Setting up a One Person Company (OPC) in Rajasthan, India, is a promising venture for solo entrepreneurs. This type of legal entity arrangement lets you own everything, but only you, which makes it an excellent choice for people who want to start their own business. But figuring out the rules and regulations needs careful paperwork to make sure you follow the state’s laws and rules. In this blog we will look into the documentation required for Registering an OPC in Rajasthan.
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Meaning of Open Person Company
One Person Company (OPC) Registration is same as the establishment of a Private Limited company in India, wherein a single individual is permitted to register a company in accordance with the regulations outlined in the Companies Act of 2013. OPC is particularly well-suited for individuals who are the exclusive proprietors of their businesses and seek to enjoy the advantages associated with Limited Liability. The One Person Company (OPC) serves as an alternative to the sole proprietorship business entity.
The ownership structure of OPC entails a clear distinction between the company and its proprietor, with the latter possessing the entirety of the company’s shares. In the context of a One Person Company (OPC), it is imperative that there be a sole shareholder, yet the possibility of having several directors remains feasible. Then the registration verified customer will be able to setup an OPC.
Features of One Person Company
Features of One Person Company are:
- Limited Liability: This implies that the personal assets of the Shareholder will remain secure and unaffected, even in the event of losses and indebtedness incurred by the OPC.
- Separate Legal Entity: The One Person Company (OPC) is an independent legal entity. The entity has the capacity to possess assets, establish contractual agreements, and participate in legal activities under its own legal identity.
- Nominee Director: it is mandatory for a One Person Company (OPC) to choose a nominee director who has the responsibility of overseeing the company’s operations in the event that the single proprietor becomes disabled or deceases. This measure guarantees the uninterrupted operation of the enterprise.
- Conversion: As a business expands, it is possible to convert an OPC (One Person Company) into a private limited company, so enabling the inclusion of additional shareholders and facilitating a greater inflow of cash.
- Compliance ease: The ease of compliance is a notable advantage of operating private limited companies (OPCs) as they typically entail less complex compliance obligations in comparison to alternative company structures. This characteristic renders OPCs appealing to individuals who are proprietors of small businesses or aspiring entrepreneurs.
One Person Companies (OPCs) have gained significant popularity among solo entrepreneurs, professionals, and small business owners in India. The registration fees for one person company in Rajasthan incurs Rs 5599 which include government stamp duty applicable and other professional charges.
Registration process of One Person Company in Rajasthan
In the Indian state of Rajasthan, registering a One Person Company (OPC) requires a procedure that must be followed in order and compliance with applicable laws and rules. A quick rundown of the registration process is provided here:
- Digital Signature Certificate: The initial stage involves acquiring a Digital Signature Certificate (DSC) specifically for the sole director of the One Person Company. The Document Submission Centre is utilized for the electronic submission of official papers to governmental authorities.
- DIN: The Director Identification Number (DIN) is a unique identifier assigned to directors of companies in order to maintain a record of their personal information and track their activities within the corporate sector.
- Name Reservation: Select an exclusive name for your One Person Company (OPC) and verify its accessibility. The process of applying for name reservation can be initiated by accessing the Name Reservation portal provided by the MCA
- MOA & AOA: Article & Memorandum of association need to be prepared.
- Verification of Address: Please furnish evidence substantiating the registered office address of the One Person Company (OPC). Documents that could be provided include a power bill, property tax receipt, or a No Objection Certificate (NOC) issued by the property owner.
- Registrar of Companies: This includes the completion and submission of the DIN application, obtaining approval for name reservation, drafting, and filing the Memorandum of Association (MOA) and Articles of Association (AOA), as well as securing the consent and affidavit of the director and nominee director.
- Approval by the RoC: The review of your application will be the responsibility of the RoC. Your One Person Company (OPC) will be officially registered once the required processes are fulfilled and the Certificate of Incorporation is issued.
- PAN & TAN: It is important to submit an application to the proper tax authorities to obtain a PAN & TAN for your One Person Company.
- Initiate Business Operations: Upon obtaining the Certificate of Incorporation, your One Person Company (OPC) is prepared to launch its business operations.
Document require for One Person Company Registration in Rajasthan
The registration documents required for the one-person registration in Rajasthan are:
- Driving License
- Aadhar Card
- PAN Card
- DIN
- Mobile number & Email address
- Utility bill
- Latest bank statement
- Passport size photograph
- Address proof in the name of director
Document one gets post One Person Company Registration in Rajasthan
You will obtain numerous vital documents verifying your One Person Company (OPC)’s legal existence and status after registering an OPC in Rajasthan. Business operations, compliance with legislation, and firm identification depend on these documents. The essential documents you’ll receive are explained below:
- The Certificate of Incorporation is a document of utmost significance that will be provided to you. This document serves as confirmation of the official registration of your One Person Company (OPC) with the Registrar of Companies (RoC) in the state of Rajasthan.
- The Memorandum of Association (MOA) is a legally binding agreement. The concept elucidates the association between the corporate entity and its constituents.
- The rules and regulations that govern the One Person Company’s (OPC) internal administration and management are included in the AOA. The responsibilities and duties of the directors, shareholders, and other corporate officers are outlined in the document.
- The issuance of a Director Identification Number (DIN) certificate is contingent upon the director’s application for a DIN during the registration procedure. This certificate functions as evidence of the director’s distinct identifying number.
- The recipient will be provided with a Permanent Account Number (PAN) card, which is issued by the Income Tax Department. Ensuring compliance with tax regulations and facilitating tax-related activities is crucial for the effective management of your OPC.
- A formal acknowledgment will be sent for the submission of your application for a Tax Deduction and Collection Account Number (TAN). The provision of this numerical value is necessary for the purpose of tax deduction at source (TDS) and compliance linked to Tax Deduction and Collection Account Number (TAN).
- Applicants who successfully complete the registration process will be awarded Digital Signature Certificates (DSCs).
- A share certificate is provided to the single member of the One Person Company (OPC) as a formal acknowledgment of their ownership of the company.
- Additional licenses or permissions may be required based on the specific type of your firm, pertaining to the regulations and requirements of your industry.
Conclusion
For this reason, Registering an OPC in Rajasthan requires a lot of careful work and following the law. The paperwork is very complicated, but the sole owner is only responsible for a small amount of it, which makes it easier for the business to grow. People who want to start their own businesses in the lively state of Rajasthan can do so with confidence if they carefully gather the necessary paperwork and follow the steps that have been laid out.
