Company registration is a pivotal step for any business, providing protection, limited liability, and fostering growth. In India, the concept of ‘One Person Company’ (OPC) emerged under the Companies Act 2013, allowing a single individual to form a company with reduced compliance compared to private companies. This article outlines the essential documents required for OPC registration.
Prerequisites for OPC Registration
Before initiating OPC registration, ensure a minimum of one person is involved, complying with the Companies Act, 2013. A single individual can serve as both director and member but limited to one OPC. One director must be an Indian resident, and the minimum authorized and subscribed share capital is Rs. 1 lakh. The chosen name must be unique and distinguishable.
Documentary Requirements
Digital Signature Certificate (DSC): Obtain a DSC, crucial for registration. Authorized agencies appointed by the Controller of Certification Agencies issue DSCs with a validity of one or two years. Ensure DSC validity or apply for a new one before registration.
Director Identification Number (DIN): Apply for DIN in the SPICe Form, including the proposed director’s name and address proof.
Company Name Approval: Submit Form SPICe+ 32 to get the company name approved. Only one preferred name can be provided, along with its significance. If rejected, reapply with another name.
Documents for ROC Submission: After MCA approval of the company name, the following documents need to be submitted to the Registrar of Companies (ROC):
Memorandum of Association (MOA)
Articles of Association (AOA)
Affidavit and consent of the proposed director
PAN card and address proof of the director
Address proof of the registered office
With these documents in order, the OPC registration process can proceed seamlessly, offering a legal framework for the business.
A Digital Signature Certificate (DSC) is a specialized form of digital certificate issued by licensed Certifying Authorities (CAs) in India, adhering to the Information Technology Act, 2000. Governed by the Controller of Certifying Authorities (CCA), DSCs serve as legally recognized digital signatures, ensuring the authenticity, integrity, and security of electronic transactions and documents within the country.
Types and Usage of DSCs
DSCs are categorized into different classes, with Class 2 and Class 3 being prominent. Class 2 DSCs verify individuals against a trusted database, while Class 3 DSCs require in-person verification by a Registration Authority (RA). Although Class 1 DSCs only validate the name and email address, they are no longer available as of 2021. DSCs find extensive application in electronic transactions, including filing tax returns, GST submissions, digital document signing during company incorporation, online tendering, and various financial activities.
Navigate to the Digital Certification Services section and choose the ‘organization’ option.
Download the registration form, providing details such as Class of DSC (Class 3), applicant information, address, GST details, identity proofs, and a signed declaration.
Prepare a demand draft (DD) or cheque payable to the local certifying authority.
Submit the application along with the payment to the authority; DSC is typically issued within around five days.
Cost and Validity
The cost of a DSC varies, ranging from approximately Rs 300 to Rs 2,000, depending on the certifying authority and the validity period, which can be one or two years.
In recent years, general insurance companies have faced profit challenges due to significant natural calamities impacting regions like Tamil Nadu, Jammu & Kashmir, and Cyclone Hud-Hud. To bolster awareness around householder and shopkeepers’ insurance, the general insurance industry is urging the government to consider tax exemptions for premiums associated with these policies.
Current Tax Exemptions and Industry Proposal
Presently, only premiums for life insurance and health insurance enjoy exemptions under Sections 80C and 80D of the Income Tax Act. The industry contends that extending tax exemptions to householder and shopkeepers’ insurance premiums would be advantageous for all stakeholders. Insurance companies typically allocate 12-15% of premiums to home and shopkeepers’ policies, but low premiums result in limited earnings for agents.
Industry Impact and Claims Scenario
Over the last three years, general insurers have faced claims surpassing Rs 10,000-12,000 crore due to various catastrophic events. Following recent floods in Tamil Nadu, claims have already reached Rs 3,000-3,500 crore. The industry is looking to increase awareness and renewals for home and shopkeeper insurance products.
