OPC Registration in Mumbai

OPC Registration in Mumbai

The Companies Act, 2013 introduced a new concept of business organization. This form of organization is called One Person Company (OPC). An entrepreneur can carry on the business in the Sole-Proprietor form of business to enter into a Corporate Framework. One Person Company is a mixture of Sole-Proprietor and a corporate form of business, which means it has advantages available from both the form of organizations. Introduction of One Person Company (OPC) was presented to aid the individual entrepreneurs. One Person Company has only one member. The member needs to appoint his nominee, so that in case of death or insolvency of the member, nominee becomes the new member of OPC. A single person was not able to start a Company previously, as at least two Directors and Members are required to establish a private company, whereas, in a Public Company, three Directors and seven members are required. But now, as per Section 62 of the Company’s Act 2013, a company can be formed with just one Director and one member. It is another form of a private company.

You can register an OPC company from Mumbai with Company Vakil. Mumbai (earlier Bombay) is country's  largest city and serves as the capital of Maharashtra. It is a land of financial, commercial and entertainment industries (Bollywood or the film industry). It also houses institution like the Reserve Bank, the Bombay Stock Exchange, the National Stock Exchange  (NSE) etc. Mumbai has immensely diversified geography and culture. People from all walks of life reside here. The major source of attraction in Mumbai includes the Juhu Beach, Marine Drive, Taj Hotel, the metro, and the local trains.

For registration of a One-Person Company in Mumbai, one must have an in-depth knowledge of its features and facilities. For this, one can consult the services of Company Vakil. It offers services in company registration like registration of Pvt. Limited Company, LLP registration and OPC Registrations in Mumbai. Get a consultation for registration of a one-person company in Mumbai by arranging an appointment with Company Vakil.

Introduction of the concept of One Person Company has brought a revolution in the corporate sector of the country. An OPC is required to get itself registered, to ensure the productivity of the company. Following are the major reasons to register the One-Person company in Mumbai:

• Separate Legal Entity: One Person Company enjoys the recognition as a separate legal entity and is considered distinct and different from its sole director and owner.
• Improved Credibility: By registering, the integrity of One Person Company can be upgraded as a corporate entity which allows the service providers to yield more projects from the potential clients.
• Single promoter: It is easy for the sole owner and promoter to manage and get it registered by following easy steps.
• Easy and Online: The registration process is quite easy, affordable, efficient, guaranteed and moreover, one can get the OPC registered online in Mumbai through Company Vakil without any hassle.
• Less Compliance: OPC Registration in Mumbai demands lesser compliance in comparison to Private companies and other forms of companies.
• Limited Liability: OPC protects the assets of the promoter by providing limited liability protection services, similar to that of private companies.

Process for One Person Company Registration in Mumbai:

• Obtain Digital signature certificate (DSC) - The first and foremost step is to get the Digital Signature Certificate (DSC) of the proposed Director. It requires the following documents:

1. Valid Email Id
2. Phone Number
3. Address Proof
4. Aadhaar card
5. PAN card
6. Photograph

• Obtain Director Identification Number (DIN) -Once the process of Digital Signature Certificate (DSC) is completed, the next step is an application for the Director Identification Number (DIN) of the proposed Director in the Form DIR – 3 along with the name and the address proof of the director.
• Name search and finalization - While incorporating an OPC, the next step is to decide on the name of the Company. One has to file INC – 1 to get the name approval from the Ministry of Corporate Affairs (MCA). This can be done by giving six names in the order of the preference.
• SPICe form submission - All the documents need to be attached to SPICe Form, i.e. MOA and AOA along with the directors' and professionals' DSC, and to be uploaded to the MCA site for their approval.
• Certificate of Incorporation - Upon verification, the Registrar of Companies (ROC) issues a Certificate of Incorporation and one can commence one’s business after receiving a Certificate of Incorporation.
• You can avail the services of Company Vakil for a detailed guide and get your One-Person Company registered in Mumbai in a minimum time period.

Reasons to get an OPC Registration in Mumbai

I often encountered a question that many single founders ask, that whether they can register a private limited company. OPC is already in existence but due to lack of awareness, people are still unaware of this type of company.

When you are a single owner and want to establish the business, then you can choose One Person Company (OPC) as your form of business.

Reasons as to why you should opt for One Person Company (OPC) as your form of business:-

1.     Body Corporate: One Person Company was introduced in the year 2013 and it is by nature a private limited company. Further, it is a body corporate, that means it has a separate legal existence and therefore, in the event of any legal case, it is the company that will be liable and not you personally. For instance, Mr. A got injured by using your product, now he can sue your company and demand a claim, but he cannot sue you personally because you are working under a company which is a separate legal entity.

