A One Person Company (OPC) is a relatively new concept introduced in India through the Companies Act, 2013. It is designed to provide an individual entrepreneur the benefits of a corporate entity while retaining full control over the business.
OPC with OPC registration in Tirupur allows a single individual to form a company without the need for a co-founder or partner, thereby simplifying the registration process while offering the merits of limited liability, separate legal identity.
Key Features of an OPC
- Single Promoter: As the name suggests, an OPC can be formed by a single person who acts as both the shareholder and the director. This makes it an ideal option for solo entrepreneurs who want to avoid the complexities of managing partners or other directors.
- Limited Liability: One of the biggest advantages of an OPC is limited liability. In this structure, the personal assets of the promoter are protected, and the individual’s liability is limited to the amount of investment in the company. This separation between the owner and the company protects personal assets from business risks.
- Separate Legal Entity: Despite being operated by a single person, an OPC enjoys the status of a separate legal entity. This means the company can own assets, incur debt, and sue or be sued independently of its owner.
- Nominee Requirement: The OPC framework requires the appointment of a nominee during incorporation. In case the sole promoter becomes incapacitated or unable to run the company, the nominee steps in to ensure business continuity. The nominee must provide their consent in writing and can either accept or reject the role when the time comes.
- No Requirement for Annual General Meetings (AGMs): Unlike other types of companies, OPCs are exempt from holding Annual General Meetings (AGMs). This reduces the administrative burden on the sole proprietor, simplifying business operations.
- Restrictions on OPC: Despite its advantages, an OPC comes with certain limitations. For instance, an OPC cannot engage in Non-Banking Financial Company (NBFC) activities, investment activities, or conduct any financial lending. Moreover, an OPC must convert into a Private Limited or Public Limited Company if its paid-up capital exceeds ₹50 lakh or its average annual turnover exceeds ₹2 crore for three consecutive years.
Documents
The documents for Online OPC registration in Tirupur are given below.
1. Identity Proof of the Director and Nominee
Both the sole director and the nominee are required to submit identity proof documents. These may include:
- PAN card (mandatory for both director and nominee)
- Aadhar card for Indian citizens
- Passport (if applicable, especially for foreign nationals)
The director and nominee must be individuals, and the nominee must consent to act as the director in case of the original director's incapacity or death.
2. Address Proof of the Director and Nominee
In addition to identity proof, the address proof of the director and nominee is mandatory. The acceptable documents include:
- Voter ID card
- Passport
- Driving license
- Bank statement or utility bills (not older than two months)
3. Photographs
A recent passport-sized photograph of both the director and the nominee must be submitted.
4. Registered Office Address Proof
Proof of the registered office where the company will operate from is crucial. The following documents are necessary:
- Rent agreement (if the office is on a rented property) and NOC (No Objection Certificate) from the landlord.
- Utility bill (electricity, water, or property tax receipt) to confirm the address (not older than two months).
5. Consent of Nominee
A nominee must be appointed for every OPC as per Section 3(1) of the Companies Act, 2013. Consent from the nominee to take on the role of director in the event of the owner’s death or incapacity must be provided in Form INC-3.
6. Digital Signature Certificate (DSC)
Since the entire OPC registration process is completed online, the director must have a Digital Signature Certificate (DSC) for signing electronic forms.
7. Director Identification Number (DIN)
The Director Identification Number (DIN) is a unique ID specifically assigned to directors. It is required for the sole director of the OPC. If the director does not have a DIN, it can be applied for during the OPC registration process.
Conclusion
In conclusion, gathering all these documents in advance helps streamline the registration process for an OPC. By ensuring all paperwork is complete, you can avoid delays and quickly set up your One Person Company to start your business journey efficiently.