Industry Voices and Recommendations
KG Krishnamoorthy Rao, MD and CEO of Future Generali India Insurance, emphasizes the importance of home insurance, particularly as a crucial financial asset. He recommends granting tax exemptions on home insurance premiums in the upcoming budget. Sasikumar Adidamu, Chief Technical Officer at Bajaj Allianz General Insurance, supports the idea of tax incentives to boost overall insurance penetration, considering the low coverage during major catastrophic events.
High net-worth individuals (HNIs) in India are increasingly prioritizing comprehensive protection for themselves and their dependents through substantial term insurance coverage. The preferred term cover amount among HNIs is Rs 1.75 crore, with insurers offering tailor-made policies designed to cater to wealth preservation and legacy security needs.
Affordability and Extensive Coverage
Term insurance in India stands out for its affordability, offering substantial coverage at a cost-effective premium. Monthly premiums for significant coverage, such as Rs 5 crore, typically range from Rs 3,000 to Rs 3,500, making it an attractive option for HNIs looking to ensure robust life coverage without compromising on financial considerations.
Impact of Tele-Medical Check-ups on NRI Interest
The introduction of tele-medical check-ups has led to a threefold surge in Non-Resident Indians (NRIs) purchasing term insurance with considerable coverage. Enhanced accessibility and a streamlined customer experience have contributed to this surge, with 75% of NRI customers identified as HNIs, according to a Policybazaar study.
Industry Response to HNI Needs
Insurance providers are addressing the substantial financial commitments and assets associated with HNIs by offering coverage options up to Rs 20 crore. This comprehensive approach aims to empower HNIs in effectively managing their financial risks, making term insurance a preferred choice in this demographic.
Key Considerations for HNIs
HNIs are advised to secure a sufficient life cover that sustains their family’s current lifestyle and fulfills future commitments. While some may consider their current assets as substitutes for term insurance, experts caution against this approach, emphasizing the need to account for outstanding liabilities, potential inflation, and future responsibilities.
Coverage Duration and Rider Enhancements
HNIs can opt for coverage until retirement (60-65 years) or extended coverage (up to 75 or 80 years) to align with major financial obligations or leave a substantial legacy. Additionally, riders such as waiver of premium on critical illness/disability and custom options for estate planning and wealth transfer enhance the safety net, providing comprehensive coverage tailored to financial objectives.
In the scenario where pledged jewelry is auctioned by the bank to recover outstanding loan amounts, it’s essential to note that long-term capital gains (LTCG) may arise for your wife. The consideration indirectly received from the auction triggers this liability. Section 55 of the Income Tax Act, 1961, stipulates that the fair market value of the jewelry as of April 1, 2001, may be considered as its cost of acquisition when calculating capital gains.
NRI Tax Filings: Mandatory or Conditional?
According to Section 139 of the Income Tax Act, NRIs aren’t obligated to file income tax returns in India if they haven’t earned any income within the country. However, specific conditions and thresholds outlined in Rule 12AB of the Income-Tax Rules, 1962 may necessitate filing, particularly concerning deposits, expenditures, and other prescribed conditions.
Calculating LTCG on Flat Sale: Dates, Costs, and Exemptions
When selling a flat, the calculation of long-term capital gains (LTCG) is anchored in the date of transferring the property, typically the date of registering the sales deed. The possession date may be relevant if transferred before the deed registration. Deductible from the sale consideration are expenditures exclusively for the transfer, indexed cost of acquisition, and indexed cost of improvement. Section 54EC provides an avenue to potentially avoid LTCG tax by investing the full amount in NHAI bonds within six months of the property transfer. It’s important to note that these bonds should not be transferred within a five-year period to avail of the exemption, with a maximum investment limit of ₹50 lakh.
The Central Board of Direct Taxes (CBDT) recently introduced significant amendments to Rule 11UA through Notification No. 81/2023, impacting the valuation procedures for investments in closely held companies. These changes, effective from September 25, 2023, are pivotal in determining the applicability of Angel Tax to start-ups, encompassing excess share application money or premium received from non-resident investors.
A noteworthy adjustment includes the extension of Angel Tax to cover excess share application money or premium received from non-resident investors. This shift underscores the importance of carefully evaluating the fair market value (FMV) of unlisted equity shares and convertible preference shares (CCPS) to avoid tax implications.
