to register a One Person Company in India:
- PAN card of the individual
- Identity proof (such as a passport or aadhaar card) of the individual
- Address proof (such as a utility bill or rental agreement) of the individual
- A recent passport-sized photograph of the individual
- Declaration of solvency (a statement that the individual is capable of paying off all debts)
Procedure:
The process of registering a One Person Company in India can be divided into the following steps:
Step 1: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN):
The first step in the process is to obtain a DSC and DIN for the individual. A DSC is an electronic certification that is used to sign documents electronically. A DIN is a unique identification number assigned to a director of a company.
Step 2: Apply for Name Approval:
The next step is to apply for name approval from the Ministry of Corporate Affairs (MCA). The individual can check the availability of the desired name on the MCA website and then apply for name approval using the online form.
Step 3: Incorporate the One Person Company:
Once the name is approved, the individual can proceed with the incorporation of the OPC. This can be done by filing the necessary documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), with the MCA.
Step 4: Obtain PAN and TAN:
After the OPC is incorporated, the individual needs to obtain a PAN (Permanent Account Number) and a TAN (Tax Deduction and Collection Account Number) for the company. These can be applied for online through the Income Tax Department’s website.
Step 5: Obtain License and Permissions:
Depending on the nature of the business, the individual may need to obtain various licenses and permissions, such as a trade license, pollution control clearance, and fire safety clearance.
Conclusion:
In summary, registering a One Person Company in India involves obtaining a DSC and DIN, applying for name approval, incorporating the OPC, obtaining a PAN and TAN, and obtaining necessary licenses and permissions. By following these steps, an individual can easily set up a One Person Company and start their business operations.