The Concept of One Person Company

Posted by enterslice on May 24th, 2018

One Person Company Registration

The concept of One Person Company is a new concept introduced in Companies Act; 2013. The concept is prevailing in India Only. The process of carrying forward the business in the form Of OPC Company Registration is beneficial for those persons who don’t find any partner to help them in building their business. One Person Company has perpetual Succession and legal & distinct entity.

In terms of the definition “One Person Company” is a company which can be registered only with the one person as a member. That person can itself act as a director as well as a shareholder of the company.

For a better understanding it is a form of Private limited but still there ascertain differences between them as discussed below:

OPC

Private Limited Company

Required only one person as Director and Shareholder

More than one person as Director and Shareholder

At the end of the company name need to affix OPC

In this case need to affix  Private Limited with its name

For these company accounting procedure is a

In this case it is complex along lot of compliances need to be complied

Minimum number of required director is one

In this case minimum number of director is 2

 

Advantages of Pursuing Business as an OPC Company

Minimum Requirements to Comply For OPC Company Registration

  • Minimum One Director and Sharholder (both  can be a same person)
  • Atlest  one board meeting is required to hold in each half year of calender year with a minimum 90 days gap between any 2 meetings
  • Minimum Share Capital should be Rs.100,000
  • Director Identification Number
  • Digital Signature

Thinks to Be Taken Up/Consider Before Incorporating an OPC

  • Only an Individual Person is eligible to become a member and nominee in respect of that member
  • And that member should be resident only
  • Opc can be registered either as Limited by shares, guarantee or an unlimited company
  • Not allowed to perform any Non- Banking Financial Investment activities
  • It is mandatory to have average annual turnover of Rs. 2 crore in the immediately preeceding three financial years.
  • OPC company can be registered only as an Private Limited Company

Note: Resident means should stay in India for not less than 182 days in that year

Contractual Relation with OPC

In case if the member and who himself is also the director of the said OPC entered into any contract with the OPC, then it is compulsory to mention such detail in the memorandum and must be intimated to the registrar within 156 days of entering into such contract.

The concept of Nominee in Respect of One Person Company Registration

When any person is deciding to start its business in the form OPC, then in the concept of OPC Registration then it is mandatory for a member to appoint nominee in respect of himself. The nominee should be a natural person. The nominee is obliged to become member of the company in the event of the death of the member and in the event of incapacitated to contract.

Conclusion

In order to conclude as a start-up of a business, it is a new and beneficial concept without any legal binding to carry on their person. An interested person who is thinking about OPC registration may raise their query on info@enterslice.com.

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