The revised Rule 11UA offers a comprehensive framework for assessing FMV, departing from the earlier focus on only two methods. Now, the valuation landscape includes five additional approaches for determining the FMV of unlisted equity shares and CCPS, providing more nuanced and accurate assessments.
Benchmarking Innovations: VC Funds, Notified Entities, and More
Introducing benchmarking with shares issued to Venture Capital (VC) Funds, VC Companies, Specified Funds, and Notified Entities, the regulatory update offers alternative reference points for determining FMV. This innovative approach aligns with the diverse nature of investments and enhances the accuracy of valuation methods.
Ensuring Currency and Safe Harbor Limits
Recognizing the dynamic nature of valuation, the revised rules mandate that Merchant Banker reports should not be older than 90 days, ensuring the relevance and accuracy of the valuation process. Additionally, a safe harbor limit of 10% provides a threshold for unquoted equity shares or CCPS issuance, offering a buffer to accommodate minor disparities between the issue price and FMV.
Strategic Considerations for Unlisted Companies
Unlisted companies now face a nuanced valuation landscape, necessitating careful consideration of the methods and benchmarks that best align with their circumstances. These changes aim to streamline the valuation process, promoting transparency, and ensuring fair assessments in compliance with the revised regulatory framework.
Burn house, flaming building. Insurance agent and customer flat characters. Fire insurance, fire economic losses, protect your property concept. Bright vibrant violet vector isolated illustration
Expanding the adoption of fire insurance for homes and small businesses requires a strategic approach. Simplifying products to be both easily comprehensible and attractively priced is pivotal in encouraging widespread acceptance of insurance coverage.
Assessing Risk Dynamics: Severity vs. Incidence
The choice between insuring 100 warehouses with inflammable chemicals in 100 drums each or a single warehouse with 10,000 drums involves weighing severity risk against claim incidence risk. IRDAI’s recent regulatory move recognizes these distinct risk profiles and has introduced specialized fire insurance products for homes and small businesses.
Revamping Regulatory Framework
Previously governed by the All India Fire Tariff, 2001, fire insurance products are now undergoing a transformative shift. Effective April 1, 2021, dwellings and commercial risks below Rs 50 crore in sum assured are excluded from the tariff. Instead, they fall under three standardized products: one for dwellings, another for commercial risks up to Rs 5 crores in sum assured, and the third for risks between Rs 5 and 50 crore. This regulatory evolution simplifies products, ensuring a streamlined claims process, while allowing insurers to differentiate their offerings through up to three add-ons.
Tailored Solutions for Hassle-Free Coverage
The new standardized products are designed to cater specifically to the needs of homes and small businesses. By moving away from a one-size-fits-all approach, insurers can now offer customized solutions, fostering a more inclusive and responsive fire insurance landscape.
In a significant move, Delhi Chief Minister Arvind Kejriwal has granted approval for an additional 83 shops and commercial establishments in the city to operate round the clock. Pending approval from the lieutenant governor, these businesses are poised to join the existing 635 establishments operating 24 hours, marking a substantial increase in the city’s vibrant economic landscape.
Government Oversight for Compliance
The government asserts its commitment to closely monitor these establishments, ensuring strict adherence to regulations. Stringent actions will be taken against any violations to maintain a balance between economic growth and regulatory compliance. This proactive approach aims to foster a business-friendly environment while upholding standards.
Economic Boost and Employment Opportunities
The decision to extend operational hours is not only anticipated to bolster the local economy but also to generate fresh employment opportunities, particularly for the youth. By allowing businesses to function around the clock, the government envisions a positive impact on job creation and economic development.
Delhi Shops and Establishment Act: Streamlined Application Process
Under the purview of the Delhi Shops and Establishment Act, 122 individuals expressed their keen interest in running businesses 24 hours a day. The city’s labor department diligently examined the applications and associated documents, ensuring a streamlined process in accordance with regulatory requirements.
