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9 Articles to Read Before One Person Company
A detailed comparison of One Person Company (OPC) vs Private Limited Company in India. Currently its better to register a Private Limited Company than OPC.
One person company is a type of company introduced by the Companies Act, 2013 that has one person as a shareholder and director. During the incorporation of a one person company, the sole director & shareholder must propose a person as his/her nominee.
Process for company registration as announced by the MCA for the year 2018. The MCA has simplified the company incorporation process by introducing Reserve Unique Name (RUN) form for simplifying name approval process and reducing incorporation fee for private limited companies.
GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online with expert help from Bizcruise and obtain your GSTIN in less than a week from the comfort of your home.
File GST return online through Bizcruise with GST Expert Support. You can prepare and file GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through Bizcruise. In addition to filing GST returns, you can also issue GST invoices and record purchases on LEDGERS to automatically file GST returns.
Online trademark registration, trademark search, documentation and Expert help for TM filing. Easily submit your trademark application for just Rs.5988 in less than a day from the comfort of your home. Bizcruise provides a range of trademark services from trademark filing to objection handling.
One Person Company Bank Account Opening
Bank Account Opening
The Reserve Bank of India has laid out Know Your Customer (KYC) norms for opening of current account in the name of a partnership firms and all Banks have procedure to open partnership current account in business name based on partnership deed. Partnership deed is required to open a current account or business account for a partnership firms.
How long is the incorporation of the Company valid for?
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.
What is a Digital Signature Certificate?
A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.
What is Director Identification Number (DIN)?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
What is authorized capital fee?
Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.
How many people are required to incorporate a One Person Company?
To incorporate a One Person Company, a Director and a nominee is required. A nominee member is one, who shall, in the event of promoter member`s death or incapacitation become a member of the Company.
What are the requirements to be a Director or Nominee in a OPC?
Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member. The Director or Nominee must also be over 18 years of age. A person can incorporate upto five One Person Companies.
What is the capital required to start a One Person Company?
One Person Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the OPC. There is no requirement to show proof of capital invested during the incorporation process.
Is an office required for starting a One Person Company?
An address in India where the registered office of the One Person Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.
Do I have to be present in person to incorporate a One Person Company?
No, you will not have to be present at our office or appear at any office for the incorporation of a One Person Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.
What are the documents required for incorporation?
Identity proof and address proof is mandatory for all the proposed Director and Nominee of the One Person Company. PAN Card is mandatory. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
How long will it take to incorporate a One Person Company?
IndiaFilings.com can incorporate a One Person Company in 7-15 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.
What do I need to quickly incorporate my One Person Company?
To incorporate a One Person Company quickly, make sure the proposed name of the Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.
Udyog Aadhaar Registration for MSMEs
Udyog Aadhaar or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government. The main objectives of the MSME department with respect to providing Udyog Aadhaar registration are as follows:
- To enable the micro, small and medium enterprises to compete with international competition efficiently;
- To promote the growth of micro, small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
- To extend the benefits of various government scheme at one stop to the SSI units;
- To safeguard SSI from financial harassment in the hands of big industries.
Udyog Aadhaar Eligibility
|Classification||Manufacturing Sector||Service Sector|
|Micro Enterprise||Upto Rs. 25 lakhs investment in plant & machinery||Upto Rs. 10 lakhs investment in equipment|
|Small Enterprise||Upto Rs.5 crore investment in plant & machinery||Upto Rs.2 crores investment in equipment|
|Medium Enterprise||Upto Rs.10 crore investment in plant & machinery||Upto Rs.5 crores investment in equipment|
Benefits of Udyog Aadhaar
Udyog Aadhaar registration is provided free of cost by the Government and its simple and easy to obtain online. After obtaining Udyog Aadhaar, a business can enjoy the following benefits:
- The applicant will receive financial support for participating in foreign expos to showcase their products.
- The applicant will also be eligible for government subsidies.
- Registration would facilitate the hassle-free opening of current bank accounts in the name of the business.
- It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
- Easier sanction of bank loans at lower interest rates.
Documents Required for Udyog Aadhaar
The applicants personal Aadhaar is the main requirement for obtaining Udyog Aadhaar in case of a proprietorship. No further documents are required other than an email and a mobile number.
- In case of proprietorship, the applicants Aadhaar must be used.
- In case of a partnership, the partners Aadhaar can be used.
- In the case of a company, the Directors Aadhaar can be used.
- In the case of LLP, the Designated Partners Aadhaar can be used.
If an applicant or authorized signatory of a business does not have Aadhaar, then he/she must first apply for Aadhaar at an Aadhaar enrolment centre. Once, the Aadhaar is obtained, the Udyog Aadhaar process can be started.
All companies in India are required to hold an annual general meeting each year, in addition to any other meetings and not more than fifteen months should elapse between the dates of subsequent annual general meetings. One Person Company is exempt from holding an annual general meeting or extraordinary general meetings. The resolution signed by the single Director and entered into the minutes book is sufficient, in lieu of a General / Extraordinary General Meeting.
Every company in India is required to prepare and file financial statements that includes balance sheet, profit and loss account, cash flow statement, statement of changes in equity and explanatory notes. In case of One Person Company, cash flow statement is not required.
- Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
- Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
- Legal entities like Company or LLP cannot incorporate a OPC.
- The minimum authorised capital is Rs 1,00,000.
- A nominee must be appointed by the promoter during incorporation.
- Businesses involved in financial activities cannot be incorporated as a OPC.
- OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.
Thus, a one-person company can be formed by an Indian citizen who has his/her presence in India for at least 182 days during the immediately preceding calendar year. A person can incorporate not more than one OPC. Finally, an OPC is prohibited from having a minor as its member.