The idea of One Person Company (OPC) in India was introduced to give a boost to entrepreneurs who have great potential to start their own venture by allowing them to create a single person company. Since no intervention from any third party is seen, it makes it more beneficial. So, if you want to start up your own business, you don’t have to worry about all the complex and tedious processes.
One Person Companies are helping tremendously in increasing the overall economy of India. More and more Entrepreneurs are coming up and setting up their business. Since no intervention from any third party is seen, it makes it more beneficial.
One Person Company, which is a new concept in India, already sees a big boom. A huge impact on the economy and development of the nation is expected. It gives opportunities to many and will, therefore, bring creative and young minds in front of everyone. So, if you want to start up your own business, you don’t have to worry about all the complex and tedious processes.
Step 1. Obtain DSC and DIN: The proposed directors must obtain a Digital Signature Certificate(DSC) from 8 authorized DSC makers.
Step 2. Reservation of name: An application for the reservation of a suitable name must be made in Form No. INC-1.
Step 3. Entrenchment Provisions: In case the articles of association contain provisions for entrenchment, the company must inform the Registrar of such provisions in Form No.INC-2 at the time of incorporation of the company or in a case of existing companies (by amendment of the articles of association), the same must be filed in Form No.MGT-14 within 30 days from the date of entrenchment of the articles.
Step 4. Articles of Association: Model articles of association have been provided in Tables F, G, H, I and J of Schedule I, as are applicable, and can be adopted by a company either in totality or otherwise.
Step 5. Application for incorporation of OPC: An application must be filed, with the Registrar of Companies(ROC) within whose jurisdiction the registered office of the company is proposed to be situated, in Form No.INC-2.
Step 6. Signing of Memorandum and Articles of Association: The MOA and AOA of the company must be signed by the sole member who is also the subscriber to the memorandum, who must give details of his name, address, description and occupation, if any, in the presence of at least one witness who must also attest the signature and must also sign and give his details.
Step 7. Affidavit of Subscriber and the director: The affidavit must be submitted by the sole member who has subscribed to the memorandum and named in the articles in Form No.INC-9.
Step 8. Particulars of Subscriber: The sole member must file the particulars of subscription with the Registrar at the time of incorporation.
Step 9. Nomination by the sole member:
(1) The subscriber to the memorandum of a One Person Company must nominate a person, after obtaining prior written consent of such person, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.
(2) The name of the person nominated shall be mentioned in the memorandum of One Person Company and such nomination in Form No INC-2 along with consent of such nominee obtained in Form No INC-3.
Step 10. Declaration by professionals: The declaration by an Advocate, a Chartered Accountant, a Cost accountant or Company Secretary in practice shall be in Form No. INC-8.
The Ministry of Corporate Affairs (MCA) has issued an integrated incorporation form INC-32. So now, an OPC can be incorporated online by filling the Simplified Proforma for Incorporating Company Electronically (SPICe) form in Form INC-32 (using Digital Signature Certificate of the Director)along with (eMOA) in Form INC-33 and (eAOA) in Form INC-34.
The name of your OPC is very important. Your OPC’s name is the first impression to your buyers, suppliers, and stakeholders. It should be attractive, relevant and suggestive. There are several factors that you should keep in mind while choosing a name for your company.
Short & Simple
The name should be concise and not be too long. People should be able to recall and pronounce your company’s name easily the first time they hear or read it.
The name of your OPC should be relevant to your business. It should fit the company’s branding strategy. For example, Infosys refers to information systems or IT technologies.
Name of your OPC should not be exactly the same or identical to an existing LLP or company or trademark or for which a trademark has been applied for. You can go to search.CAJodhpur.com to check if your company name matches any others. Ideally, you should avoid plural version e.g, “Snapdeals” or merely changing the letter Case or punctuation marks or spacing in an existing LLP, Company and Trademark name.
OPC’s are not required to end their name with “Private Limited” or “Limited”.
Should not be illegal / offensive
The name of your LLP should not be against law. It should not be abusive or against the customs and beliefs of any religion and should not use words or phrases which are used as a slur and are offensive to a particular group of people. Further, names cannot include foul words or phrases.
Should not violate any laws
Your OPC’s name should not be given under and violate the Emblems and Names (Prevention of Improper use) Act, 1950. Click here to check the names. (See the Schedule).
Should not use the words “British India”.
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