The Ministry of Corporate Affairs (MCA) has recently launched new form INC 29 for fast track registration of One Person Companies in India. It is a single form for incorporation of One Person Companies in India and all the different processes like getting DIN, Name Approval and submission of incorporation documents have been integrated in single form. A new One Person Company can be incorporated through this form within seven days. In this article we have discussed the process of fast track One Person Company formation and how is it different from normal One Person Company formation.
What is One Person Company?
One Person Company is ideal for those entrepreneurs who are confident that they can run their business alone but wants status of a Private Limited Company. A One Person Company enjoys status of a Private Limited Company, have separate legal entity, perpetual succession and transferability of business.
For incorporation of One Person Company there has to be a nominee Director. Nominee Director is nominated in the Memorandum and Articles of Association and becomes owner of One Person Company is the promoter is deceased. By nominating a Director, One Person Company ensures its perpetual succession. One Person Company is required to file its Annual Returns with MCA every year. If turnover of One Person Company exceeds 2 crores in any Financial Year, it has to convert itself to a Private Limited Company.
E Form INC 29
INC 29 was recently launched by the Ministry of Corporate Affairs (MCA). INC 29 is the single form for Incorporation of One Person Company. INC 29 has to be filed with all the documents required for incorporation of One Person Company, draft copy of Memorandum and Articles of Association etc. DIN of all the Directors who are not having DIN will be issued by filing this form. There is no need to make DIN Application separately.
Other than One Person Company, below-mentioned Companies can be incorporated through INC 29.
- Producer Companies
- Private Limited Company
- Limited Company
1. Digital Signature
Class II Digital Signature Certificate (DSC) is required for signing the forms for incorporation of a One Person Company.
To obtain Digital Signature Certificate (DSC), one passport size photograph and PAN Card is required along with one Address Proof and Signature on the DSC Application Form. The DSC Application Form and the supporting documents needs to be verified by a Bank Manager, Post Master or a Gazetted Officer. DSC form and all the supporting documents are to be signed with by pen with blue ink only.
All the documents for DIN and application for One Person Company incorporation are to be filed in E form INC 29.
DIN of the Director who is to be filed through INC 29. Following details and documents are required for DIN application of proposed Director.
- Full name (e.g. RAJESH MOHANLAL CHOUDHARI)
- Father’s full name (e.g. MOHANLAL KISHANLAL CHOUDHARI);
- Father’s full name is required in case of married woman also;
- Educational qualifications;
- Copy of PAN Card – if proposed Director is Indian national;
- Copy of Passport – if proposed Director is Foreign national;
- Email Address;
- Address proof (Bank Statement / Mobile Bill / Telephone Bill / Electricity Bill / Passport);
- Proof of Identity (Copy of Passport / Voter ID Card / Aadhar Card / Driver’s License).
Name approval is a very important part for the incorporation of One Person Company through form INC 29. Name application can be done with only one option. Therefore, it is very important to check and confirm availability of name before applying for the name. Click here to know more about how to name a Company. Incase proposed name is not accepted by MCA, INC 29 will be rejected and reapplication will have to be done after preparation of documents with a new proposed name. This may take more time and the purpose of fast track One Person Company formation may not be served.
Things to check before applying name of a One Person Company.
- The proposed name should be unique and it should not be identical or too nearly resemble with existing Company, LLP or Foreign Company.
- The proposed name should not be identical with any registered Trademark.
- Is the proposed name is a name of any person who has blood relation with promotor?
- Does any promotor carries any business in Partnership or Proprietorship with the same proposed name?
The following documents are to be prepared and signed by the proposed Director for submission to MCA with Form INC 29.
- Memorandum of Association
- Articles of Association
- Proof of Registered Office – whether Rented or Owned
- Affidavit by the subscriber
- Address proof of Registered Office and NOC from the owner.
- Any other specific documents required for incorporation.