With a view to encourage entrepreneurship Companies Act 2013 introduced a new form of business structure termed as One Person Company, which provide platform to entrepreneurs and sole proprietors to start a business in a corporate framework.
As the name suggests one person company is a company registered with only one person as a shareholder/director. OPC is form of proprietorship firm which possess distinct features of a private limited i.e. it is a separate legal entity having perpetual succession and limited liability of its member .These companies avail various exemptions under Companies Act 2013, although the act compels conversion of OPC in private limited if capital of OPC exceeds 50 lakh rupees.
One shareholder and one director is required, although maximum 15 directors can be appointed in an OPC. The sole director can be the sole shareholder himself and such sole person is required to be a Indian citizen/resident.
To start OPC in India Minor, Foreign National, Overseas Citizen of India and Non Resident Indian and Company/LLP/Body Corporate are not eligible.
One person companies have perpetual succession therefore it has uninterrupted existence even on insolvency of its shareholder, on account of death of sole shareholder the nominee person act on his behalf. Existence of OPC ends only when the company is legally dissolved.
Unlike Private limited Companies , OPC is not bound under the Companies Act 2013 to conduct Annual general meeting or extra ordinary general meeting, Thus for any business which is required to be transacted at an annual general meeting shall be transacted at a board meeting and such matters transacted are required to be entered in the minutes book.
In One Person Company the single director/share holder has complete control over the management of the company, unlike private limited company where minimum 2 director/shareholder are required and the controlling interest is divided among these two director/shareholder.
One person company to lose its status and is required to convert as a private limited company when its paid up capital exceeds Rs.50 lakhs or average annual turnover is more than 2 crores in three immediate preceding consecutive years.
Obtaining DSC is the first and foremost step while incorporating private limited company and it can be applied online through any of the authorised dealers. Application for DIN is filled through online mode in prescribed Form DIR-3 based on the information of the applicant and is to be submitted before the Ministry of Corporate Affairs website i.e. www.mca.gov.in along with the requisite documents of the applicant and prescribed fees.
Application for reservation of the name for the proposed company is required to be filed online in prescribed Form INC-1 along with minimum one and maximum six proposed name in order of preference and is to be submitted before the Ministry of Corporate Affairs website i.e. www.mca.gov.in by paying the prescribed fees.
Incorporation documents Such as Memorandum of association (MOA) and Articles of association (AOA) along with several/various declaration from directors/members are drafted and filled before the registrar in Form- INC-2 along with the prescribe fees and stamp duty as prescribe rates of Government.
After due scrutiny and verification of documents submitted by the applicant, the ROC will issue certificate of Incorporation if everything goes fine otherwise requirement of resubmission would be raised up. The time period in receiving Certificate of Incorporation may vary and depending on the location and other factors.
Minimum requirement: • One person, who should be a Indian resident and not an Foreign national or NRI. • Valid proofs have to be obtained by the person, who is going to start the company. • Valid proof for the registered office of the company.
Nominee should be any Resident of India. The term \"resident in India\" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
An address in India where the registered office of the One Person Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.
Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member. The Director or Nominee must also be over 18 years of age. A person can incorporate up to five One Person Companies.
No, a Indian resident can only become Member/director of OPC else, Foreign National, Overseas Citizen of India, Non Resident Indian, Company/LLP/Body Corporate are not eligible to incorporate a One Person Company
A one person company has only one director/ shareholder, in case of death / incapacity of such sole director/shareholder the nominee person becomes the shareholder of the company. A nominee has to be a resident Indian citizen. A nominee is a next of kin for an OPC. A nominee becomes the shareholder in case of death / incapacity for the original share holder. A nominee has to be a resident Indian citizen.
To incorporate a One Person Company, a Director and a nominee is required. A nominee member is one, who shall, in the event of promoter member\'s death or incapacitation become a member of the Company.
Yes, a One Person Company converts itself into a Private Limited Company in following manner- Voluntary conversion When a One Person Company gets incorporated, it cannot convert itself to Private or Public company for a period of not less than two years from the date of incorporation. Means if you want to get converted voluntarily you have to wait for two years to over Compulsory Conversion When a One Person Company has a paid-up capital more or equal to Rs.50 lakhs or, the Annual turnover for the relevant financial year exceeds Rs.2 crore, then in such conditions, the company has to compulsorily convert itself into Private Limited Company or Public Limited Company.
Documents Required For Incorporating One Person Company Documents required from Directors/Promoters/Shareholders
Documents for Registered Office of Company