2.     No Minimum Capital: Though it was abolished in the year 2014, but people are still not aware about it. To register a One-Person Company (OPC) in Mumbai, there is no requirement of a minimum capital amount. You can choose as per your capacity. For instance, if you want to start a company with Rs.5000, you are allowed to do it so.

3.     No High Cost for Compliance's: This is the strongest myth that people are aware of. First of all, OPC Company is the freest company than any other type. Further, compliance's under OPC are not to be afraid off, because it may cost you 8 to 10k yearly compliance that you prepare a proper legal file which can be of immense use e.g. to apply for a loan, credit card, CC limit, applying for tender etc.

4.     Easy funding: Most people are not aware that funding is based on your civil score and if you have a bad civil score then it is difficult to get the loan. However, if you have incorporated a company, then your civil score is of value because then OPC civil score will be checked and hence, you can avail loan funding even when your civil score does not allow you to.

5.     Easy hiring: Do you know the most difficult part of establishing a start-up is to build a good team and as per a research, it is found that it is easier to hire people in a private company than under proprietorship. A proprietorship is not a registered form of business and therefore has no legal existence. Hence, form a company and build a team.

6.     Easy conversion into Private Limited Company: Also, it is not that once OPC is established, it can’t be converted into a private limited company. As per law, you can easily convert the OPC into a private company by just filing a single form. However, at least 2 years must have been passed.

7.     Minimum requirements to register OPC:  Further, it is very easy to register a one-person company in Mumbai. You just need to fulfill the following requirements:

• One founder and one nominee is required. The nominee is the person who shall take over the company in the event of the death of the sole owner.
• PAN card, Aadhaar card, and bank statement are required for both owner and nominee.
• Electricity bill and NOC is required for the place where the company is to be registered.

8.     Mandatory Conversion to Private Limited Company: Once the company reaches a turnover of Rs.2 Crore and the capital is increased to Rs.50 lakh then it is mandatory, that the One Person Company (OPC) is converted into a Private Limited Company, by filing a single form.

10. International Recognition: People who are involved in the export business know that how much difficult it is to establish the export business because the person abroad doesn't trust easily, so OPC Registration in India helps building a trust factor internationally.

In nature one-person Company (OPC) is a kind of small private limited company and just like other companies, its details are also available in the government domain, therefore it becomes easier to establish trust, internationally.

Minimum Requirements for One Person Company Registration in Mumbai

Following are the requirements that are needed to be complied with for starting One-Person Company registered in Mumbai:-

1.     It is stated that only a natural person who is the resident of our country will be eligible to act as a member and nominee of a One-Person Company.

2.     No one can be a part of two or more OPCs. A person can join only one OPC.

3.     Minimum one shareholder and one Director are required for its registration. The director and the promoter can be the same person.

4.     One nominee is also required.

5.     The Minimum Authorised Share Capital required is to be Rs. 1 Lakhs.

6.     Director Identification Number is required for the directors, and Digital Signatures are required from a promoter and a witness.

7.     After the OPC is registered, the company will have to maintain proper books of accounts and also will have to participate in a Statutory Audit of Financial Statements. Along with that, OPC will have to file a business income tax return every year before 30th September.

Advantages & Benefits of OPC Registration in Mumbai

The principal advantage of One Person Company (OPC) is that there can only be one member to start an OPC. OPC is a separate legal unit shied to the promoters as well it has continuity of business and is easy to incorporate. Apart from enjoying, a recognition and prestige as a separate legal entity, OPCs has following advantages:

• Easy Funding

OPC can generate its funds through various sources like financial institutions, angel investors, venture capital etc. thus progressing itself towards a private limited company.

• More opportunities due to Limited liability

One of the major advantages that One-Person Company enjoys is that it has more opportunities since the liability of the OPC is limited and the individual can take more risk in business without affecting or suffering the loss of personal assets. It is the encouragement to new, young and innovative start-ups.

• An OPC can avail the various benefits that are being provided to the Small-Scale Industries like easy funding from the bank or the lower rate of Interest on loans without depositing any security in return.
• OPC having bad credit rating may also get the loan. If the rating of OPC is as per the norms, then the credit rating of the OPC is immaterial.
• The remuneration that is paid to the director will be allowable for deduction as per income tax laws. Benefits of presumptive taxation are also available to the OPCs which are subject to income tax act.
• The newly set-up OPC is small, micro, or medium, hence it is covered under the Enterprises Development Act, 2006 act. Thus, OPC enjoys the benefits of this act as well. As per this Act, if the buyer receives his/her payment after a specified period, he is entitled to receive three times the interest on the bank rate.