OPC Formation in Chennai, About the One Person Company (OPC), and a new concept has been introduced in the Companies Act 2013. In a private company, at least 2 directors and 2 members are require while in a public company, at least 3 directors and at least 7 members are require.
Procedures for OPC formation in Bangalore:
Apply for DSC: starting step is to acquire the Digital Signature Certificate (DSC) of the proposed Director which requires the following documents:
Proof of address
Aadhar card
PAN card
Photo
Email ID
Phone number
Apply for DIN:
Once the Digital Signature Certificate (DSC) is done, the next step is to apply for the Director Identification Number (DIN) of the propose Director in the Spicy Form along with proof of Director’s name and address. Form DIR-3 is an option available only to existing companies. This means that from January 2018, the applicant does not need to file DRI-3 separately. Up to three directors can now apply for the DIN Spice form.
Name Approval Application:
OPC formation in Chennai is to decide on the name of the company. The name of the company will be “ABC (OPC) Pvt. Ltd.”
There are 2 options available to get name recognition by applying in Form Spicy32 or by choosing 1 name using MCA’s RUN web service and the importance of having that name. However, with effect from March 23, 2018, the Ministry has decided to allow two proposed names and one re-introduction (RFB) by reserving unique names (RUN service) for companies.
Once the name is sanction by the MCA we move on to the further procedures
Required Documents:
We have to prepare the following documents which are require to be submitted to ROC:
a. Memorandum of Association (MOA) which will be followed by the company or the business for which the company will be involved.
B. the Articles of Association (AOA) which will be controlled by the company lays down the by-laws.
C. As there is only 1 director and member, a nominee has to be appointed on behalf of such person as if he becomes incapacitated or dies and is unable to perform his duty, he will perform on behalf of the director and take his place. Their consent will be taken along with their PAN card and Aadhaar card in Form INC-3.
D. Proof of registered office fee of the proposed company along with proof of ownership and NOC from the owner.
E. Announcement and consent of the proposed Director of Form INC-9 and DIR – 2 References.
F. Announcement by professional certification that all have been comply with.
Filling the form with MCA:
All these documents will be attached with spice Form, Spice-MOA and Spice-AOA, along with the Director and DSC of the professional will be uploading on the MCA site for approval.
Page number and TN are generate automatically at the time of company inclusion. No separate application is require to obtain page number and TAN.
Issuance of Certificate of Investment:
Upon verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and we will be able to start our business.
Advantages of OPC in Chennai
1. Compliance burden
OPC registration in Chennai includes the meaning of “Private Limited Company” provided under Section 6 (68 ) of the Companies Act, 2011 Act. Subsequently, a private company will require an OPC by purchasing related to limited companies. One person company, on the other hand, is given various exclusions and thus, the compliance-related burden is less.
2. Permanent succession
An individual’s company is an involved entity, as well as a component of permanent legacy and will also make it easier for entrepreneurs to capitalize on the business. OPC formation in Chennai is the artificial entity of its owner. Therefore, creditors should be warn that their claims against the business cannot be accept against the proprietor.
3. Easy to get loan from banks
Banking and financial institutions prefer to lend money to a company rather than to owned companies. In most cases, entrepreneurs convert their pay firm into a private limited company before authorizing the funds. So it is ideal to register your start up as a one person company instead of a proprietary firm.
4. Annual return filing
One person must be sign by the director for the annual return of the company. The mandatory requirement of the company secretary’s signature does not apply to the OPC.
5. It is not a prerequisite to hold annual or special general meetings
Only the resolution is deliver by the member by the organization and is enter in the minute book and sign by the member and has the date, and such date is consider as the date of the meeting.
6. Board meeting
An individual company can lead at least one meeting of the Board of Directors at a rate of 50% per calendar year, and the distance between the two meetings should not be less than ninety days.
Disadvantages of OPC in Chennai
A. Members:
A person can have a minimum or a maximum number in the company. No. 1 member
A minor will not be eligible to be a member or nominee of the company or will be able to hold shares with a beneficial interest.
Only a natural person who is an Indian citizen and a resident of India, one person will be eligible to join the company and that one person will be the nominee for the sole member of the company.
B. Suitable only for small business:
OPC registration in Chennai is only suitable for small businesses. The maximum paid up share capital in OPC can be Rs 50 lakh or turnover Rs 2 crore. Otherwise OPC needs to be convert into a private limited company.
C. Business activities:
An individual company cannot carry out non-banking financial investment activities, including investing in the securities of any of the corporates.
An individual company cannot be incorporate or convert into a company under Section 8 of the Act.
D. Official Success:
This is the idea of creating a separate legal entity for a legal succession that challenges the continuity of the company even after the death or retirement of a member. This is because the person whose name is suggest in the Memorandum Association will become a member of the company in the event of the death of the current member.
Although it is doubtful that he will do any good for the company as the person is not a member of the company and is not involve in the day-to-day operations of the company, he will not be able to succeed in business after death.
Although AGM, EGM, quorum of meetings, restriction on right to vote or filling in its financial statements, the law gives a lot of leeway to a one person company. Work required Monopoly ownership. These procedural difficulties regarding the inclusion of a one person company may make the concept less appealing to sole proprietors.
E. Owner and control sharing:
This is a characteristic of the company, which has been seriously challenge by the new Companies Act, 2013, where the line between ownership and control is blur. Which can leads to unethical business.
F. Other failures:
No person shall be eligible to be involve in more than one Person Company or to be a nominee in more than one such company.
NRIs are not allow to include one person in the company.
Need to appoint a nominee to include a one person company