How to Register for the One-Person Company?

In the Company Act, 2013, a new concept known as the One Person Company was introduced in the Online Company Registration system. A minimum of two directors and two members are necessary for a private company, whereas a least of three directors and seven members are required in a public company. Previously, one person could not form a company.

For online company registration in Noida, apply with us. But before let's have a complete overview of the one person company registration process.

What is a one-person company called?

A one-person company (OPC) is a business formed by a single individual. A single person could not form a business prior to the implementation of the Companies Act, 2013. If a person wished to start a business, he or she could only do so as a sole proprietorship because forming a company required a minimum of two directors and two members.

 

A company can be founded with just one director and one member, according to Section 2(62) of the Company Act 2013. It is a type of corporation with fewer compliance obligations than a private corporation.

According to the Companies Act of 2013, an individual can start a business with just one member and one director. The director and member can be the same individual. As a result, a one-person company means that a single individual, whether a resident or an NRI, can form a business that combines the qualities of a company with the advantages of a sole proprietorship.

It's important to see one person company registration process in detail and who is eligible to apply for the same.

 

Who is eligible to make one person company registration ?

Only a natural person who is an Indian citizen and resides in India is eligible for one person company registration and nominee. The phrase "resident in India" refers to a person who has spent at least one hundred and eighty-two days(or prescribed by the government from time to time) in India during the previous financial year.

One person company registration process in India

Step 1: Apply for Digitial Signature Certificate

Step 2: Obtain a Director Identification Number (DIN).

Step 3: Submit a Name Approval Request

Step 4: Required Documents like ID proof, Address proof, NOC, AOA& MOA

Step 5: Submitting Files and Forms to MCA

Step 6: The Certificate of Incorporation is issued.

These simple steps help in Online Company Registration with ease, you can hire online ca servcies providers to make the process faster.

 Taxation Rules in one person company registration process

●       Income Tax Returns are required to be filed.

●      TDS must be filled out for the entire quarter, including the TAN. If a corporation has employees, it is required to deduct tax at the source(subject to applicability of TDS).

●       If the OPC employs more than 10 or 20 people, an ESI and EPF registration is required by law.

●    OPC's income is taxed at 25% of its total income for the fiscal year under the tax rate slab subject to certain conditions.

Timeline for one person company registration

The nominated directors' DSC can be obtained in one day. An OPC's Certificate of Incorporation takes 3-5 days to get. The entire incorporation process for an OPC takes about ten days, depending on departmental approval and reply from the proper department.

To apply for one person company registration in India connect with the best online ca servcies providers.

Latest Update in one person company registration process

●       The MCA publishes new Amendment Rules for MGT-7, One Person Company (OPC), and Small Company for the year 2021. The revisions to the rules governing OPCs will take effect on April 1, 2021, as previously stated.

●       NRIs were formerly prohibited from establishing OPCs. Now, any Indian citizen, whether residing in India or not, will be entitled to form an OPC.

●       The recommended time of residency for those claiming to be Indian citizens has been reduced from 182 days to 120 days.

●       The rule prohibiting voluntary conversion unless the OPC has been in existence for two years from the date of incorporation is urged to be repealed, and from April 1, 2021. Conversion of a one-person company into a public company, a private or public firm, instead of a firm enrolled under section 8 of the act, will be prohibited, after raising the least number of members and directors to two or a lowest of seven members and directors.

●       The current limit on paid-up capital and turnover for OPCs (Rs 50,00,000 paid-up share capital and an average turnover of Rs 2 crore over two years) is being removed, allowing OPCs to grow in terms of their paid-up capital and turnover without restriction.

●       Rationalization of e-forms applied to OPCs by denying e-form INC-5 and modifying e-form INC-6 (appeal for conversion from OPC to a Private company or a Public company and Private company to OPC).

Conclusion

One Person Companies are one of the most popular types of businesses in India. For small businesses and individuals, it is the most profitable enterprise. It has the capacity to target the specific clients and markets that are required. Foreign ventures can invest in it as well because the compliance and legal processes involved are less complicated.

 

Legalpillers will guide you in getting all essential Documents and Registration required to Start online company registration in Noida.