HOW WE START OPC IN INDIA ?
INTRODUCTION
One Person Company (OPC) is a new business entity introduced by the Companies Act, 2013. It is a company that is incorporated with only one person as a member and a single director. The member and the director can be the same person.
here are the steps on how to start an OPC in India as per the Companies Act 2013:
Step 1: Documentation
The first step is to gather all the necessary documentation. This includes:
- A PAN card of the proposed director and member of the OPC
- A canceled cheque or bank statement showing the proposed director’s bank account details
- A passport-size photograph of the proposed director
- A memorandum of association (MOA) and articles of association (AOA) of the OPC
The MOA and AOA are the governing documents of the OPC. They set out the company’s objectives, the rights and responsibilities of the members and directors, and the procedures for managing the company.
Step 2: Select a name for your company
The next step is to select a name for your company. The name must be unique and must not be already registered with the Ministry of Corporate Affairs (MCA). You can search for available names on the MCA’s website.
Step 3: Drafting of MOA & AOA
The MOA and AOA must be drafted in accordance with the Companies Act 2013. You can either draft the documents yourself or hire a lawyer to do it for you.
Step 4: Filing SPICE Plus Form
Once the MOA and AOA are drafted, you need to file the SPICE Plus Form with the MCA. The SPICE Plus Form is a one-page form that contains all the details of the OPC, including its name, objectives, registered office address, and the names of the directors and members.
Step 5: Issue of Certificate of Incorporation
Once the SPICE Plus Form is filed, the MCA will issue a Certificate of Incorporation to the OPC. The Certificate of Incorporation is the document that proves that the OPC has been legally registered.
Step 6: Open a bank account
Once the Certificate of Incorporation is issued, you need to open a bank account in the name of the OPC. You will need to provide the bank with a copy of the Certificate of Incorporation, the MOA, and the AOA.
Step 7: Get an accountant
It is advisable to get an accountant to help you with the accounting and taxation requirements of the OPC. An accountant can also help you with filing the annual returns and other statutory filings.
Step 8: Start trading
Once all the formalities are completed, you can start trading as an OPC. You will need to obtain a trade license from the local authorities and register for GST
Some Additional Points to Keep in Mind When Starting an Opc:
- The minimum paid-up capital for an OPC is INR 1 lakh.
- The OPC must have a registered office in India.
- The OPC must have a board of directors, which can consist of one or more directors.
- The OPC must file its annual returns with the MCA.
- The OPC must pay taxes on its profits.
Some Of the Advantages and Disadvantages of Opcs in India,
Advantages of OPCs in India:
- Limited liability: The members of an OPC are not personally liable for the debts and liabilities of the company. Their liability is limited to the amount of their investment in the company.
- Separate legal entity: An OPC is a separate legal entity from its members. This means that the company can own property, enter into contracts, and sue or be sued in its own name.
- Perpetual succession: An OPC is a perpetual entity. This means that it can continue to exist even if the original member dies or becomes incapacitated.
- Easy to set up and manage: OPCs are relatively easy to set up and manage. The process of incorporating an OPC is simpler than the process of incorporating a private limited company.
- Lower compliance requirements: OPCs have lower compliance requirements than private limited companies. For example, OPCs are not required to have a board of directors or to hold annual general meetings.
Disadvantages of OPCs in India:
- Can only have one member: An OPC can only have one member. This means that the company cannot raise capital by issuing shares to other investors.
- Cannot have a board of directors: An OPC cannot have a board of directors. This means that the sole member of the company is responsible for all management decisions.
- Cannot be converted into a public limited company: An OPC cannot be converted into a public limited company. This means that the company is limited in its growth potential.
key points on how to start an OPC in India:
- Choose a name for your OPC. The name must be unique and must not be already registered with the Ministry of Corporate Affairs (MCA). You can search for available names on the MCA’s website.
- Prepare the Memorandum of Association (MoA) and Articles of Association (AoA). The MoA and AOA are the governing documents of the OPC. They set out the company’s objectives, the rights and responsibilities of the members and directors, and the procedures for managing the company.
- Obtain a Digital Signature Certificate (DSC). A DSC is a secure electronic signature that is used to sign digital documents. You will need a DSC to file the SPICE Plus Form with the MCA.
- File the SPICE Plus Form with the MCA. The SPICE Plus Form is a one-page form that contains all the details of the OPC, including its name, objectives, registered office address, and the names of the directors and members.
- Obtain a Certificate of Incorporation from the MCA. Once the SPICE Plus Form is filed, the MCA will issue a Certificate of Incorporation to the OPC. The Certificate of Incorporation is the document that proves that the OPC has been legally registered.
- Open a bank account in the name of your OPC. You will need to open a bank account in the name of the OPC to conduct business.
- Start trading. Once all the formalities are completed, you can start trading as an OPC.
