How To Register A Person Company

Before the implementation of the Companies Act in 2013, a single individual could not start a business. If an individual wishes to start a firm, he or she could only do it as a sole proprietorship because a company requires at least two directors and two members.

A private company requires at least two directors and two members, whereas a public company requires at least three directors and seven members. Previously, a single individual could not form a corporation.

Legal Provision:

According to Section 2(62) of the Company’s Act 2013, a company can be founded with only one Director and one member. The director and member may be the same individual. It is a type of company whose compliance standards are lower than those of a private firm. Thus, a one-person company indicates that one individual, whether a resident or an NRI, can establish his or her business, which has the characteristics of a corporation and the benefits of a sole proprietorship.

How to Register A Person Company

• Apply for the DSC: The first step is obtaining the proposed director’s Digital Signature Certificate (DSC), which requires the following documents: Proof of address: Aadhaar card or PAN card, Including your photo, email address, and phone number.
• Apply for the DIN: After creating the Digital Signature Certificate (DSC), the next step is to apply for the Director Identification Number (DIN) of the prospective director in the SPICe+ form, along with the director’s name and address evidence. Form DIR-3 is solely an option for existing companies. It means that the applicant will no longer need to file Form DIR-3 individually beginning in January 2018. DIN can now be entered into the SPICe+ form for up to three directors.
• Name Approval Form: The next stage in incorporating an OPC is deciding on a company name. The Company’s name will be “ABC (OPC) Private Limited”. The name can be approved through the Form SPICe+ application. Only one preferred name and the significance of preserving that name can be specified in the Form SPICe+ application. If the name is refused, another name can be submitted using another Form SPICe+ application.
• Documents Are Required: We must compile and submit the following documentation to the ROC:

1. The Memorandum of Association (MoA) specifies the company’s objectives or the business for which it will be incorporated.
2. The Articles of Association (AoA) establish the by-laws under which the firm will operate.
3. Because there is only one Director and one member, a nominee on behalf of such a person must be appointed so that if he becomes incompetent or dies and is unable to discharge his obligations, the nominee will act on his behalf and take his place. His consent in Form INC -3 would be taken along with his PAN card and Aadhar Card.
4. The proposed Director’s Declaration and Consent on Forms INC-9 and    DIR-2.
5. A declaration by the professional stating that all compliances have been met.

• Filing Forms with MCA: All of these documents will be connected to the SPICe+ Form, SPICe-MOA, and SPICe-AOA, together with the Director’s and professional’s DSCs, and posted to the MCA site for approval. The Pan Number and TAN are created automatically at the time the company is incorporated. There is no need to make separate applications for the PAN and TAN.
• The Certificate of Incorporation: Following verification, the Registrar of Companies (ROC) will award us a Certificate of Incorporation, allowing us to begin operations.
• The suggested directors’ DSC and DIN can be obtained within one day. The Certificate of Incorporation of an OPC is obtained in 3-5 days. The entire process of incorporating an OPC takes around 10 days, subject to departmental permission and a response from the applicable department.

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