KNOW ONE PERSON COMPANY (“OPC”)
One person company is a unique concept introduced by the ministry of corporate affairs in order to encourage the small traders and entrepreneurs. With passage of time, the opc mode of business organisation is all set to become the most preferred form of business organization especially for small entrepreneurs. The one person company concept holds a bright future for small traders, entrepreneurs with low risk taking capacity, artisans and other service providers.
ADVANTAGE OF ONE PERSON COMPANY
Only a natural person, who is an Indian citizen and resident in India, shall be eligible to incorporate a One Person Company.
OPC must have a minimum of 1 Director; the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15 directors.
One Person Company also gets freedom from complying with many requirements as normally applicable to other private limited Companies.
· Separate Legal Entity: One Person Company is a legal entity separate from its members.
· Limited Liability.: In a Sole Proprietorship firm, the personal assets of the proprietor can be at risk in the event of failure, but this is not the case for a One Person Private Limited Company, as the shareholder liability is limited to his shareholding.
· Legal Status: The structure of OPC is that similar to Private Limited Company. Hence OPC also enjoys the corporate status which helps the entrepreneur to attract quality workforce and helps to retain them by giving corporate designations, like directorship.
· Free Compliances: OPC form of company is very easy to manage. Only few filings are to be made with ROC and they are exempted from conducted Annual General Meeting. The Board Meetings can be conducted for every six months.
5-15 days (Subject to ROC Response) after receipt of all the necessary Documents, The breakup of the Number of days is as follows
|Taking Digital Signature of Directors||1-2 Day|
|Taking Directors Identification Number (DIN)||1 Day|
|Reservation of the name of the Company||0-3 Days|
|Preparation of other documents such as MOA,AOA, Forms etc||0-1 Days|
|Filling of documents with Authorities||0-1 Day|
|Getting Final Certificate of Incorporation||3-7 Days|
|Total Number of Days||5-15 Days|
DOCUMENTS REQUIRED FOR ONE PERSON COMPANY
INFORMATION REQUIRED WITH REGARD TO ONE PERSON COMPANY
WHAT YOU GET
Q1. What is One Person Company?
One Person Company a new company structure, contains the benefits of sole proprietorship and corporate status. It has only one member, as the Member cum Director and a nominee.
Q2. How can register a One Person Company?
One Person Company can be registered like Private Limited Company, where all the rules and regulation are laid down by the Ministry of Corporate Affairs.
Q3. How much capital do I invest to start a One Person Company?
The minimum capital requirement is Rs. 1,00,000/- but this amount differ from your investment. Authorized capital and investment are not one and the same. You can invest as many as you can, but when you want to incorporate a company legally, it has to be started with Rs. One lakh as capital.
Q4. How many Directors can we have in One Person Company?
A minimum of 1 is required while starting a One Person Company, but you can have up to 15 Directors for your OPC.
Q5. Who can be a nominee for a One Person Company?
Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.
Q6. Who is Director of a Company?
A Director is the person who manages and control the affairs of the company. A Director is the brain of a Company. They occupy a pivotal position in the structure of the company. Directors take the decision regarding the management of a company collectively in their meetings known as Board Meetings.
Q7. How can I change a nominee for my company?
A Nominee can be changed with the proper intimation and filing of necessary forms with Registrar of Companies
Q8. Can Foreign Direct Investment allowed for One Person Company?
No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.
Q9. Who cannot form a One Person Company?
A Minor, Foreign citizen, Indian Non resident, a person incapacitate to contract are restricted from Forming a One Person Company.
Q10. Can a One Person Company converted into Private Limited Company?
Yes, it can be converted into Private Limited Company, if the One Person Company has exceeded the threshold limit by filing necessary forms.
Q11. How can a One Person Company converts itself into Private Limited Company?
One Person company can convert itself to Private Company, when the paid up capital exceeds Rs. 50 lacs or its average turnover exceeds Rs. 2 crores for the relevant period.
Q12. How many types of OPC are there?
There are 3 types of OPC’s :–
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