In year 2014, with the applicability of The Companies Act, 2013 many new concepts have been introduced in the law and change has been brought in way of running the company in India. One such concept is One Person Company (OPC).
As the name suggest One Person Company (OPC) is a company where there is only one member. Lets us understand its other important aspects also.
As per Section 2 of the Companies Act, 2013 “One Person Company” means a company which has only one person as a member. Though it can have more than one Director but it can never have more than one member otherwise it will lose its status of One Person Company also it will lead to non-compliance with the provisions under The Companies Act, 2013 related to One Person Company (OPC).
The following documents are required to incorporate a One Person Company (OPC): –
Note that:- Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
The following is the procedure to incorporate a One Person Company (OPC):-
To register a One Person Company (OPC) in India it hardly takes seven (7) to ten (10) days once all the documents are completed.
The Ministry of Corporate Affairs has been always helpful in incorporating a company at earliest.
The departmental fees associated with incorporation of company is purely based on the authorized capital of proposed company. Hence, it varies from case to case.
No thing in this world comes with just advantages, here are some demerits also:-
A One Person Company can be converted into private or public company any time with some eligibility requirements. Also, if a One Person Company has paid up share capital that exceeds fifty (50) lakhs and the annual turnover is above two (2) crores, then it is obligatory for them to convert into a private limited company.
Disclaimer: – The above article is prepared keeping in mind various provisions relating to One Person Company (OPC) under the Companies Act, 2013 and rules made thereunder. The author has tried to cover all the important and basic question relating to incorporation of One Person Company (OPC). Under no circumstance, the author shall not liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.
(The Author is Corporate Consultant and provides varied array of services including Start-ups mentor, Secretarial, Legal, Trademark, taxation, Audit, GST, Book keeping and other ancillary advisory service in Delhi, Chandigarh as well as The National Capital Region (NCR) and can be contacted through email id:- firstname.lastname@example.org and Contact Number: 91-8178515005)