What are the benefits of incorporating a One Person Company in Chennai
A One Person Company is a company with only one shareholder. It is a separate legal entity from its shareholders, meaning it can enter into contracts, own property, and incur debts and liabilities in its own name. The liability of the shareholder is limited to their investment in the company.
One Person Companies are relatively easy and inexpensive to set up and maintain when compared to other types of business entities. They also offer some flexibility in terms of compliance with government regulations. For example, One Person Companies are not required to hold annual general meetings or prepare audited financial statements.
Who can incorporate a One Person Company in Chennai
Any individual who is a resident of India and aged 18 years or older can incorporate a One Person Company. The individual must also have a valid PAN (Permanent Account Number) issued by the Income Tax Department.
What are the features of a One Person Company in Chennai
Some of the key features of a One Person Company in Chennai are as follows:
- It must have only one shareholder
- It must have only one director
- The minimum paid-up capital requirement is INR 1 lakh
- It must have a DIN (Director Identification Number)
- It must obtain approval from RBI (Reserve Bank of India) for foreign investment
- It must have a registered office in India
How to incorporate a One Person Company in in Chennai
The steps involved in incorporating a One Person Company in Chennai
Incorporating a One Person Company in Chennai requires the following steps:
- Obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA).
- Apply for a name registration with the MCA.
- Draft the Memorandum and Articles of Association of the company.
- File the incorporation documents with the MCA along with the prescribed fees.
- Obtain the Certificate of Incorporation from the MCA.
The documents required for incorporation
The following documents are required for incorporating a One Person Company in Chennai:
- Duly filled and signed Form INC-7 along with the application for DIN;
- Memorandum of Association;
- Article of Association;
- Affidavit and Declaration as per Annexure I to Regulation 7 of The Companies (Incorporation) Regulations, 2014 ;
- PAN Card / Passport / Voter's ID card / Driving License issued in India as proof of identity of the subscriber to MOA and AOA;
- Address Proof - any one out of passport/bank account statement/telephone or mobile bill/electricity or gas bill not older than two months old, duly attested by a Gazetted Officer or Notary Public, containing self-attested photograph and residential address;
- Photographs - three recent passport size photographs of each director duly self-attested;
- Details of other directorships held by him, if any - annexed with Form DIR-3 KYC
- No Objection Certificate(NOC), if he is already holding any other directorship in any other company(ies)
- "Specimen signature" in black ink on white paper duly self-attested by him
- "Proofof residence" as mentioned at Sl no.(f);
- "Proofof appointment" as director such as Board Resolution or Letter of Appointment executed on non-judicial stamp paper or electronically signed document, wherever allowed u/s 4A(1)(b);
- "Any other information", which may be prescribed by rules from time to time."
The registered office of a One Person Company in Chennai
A One Person Company in Chennai must have a registered office within fifteen days from the date on which it is incorporated under section 12(6).
The regulations and compliances for a One Person Company in Chennai
The financial statements of a One Person Company in Chennai must give a true and fair view of the state of affairs of the company as at the end of the financial year and of the profit or loss for that year.
They must comply with the accounting standards prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.
The Balance Sheet, Statement of Profit and Loss, and Statement of Cash Flows shall be in Form AOC-1 annexed to these rules.
The Notes to Accounts shall be presented in Form AOC-2 annexed to these rules.
In case where any item is required by Accounting Standards but is not specifically dealt with in Form AOC-1 or 2, such item shall be disclosed separately under appropriate headings in Form AOC-1 or 2.
The annual return of a One Person Company in Chennai
Every One Person Company in Chennai shall file with the Registrar in Form MGT - 7 within sixty days from the closure of its financial year, an annual return containing particulars as prescribed in sub - section (3) read with section 92 which shall be verified by a company secretary or where there is no company secretary, by any director of the company.]]
The annual return shall contain the following particulars:
(i) the registered office of the company;
(ii) the principal business activities of the company indicating the codes as prescribed under the Companies (Indian Accounting Standards) Rules, 2015;
(iii) the names, addresses, and occupations of the directors of the company;
(iv) the share capital of the company;
(v) details of contracts or arrangements entered into by the company with any director or body corporate in which a director is interested; and
(vi) such other particulars as may be prescribed.
A One Person Company in Chennai is a great way to start a business in India. The benefits of incorporating a One Person Company in Chennai are numerous, and it is relatively easy to do so. There are some important regulations and compliances that need to be followed, but overall, a One Person Company in Chennai is a great option for starting a business in India.
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