This strategic move by the Delhi government underscores its commitment to fostering a dynamic and thriving business environment, aligning with the changing demands and preferences of the city’s residents.
Family insurance – cartoon people standing near giant contract document with text under big umbrella. Parents and children protection – flat isolated vector illustration.
High net-worth individuals (HNIs) in India are increasingly prioritizing comprehensive protection for themselves and their dependents through customized term insurance plans. Life insurers are responding to this demand by offering tailored policies designed to safeguard wealth and ensure legacy security.
Affordability and Significant Coverage
One key factor contributing to the popularity of term insurance among HNIs is its affordability, coupled with substantial coverage. Despite offering coverage amounts as high as Rs 5 crore, monthly premiums often range from Rs 3,000 to Rs 3,500. This cost-effective approach has led to HNIs accounting for 25% of the term insurance business in FY23, with Rs 1.75 crore being the most preferred cover amount.
Impact of Tele-Medical Check-Ups
The introduction of tele-medical check-ups has played a pivotal role in a threefold surge in NRIs purchasing term insurance with considerable coverage. The enhanced accessibility provided by tele-medical check-ups has significantly improved the customer experience, with 75% of NRI customers identified as HNIs.
Industry Response and Coverage Options
Insurance industry leaders, such as Rhishabh Garg from Policybazaar.com, highlight the industry’s responsiveness by offering coverage options up to Rs 20 crore. Garg emphasizes that affordability, coupled with expansive coverage, has positioned term insurance as the preferred choice among HNIs, allowing them to manage financial risks effectively.
Factors Driving HNI Interest
Increased awareness of financial security and the desire for comprehensive coverage and tax benefits are driving the growing interest in term insurance among HNIs. The evolving market landscape and competitive offerings that cater to specific needs further fuel this upward trend.
Strategic Considerations for HNIs
HNIs are advised to consider factors such as outstanding liabilities, potential inflation, and upcoming financial responsibilities like a child’s education or marriage when purchasing term insurance. Coverage duration options, ranging from retirement age to extended coverage, allow HNIs to align their life insurance plans with their financial goals.
Riders Enhancing the Safety Net
Customized riders, such as the waiver of premium on critical illness/disability rider, play a crucial role in enhancing the safety net. These riders exempt future premium payments in the event of critical illness or disability, ensuring the life cover remains intact. Riders tailored for estate planning and wealth transfer, such as wealth creation or legacy planning riders, contribute to comprehensive coverage aligned with financial objectives.
The Government eMarketplace (GeM) has witnessed a remarkable surge in services procurement, reflecting an impressive 7.7x growth in transaction value from FY21 to FY23. The commerce ministry reports a substantial increase, with the transaction value soaring from Rs 8,505 crore in FY21 to an impressive Rs 65,957 crore in FY23. This surge has significantly elevated the overall contribution to GeM Gross Merchandise Value, accounting for nearly 47% in the current financial year compared to 23% in FY21-22.
Diverse Service Contracts:
Among the diverse array of services procured, hiring manpower services took the lead, with around 40,000 contracts placed in FY23, accumulating a total contract value exceeding Rs 14,000 crore. Similarly, vehicle hiring services saw 30,000 contracts with a contract value surpassing Rs 2,900 crore during the same fiscal year.
Strategic Orders:
Notable entities such as Coal India and the Gujarat government have played a significant role in this surge. Coal India alone placed approximately 175 orders valued at Rs 24,558 crore for handling, transport, and other mining activities. The Gujarat government, in alignment with Pradhan Mantri Jan Arogya Yojana, secured group mediclaim insurance services worth Rs 2,302 crore, extending health coverage to nearly 62 lakh families.
Diverse Service Categories on GeM:
GeM, with its 311 service categories, has become a hub for various services, ranging from chartered aircraft and air international logistics to drone services for surveying and aerial mapping. High-value service bids, including the hiring, operations, and management of ATMs, energy audit services, and GIS surveys with drone mapping, showcase the platform’s versatility and expansive reach in facilitating diverse procurement needs.
