Company Laws in India were completely revolutionized by the Companies Act, 2013, which introduced a few new concepts that didn’t exist before. A game-changer is the introduction of the OPC concept, which involves one person company registration and one company. To begin with, here are the documents we need for OPC registration:
The Definition of a One-Person Company
A one-person company is defined by Section 2(62) of the Companies Act as one with only one member. The members of a corporation are no more than shareholders or subscribers to its memorandum of association. A company that has only one shareholder is, thus, an OPC.
To get registered with the Office of Personnel Management, you will require all the documents listed below. Please refer to the documents listed below:
Identity proof of the Director & Nominee
It can be described as follows:
- Card for voters
- Driver’s license
- Card with a PAN
- Card Aadhar.
Documents such as the Memorandum of Association and Articles of Association
Among the documents mentioned above, the license application must include the ones listed above. Here are those documents:
Message of agreement
The formation of a company occurs when people combine efforts to achieve a common goal. The goal is most often to create a product that people can purchase. Companies must file documents to be incorporated. In addition to the application, documents must be submitted to the Central Registration Center. The Memorandum of Association is the most vital document.
Content of MOA
- Clause of Situation
- The clause defining the object
- Clause of Liability
- Clause of subscribing.
In Articles of Association (AoA), you define the purpose of a business and the policies that govern its operations. In the document, you define how tasks should be handled within an organization.
Despite differences in exact terms and items depending on the jurisdiction, the articles of association are generally the same. The following information is in the articles of association:
- Name provisions for the company
- Capital share
- Organization of the company
- The company’s mission
- Provisions for shareholder meetings.
Nomination of the Designated Nominee
There needs to be at least one director and at least one nominee for a One Person Company. If the directorship should fall vacant due to misfortune, the nominee has the authority to take over so that operations do not cease. On the INC-3 form, the nominee signs his consent. To participate in the proceedings, he or she must also provide proof of identity.
Nominee and Director’s Affidavit
To submit their affidavits, the director and nominee must complete and submit Forms DIR3 and INC-9.
Proof of the Office’s confidentiality
During the registration process, the place of business activities must show proof of residence. Any utility bill from the last two months, such as electricity, gas, or telephone, can serve as proof of ownership if attached to the ownership proof, along with a No Objection Certificate.
All pertinent documents must be submitted in addition to the rent agreement if your workplace is located on rented property.
Card with PAN number
The director’s PAN card and the nominee’s PAN card must be submitted during the OPC registration process.
A passport-sized photo
An official passport-sized photo of the director and nominee must accompany the nomination form.
There are DSCs and DINs
Registration with OPC requires DSC and DIN. As an example, DSC is used to sign documents online, and DIN is used to provide the director with a unique identification number.
The Step-by-Step Process for DSC
Registration of a Director’s DSC is as follows:
- Click the Register DSC link on the MCA portal
- Select the director link on the left side of the screen and enter your Director Identification Number
- Ascertain that the DIN has been approved and that it is properly typed
- It will verify that DINs are valid and approved. When the DIN is submitted incorrectly or if it is not approved, the system will display an error message
- Check the information against DIR-3 and fill in the remaining fields if necessary. If the applicant has filed a DIR-6, fill in the requested information
- Click on Next. Your information will be verified by the system
- Upon entering accurate information, you will be directed to the DSC selection screen
- The select certificate button is used to browse and select a certificate. Verify that the DSC you’ve chosen belonged to the applicant whose data is being recorded
- DSCs are verified by the system. In this case, the system will display an informative message even if the selected DSC is already associated with a DIN. In the event that more than one DSC is associated with the provided DIN, the system will prompt the user to update it
- In the text box below, enter the verification text generated by the display system
- Please click the I agree button to acknowledge that you have provided accurate information
- Click Submit to list your DSC
- There will be an acknowledgement message displayed
- You can print out the acknowledgement for future reference
- The applicant can now use the Reset function to erase the data.
Application for DIN
All current Directors must obtain DIN within the timeframe specified.
SPICe+ Form for application
A DIN allocation option is available in Part B of the SPICe+ form. Continue to file the details in SPICe+ Part B, including any attachments and Form INC-3.
An individual interested in becoming a director of an existing company must complete Form DIR-3 and follow these steps:
Documents supporting the assertion
Please include a photo and a scanned copy of all supporting documentation
- Identity proof
- Documentation of residence according to guidelines.
An applicant must sign the DIR-3 form, which must be digitally verified by a company secretary in full-time employment with the company or a Managing director, director, CEO, or CFO of an existing company. We anticipate the applicant’s appointment as a director.
Payment of fees
Submit and pay the DIR-3 E-Form. Payments can only be made electronically.
- Obtaining a Login ID requires registering on the MCA21 site first
- Payment of the DIN application fee is required in order to process the DIR-3.
Verification of the E-Form
In the case of duplicate information on the DIR-3, it is directed to the DIN cell for back-office processing. Once the form is approved, the provisional DIN becomes the official DIN, which can be used again.
Only when the documents attached to the application have been examined can a provisional DIN be approved.
When a group of people come together for a shared purpose, a company is formed. The Companies Act of 2013 created the One Person Company, which permits any person to create a company in their own name as a director or sole owner. OPC Registration is a simple process, but the documents needed were detailed above.
Vakilseach will be at your disposal if you require expert advice on any aspect of company registration and complete compliance. We’ll work with you to ensure full compliance with all requirements based on your predictable activities, ensuring that your expectations are met productively and timely.