One Person Company Registration in Mumbai

You must know that according to section 2(62) of the Companies Act, 2013 One Person Company means a company which has only one person as the member. The Concept of One Person Company was introduced in Mumbai, India with the Companies Act, 2013 to uplift Entrepreneurs who have high potential to start their venture without the hassle of finding partners. It is said that with the introduction of the One Person Company there has been a paradigm shift in the Indian Corporate Regime, bringing it at par with the global standards.

Conditions for Formation of (OPC) One Person Company Registration in Mumbai 

1.       According to the rule 4 of the Companies (Incorporation) Rules, 2014 the Memorandum of OPC is required to indicate the name of the nominee, who shall in the case of subscriber’s death or his incapacity to contract will become the member of the Company. This will be done with his prior written consent which will be filed to the registrar of the Companies with the Memorandum and Articles of Association.

2.       Both the member and nominee must be natural person, the Citizen, and the Resident of India for incorporate One Person Company according to rule 3(1) of the Companies (Incorporation) Rules, 2014. The Resident of India means that the person must have stayed in the country for a period of 182 days in the preceding one calendar year.

3.       Rule 3(2) of the Companies (Incorporation) Rules, 2014 states that one person can only be the member or Nominee of one OPC.

4.       According to the rule 3(4) of the Companies (Incorporation) Rules, 2014 a minor cannot become a member or nominee of OPC nor can he hold shares in OPC with beneficial interest.

5.       According to rule 3(5) of the Companies (Incorporation) Rules, 2014 One Person Companies cannot be incorporated or converted into companies incorporated for charitable objects etc. Under the section 8 of the Companies Act, 2013.

6.       OPC’s cannot carry out non-banking financial investment activities including investment in securities of any corporate according to rule 3(6) of the Companies (Incorporation) Rules, 2014.

The OPC cannot convert voluntarily into any other kind of company until 2 years from the date of its incorporation have elapsed except when the paid up share capital is increased above 50 Lakh Rupees or the average annual turnover exceeds 2 Crore Rupees according to rule 3(7) of the Companies (Incorporation) Rules, 2014.

Steps to Incorporate One Person Company Registration in Mumbai 

1.       Obtain Digital Signature Certificate for the proposed directors.

2.       Obtain Director Identification Number for the proposed directors.

3.       Select name of the OPC and apply to Ministry of Corporate Affairs.

4.       Filing of documents including Memorandum and Article of association to registrar, followed by payment of fees and stamp duty.

5.       Receiving the Incorporation Certificate.

Annual General Meeting and Board Meetings:

According to section 96 (1) of the Companies Act, 2013 the provision in relation to Annual General Meeting is not Mandatory to OPC. However, one Board meetings must be held in each half of the calendar year abiding by the process under section 118. Two board meeting must have a gap of 90 days between them. If OPC has only 1 director it is exempted from holding board meetings.

Auditors and Annual Return:

Compulsory rotation of Auditors under section 139(2) is not applicable to OPC. According to the section 92 OPC has to file the annual return signed by the director or company secretary, balance sheet, profit and loss statement within 180 days of closure of Financial Year.

At Legalo, we have a team of experts which can help you to complete your one person company registration in Mumbai smoothly. OPC is a hybrid structure which combines benefits of both sole proprietorship and a company. Our company will legal and professional assistance in incorporating one person company, handling its affairs, and filing returns. Contact us to see how we can help you.