How Is A One Person Company Formed?

Forming a One Person Company (OPC) in India involves steps and regulatory requirements.

1. Obtain a Digital Signature Certificate (DSC): First, acquire a Digital Signature Certificate (DSC) for the OPC director from certified agencies; it's vital for signing registration documents digitally.

2. Obtain Director Identification Number (DIN): The subsequent step involves obtaining a Director Identification Number (DIN) for the proposed director by submitting Form DIR-3 to the Ministry of Corporate Affairs (MCA). If the director already possesses a DIN, this step can be omitted.

3. Name Reservation: Choose a unique name for your OPC that complies with MCA's guidelines, and apply for name reservation online using Form SPICe+.

4. Memorandum and Articles of Association (MOA and AOA): Draft the MOA and AOA for your OPC, outlining its objectives and internal rules; consider professional guidance for this crucial step.

5. Application for Incorporation: Complete the incorporation application by submitting Form SPICe+ with essential documents, such as the MOA and AOA, and provide details of the proposed director and nominee director.

6. PAN and TAN Application: Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your OPC through the MCA's portal or the NSDL website.

7. Registered Office Address: You must have a registered office address for your OPC. Provide the necessary documents to prove the registered office's ownership or lease agreement, along with a No Objection Certificate (NOC) from the property owner.

8. Consent and Declaration: The proposed director and nominee director must sign Form INC-3 to consent to their roles as directors and submit Form INC-9, confirming their clean record in company management.

9. Filing Fees Payment: Pay the requisite filing fees for the incorporation process as per the MCA's fee schedule. Payment can be made online through the MCA portal.

10. Certificate of Incorporation: After the MCA reviews your application and documents, you'll obtain the Certificate of Incorporation (COI), confirming your OPC's official existence.

11. Commencement of Business: An OPC can commence its business operations after obtaining the COI. However, it must file a declaration of commencement of business within 180 days from the date of incorporation.