Checklist of Documents For Incorporation Of One Person Company
1. Identity proof of Applicant and Nominee- PAN is mandatory for Indian Residents and Passport is mandatory for foreign nationals.
. 2. Address Proof of Applicant and Nominee- Voter Id card/ Aadhar card/ Driving License/ Bank Statement/ Mobile Bill (Bank Statement/ mobile Bill, any one of them is not older than two months.
3. Proof of office Address- Electricity bill/ Water Bill/Gas Connection.
4. NOC from the previous owner/ Rent Agreement of the premises.
5. Copy of Utilities Bill of the Proposed Premises (not older than two months).
6. Photographs of the Applicant and Nominee- 5 photographs.
7. Education qualification of Applicant.
1) DSC and DIN of the proposed Applicant.
2) DIN of the Nominee.
3) Desired six names of proposed new company.
4) Authorized and Paid up capital of the proposed company.
5) Main objects of the proposed company.
6) Address of the registered office with pin code.
7) Email id and contact details of the proposed directors and company for MCA Acknowledgements.
8) NOC from the sole proprietor/ partners/other associates/ existing company
9) Details of Directors (Names, DIN No. s and their directorship in other companies)
10) Details of shareholders of proposed new company.
The cost for registration of one Person Company is comparatively lower than the cost of registration of private limited company.
The One person Company includes in the definition of “Private Limited Company” given under section 2(68) of the Companies Act, 2013. Thus, an OPC will be required to comply with provisions applicable to private companies. However, OPCs have been provided with a number of exemptions and therefore have lesser compliance related burden.
Only a natural person, who is an Indian citizen and resident in India, shall be eligible to incorporate a One Person Company. It must have a minimum of One Director; the Sole Shareholder can himself be the Sole Director.
The Shareholder shall nominate another person who shall become the shareholders in case of death/incapacity of the original shareholder. Such nominee shall give his/her consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and resident in India, shall be a nominee for the sole member of a One Person Company.
To Directors and Shareholder the most significant reason for shareholders to incorporate the ‘single-person company’ is certainly the desire for the limited liability. An OPC gives the advantage of limited liability to entrepreneurs whereby the liability of the member will be limited to the unpaid subscription money. This benefit is not available in case of a sole proprietorship.
This leads to fast decision making and execution. Yet he/she can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.
In an OPC, it is possible for a company to make a valid contract with its shareholder or directors. This means as a director you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend money to your own company and earn interest. Directors’ remuneration, rent and interest are deductible expenses which reduce the profitability of the Company and ultimately brings down taxable income of your business.