A Complete Guide on One Person Company Registration in Udaipur

For a long time, no single person could start a company. The minimum limit for the number of directors of a private company was two and two members. In the case of a public company, there were three directors and seven members. Where would a small entrepreneur who wants to start a business go? He only had one chance to be the owner. To end this obstacle, the Companies Act 2013 introduced One Person Company (OPC).
Udaipur, known as the “City of Lakes,” has been making efforts to promote business and entrepreneurship. Udaipur is strategically located in the state of Rajasthan, which is known for its rich cultural heritage and tourism potential. Being located in Rajasthan, an OPC registered in Udaipur can benefit from the state’s favorable policies, incentives, and resources. In this article, we will discuss One Person Company registration in Udaipur.

Overview of One Person Company

As the name suggests, OPC is a company founded by one person. The company is founded and managed by one person. An OPC has all the hallmarks of a company such as perpetual succession, limited liability, and a separate legal entity.

A minimum of 2 directors and 2 members are required in a private company, while a minimum of 3 directors and a minimum of 7 members are required in a public company. Previously, one person could not start a company.

Section 2(62) of the Companies Act 2013, defines OPC as a company that can be established with only 1 director and 1 partner. A director and a member can be the same person. It is a form of company where compliance requirements are lower than a private company.

Advantages of a One Person Company Registration in Udaipur

This is a new concept and the government has made it very easy for a single entrepreneur to apply and use this form of organization. Let’s look at the advantages of OPC.

• Easy to set up – Registering a one person company is very easy as only one member and one nominee is required. The director of the company can also be a member. The minimum authorized capital is ₹ 1 lakhs and there is no minimum paid-up capital requirement. OPC registration fees are also lower.
• Little Compliance – Many compliance burdens are reduced for a one person company. They include not having to prepare a statement of cash flows. The company secretary does not have to sign the books and annual statements. The director can simply sign these documents.
• Easy to manage – Since only one person is involved, the decision-making process is easy and fast. Ordinary and special resolutions are easily passed and the details are entered in the minutes book. So there is no conflict.
• Legal Status – A sole proprietorship obtains a separate legal status from its member. Thus, the member has protection, and liability is limited by the number of shares held, and no personal loss to the company is involved. Thus, a creditor can sue a one-person company and not a member.
• Easy to raise funds – A One Person Company is called private limited. Thus, venture capital, angel investors, and banks readily provide loans and equity.
• Perpetual Succession – If a member dies, the OPC can continue and it has a separate legal status. After that, the candidate can continue with the business.

Minimum requirements for OPC registration in Udaipur

The minimum requirements for OPC registration in Udaipur are-

• At least one person as director and member
• At least one person as a nominee
• Director’s digital signatures
• No minimum capital requirement
• The director should be an Indian resident
• Director identification number, if available

Documents required for One Person Company registration in Udaipur

A checklist for documents required for the One Person Company registration in Udaipur is below-

• PAN card of the director, subscriber, and representative of the company
• Aadhar Card of Company Director, Subscriber, and Nominee
• Latest bank statement showing the current address (not older than 2 months)
• Photographs of the Director, Subscriber, and Candidate
• Electricity bill/Telephone bill/Broadband bill/Gas bill Company registered address
• Lease agreement for residential address if the property is rented (You can also provide a residential property such as your home address).

Procedure for One Person Company Registration in Udaipur

The procedure for OPC registration in Udaipur is given below-

Step 1: Apply for DSC

The first step is to obtain a Digital Signature Certificate (DSC) of the proposed director, which requires the following documents:

• Address proof
• Aadhaar card
• PAN card
• Photo
• Email ID
• Telephone number

Step 2: Apply for a DIN

Once the Digital Signature Certificate (DSC) is created, the next step is to apply for the Director Identification Number (DIN) of the proposed director in the SPICe+ form along with the director’s name and address. Form DIR-3 is an option available only to existing companies. This means that with effect from January 2018, the applicant does not need to file the DIR-3 form separately. DIN can now be applied within the SPICe+ form for up to three directors.

Step 3: Apply for name approval

The next step in setting up an OPC is to decide on the name of the company. The name of the Company shall be in the form “ABC (OPC) Private Limited”.

The name can be approved in Form SPICe+ 32. Only one preferred name can be given in Form SPICe+ 32 along with the meaning of keeping that name. If a name is rejected, another name can be submitted using a different SPICe+ 32 application form.

Step 4: Required documents

We need to prepare the following documents that must be submitted to the ROC:

• Memorandum of Association (MoA) which are the subject matter by which the company is to be governed or which states the object of business for which the company will be incorporated.
• The Articles of Association (AoA) set out the bylaws under which the company will operate.
• As there is only 1 director and member, a nominee must be appointed on behalf of such person, because in the event of his becoming incapacitated or dying and unable to perform his duties, that nominee will act on behalf of the director and take his place. His consent form INC – 3 will be accepted along with his PAN card and Aadhar card.
• Proof of registered office of the proposed company along with proof of ownership and NOC from the owner.
• Declaration and consent of the nominated director in form INC -9 and DIR – 2 respectively.
• A statement from an expert confirming that all requirements have been met.

Step 5: Filling Forms with MCA

All these documents will be attached to the SPICe+, SPICe-MOA, and SPICe-AOA forms along with the DSC of the Director and Professional and will be uploaded on the MCA site for approval. Pan Number and TAN are generated automatically at the time of incorporation of the company. There is no need to submit separate applications for obtaining PAN and TAN.

Step 6: Issuance of a certificate of registration

After verification, the Registrar of Companies (ROC) will issue a certificate of incorporation and we can start doing business.

Timeline for OPC registration in Udaipur

DSC and DIN of proposed directors can be obtained in 1 day. The OPC certificate is obtained in 3-5 days. The entire OPC incorporation process takes approximately 10 days, subject to departmental approval and returns from the appropriate department.

Final words

It is important to conduct thorough market research, assess the business viability, and consider factors such as competition, target market, and industry trends before deciding to register an OPC in Udaipur or any other location. Consulting with professionals and experts familiar with the local business environment can provide valuable insights and guidance in making an informed decision.

In case of any query regarding One Person Company registration in Udaipur, a team of expert advisors from Legal Window are here to assist you at every step. Feel free to reach us at