Tuesday, August 3

How to Incorporate OPC Company in India- Made Simple For You

We discuss what an OPC company is, and also give you an idea of how to incorporate an OPC company in India.

One Person Company in Plain View

One Person Company is basically an Indian government initiative in support of entrepreneurs who have the capability to establish, run and manage a business on their own. They are usually those who have the ability to make a judgment call deemed fit at any given situation.

In India, this concept is provided for under its Companies Act of 2013, which allows one person to create and start a single person economic entity.

 Enticing Reasons to Adopt OPC

One Person Company, as the name suggests, requires just one person to make it a legitimate company. It boasts of autonomy, by virtue of being a separate legal entity that enjoys limited liability protection for the only shareholder.

Since there is only one person required to complete the cast, incorporating an OPC is far simpler than the tedious process that other forms of companies get through under the stipulations provided for in the Companies Act of 2013.

 Thinking Twice on Adopting OPC

The idea of incorporating OPC may seem “a walk in the park.” However, it has complexities just like in any other incorporated business organizations.

The question on how to incorporate OPC Company could well be addressed by the proper authority, the Ministry of Corporate Affairs and reference, which could be found in the law itself.   

The process of how to incorporate OPC Company includes the need to execute a Memorandum of Association (MOA) stipulating all the fundamental data required for the company incorporation. Likewise, you need an Articles of Association (AOA) which provides rules and regulations governing the company.

One Person Company’s MOA

Part of an OPC’s MOA delves on a nomination of a nominee Director by the sole stakeholder. The nominee is given the legal rights to take over as the owner of the OPC in the event that the sole stakeholder becomes incapacitated.

Likewise part of the MOA compels an OPC to transform the business entity into a Private Limited Company if it experiences an annual turnover of Rs.2 crores. Just like bigger business structures, it is also required to file an audited financial statement with the MCA at the end of each Financial Year.

 As such, learning how to incorporate OPC Company should embark on a meticulous study on what an OPC is all about, its leverages, limitations, among OPC’s other distinct features.

How to Incorporate OPC Company in India

MCA has provided a step-by-step guide on how to incorporate OPC Company in India. The guide offers two options:

  1.       Incorporation through SPICe (Without filling Reserve Unique Name) Stakeholders may choose to avail 5 different services namely: Name Reservation, Allotment of Director Identification Number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) online. In the event the MCA web portal restricts access on INC-32 forms [or any other forms for that matter], applicants wanting to know how to incorporate OPC Company in India are advised to attach PDF format of MoA and AoA. Reserving a business name may be done simultaneously with filing SPICe.
  2.       After securing a business name, the applicant may file for incorporation of the OPC within 20 days from the date of approval of RUN. After 30 days, the company should file form INC-22 once form SPICe is registered in case there is a need to reconcile differences in the address of correspondence and registered office address.

Consulting Only the Experts

Before entertaining the idea of formation and incorporation of a company in India, entrepreneurs should be able to fully understand the various types of companies that can be formed. A company can be established for a lawful purpose by the right business advisors with a penchant and expertise in company incorporation services in India.

Interestingly, the search for the right corporate service provider in India should not be as hard as looking for a needle in a haystack. 3E Accounting India, known for its excellence and delivering results in accordance with the preferences of the clients, should be able to help you incorporate a company in India.

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