Benefits of One Person Company (OPC) Registration

One Person Company (OPC) registration has become a popular choice for entrepreneurs and small business owners in India. Here are some of the benefits of registering your business as an OPC :

•Limited Liability: One of the main benefits of an OPC is that it provides limited liability protection to the owner. This means that the personal assets of the owner are protected from any legal action taken against the company. In case of any financial loss or legal issues, the liability is limited to the assets of the company.

•Separate Legal Entity: An OPC is a separate legal entity from its owner. This means that the company can enter into contracts, own assets, and sue or be sued in its own name. This provides a level of professionalism to the business and can help in building trust with clients and investors.

•Tax Benefits: OPCs are eligible for many tax benefits, including lower tax rates and exemptions. Additionally, an OPC can avail of tax benefits for research and development activities, which can help in reducing the tax liability of the company.

•Single Owner: As the name suggests, an OPC can be owned and managed by a single person. This makes it a great option for entrepreneurs who want to start a business on their own, without having to partner with anyone else. It also eliminates the need for a board of directors, making it easier to manage the business.

•Fewer Compliance Requirements: OPCs have fewer compliance requirements compared to other types of companies. For example, an OPC is not required to hold an annual general meeting, which can save time and money. Additionally, the owner of an OPC can be the sole signatory on all official documents, which makes it easier to manage the company's affairs.

Documents Required for OPC Registration :

To register an OPC, you will need to submit the following documents :

• Identity proof of the director, such as a PAN card or passport

• Address proof of the director, such as a utility bill or bank statement

• Passport size photograph of the director

• Memorandum of Association (MOA) and Articles of Association (AOA)

• Consent of the nominee

• Proof of registered office address, such as a utility bill or rent agreement

Overview

Stock audit is a crucial practice for businesses to ensure accurate accounting, efficient inventory management, and prevention of fraud or discrepancies related to stock or inventory. It involves a comprehensive examination of a company's physical stock or inventory, its valuation, and reconciliation with the financial records. In this blog, we will discuss the importance of stock audit, the process involved, and how businesses can seek assistance from professionals in conducting stock audits.

Follow the general instructions listed below while furnishing the digital signature application form:

• The signature of the applicant should be in blue ink only
• The signature of the applicant should be as it is in the Identity Proof
• A photo of the applicant in the application form should be signed by the applicant
• All supporting documents should be attested by either Gazetted Officer / Bank Manager / Post Master
• For proof of attesting officer, either one of the below is mandatory –
• Contact Details of Attesting Officer including the name, designation, office address, and contact number. This should be part of the attestation. If provided separately, it should be attested either by the Applicant or Attesting Officer
• Self-Attested copy of the Organizational Identity card of the Attesting Officer
• Organizational Documents can also be attested by Authorized Signatory. However, if the taxpayer fails to get the Organizational Documents attested by the authorized signatory, an attested copy of the organizational ID card of the authorized signatory is mandatory.

How Digital Signature work

Like handwritten signatures, digital signatures are unique to each signer. The providers of digital signing solutions, such as DocuSign, follow a specific protocol called Public Key Infrastructure (PKI). PKI requires the provider to use a mathematical algorithm to generate two long numbers called keys. One key is public, and one key is private.
When someone electronically signs a document, the signature is created using the signer’s private key, which is always securely kept by the signer. The mathematical algorithm acts as a cypher, creating data matching the signed document, called a hash, and encrypting that data. The resulting encrypted data is the digital signature. The signature is also marked with the time that the document was signed. If the document changes after signing, the digital signature is invalidated.
For instance, suppose that Jane signs a timeshare sale agreement with her private key. The buyer receives the document. A copy of Jane's public key is also sent to the document's purchaser. If the signature is not Jane's or the document has changed since it was signed, the public key will be unable to decrypt it using the cypher that produced the keys. The signature is then invalid. To ensure the integrity of the signature, PKI mandates that keys be generated, carried out, and stored securely. As a result, a reliable Certificate Authority (CA) is typically required. Companies that provide digital signatures, like DocuSign, address the PKI criteria for secure digital signatures.

Overview

What is an OPC?

An OPC is a type of business entity that can be formed with just one person as its shareholder and director. It was introduced by the Companies Act of 2013 to encourage small businesses and entrepreneurs to register their companies.

Step by Step Guide to OPC Registration

• Obtain Digital Signature Certificate (DSC) The first step in registering an OPC is to obtain a Digital Signature Certificate (DSC). A DSC is an electronic signature that is used to sign electronic documents, including the application for OPC registration. You can obtain a DSC from government-approved agencies.

• Obtain Director Identification Number (DIN) The next step is to obtain a Director Identification Number (DIN). A DIN is a unique identification number that is assigned to every director of a company. You can obtain a DIN by submitting an application to the Ministry of Corporate Affairs.

• Name Reservation The next step is to reserve a name for your company. You can do this by submitting an application to the Ministry of Corporate Affairs. The name you choose must be unique and should not be similar to the name of any existing company.

• File OPC Registration Once you have obtained your DSC, DIN, and name reservation, you can file your OPC registration with the Ministry of Corporate Affairs. You will need to submit various documents, including your DSC, DIN, and name reservation certificate.

• Get Certificate of Incorporation After your application has been processed, and your documents have been verified, you will receive a Certificate of Incorporation. This certificate confirms that your company has been registered as an OPC.