What is One Person Company?
As per the 2013’s act, a new concept “One Person Company” has been introduced. According to this act, a private company required two directors and members to run. Earlier, there were at least three directors and seven members were needed to start an employer. As per the amendment the name was given as “One Person Company” and generally refers as OPC in short.
Process to register as One Person Company
The process to register under this new act, OPC required some mandatory steps to be followed,
- Apply for DSC: This step needed to obtain the Digital Signature Certificate of the director. Some essential documents like Address proof, Aadhaar card, PAN Card, Photo, Email, and phone number required for the application.
- Apply for DIN: DIN stands for Director Identification Number. A person who intended to be the director must have this number. DIR-3 is an application form required to fill for the completion of this process.
- Employer’s name approval application: This step is necessary for the approval of the employer name. The name must follow the format “ABC (OPC) Private Limited”. Two names for the company are allowed to propose by applying through the application SPICe 32. Out of the two names, one name would be selected by the Ministry of Corporate Affairs (MCA). After the approval, we can move to the next step.
- Documentation: Below is the list of documents required to submit to Registrar of Companies, India.
- Memorandum of Association: This contains submission of all the required documents that generated throughout the process of registration of OPC.
- Article of Association: This will contains all the laws on which the company will operate.
- Documents related to the office registration
- NOC from the owner
Final submission to ministry of corporate affairs:
All the essential documents like SPICe form, SPICe MOA, SPICe AOA, and others are collected during the employer registration must be submitted to MOE.
The aforementioned steps are unavoidable in the process of registration of One Person Company.
Guidance on financial and accounting need of Entrepreneurs
Once the company established after fulfilling all the legal requirements, a lot of financial and accounting needs to be taken care of. Most entrepreneurs take guidance from the expert of finance and account as this becomes a crucial department. Some organizations actually work to help entrepreneurs in balancing their finance and accounts figures. They suggest organized ways to keep things sort and easy to handle. As the business person has other things to manage, they prefer to leave the responsibility of financial stuff to such organizations. After getting assistance, the entrepreneur could focus more on product quality.