Statutory company
Statutory company: OPC (One Person Company) is not a statutory company. OPC refers to a type of business structure or legal entity recognized in certain jurisdictions, including India. It is a form of company where a single individual can establish a separate legal entity and enjoy limited liability protection similar to a private limited company.
In India, the concept of OPC was introduce through the Companies Act, 2013. It allows a sole proprietor or entrepreneur to register a company with only one member as its shareholder and director.
The key features of OPC in India include:
Single Shareholder:
An OPC can have only one shareholder, who is the sole owner of the company’s shares.
Limited Liability:
The liability of the shareholder is limited to the extent of their capital contribution, protecting their personal assets in case of business debts or liabilities.
Single Director:
An OPC can have a single director, who can also be the shareholder. However, there can be a maximum of 15 directors in total.
Nominee Director:
An OPC is require to nominate a person as a nominee director who will take over the management of the company in case of the sole director’s incapacitation or death.
No Minimum Capital Requirement:
There is no minimum capital requirement for an OPC in India. The capital can be as per the business requirements.
Conversion:
An OPC can be convert into a private limited company if certain conditions are met, such as reaching a certain turnover threshold or exceeding the maximum paid-up capital limit.
It’s important to note that the regulations and requirements for OPC may vary in different countries. Therefore, it is advisable to consult with a legal professional or company formation expert in your specific jurisdiction to understand the specific rules and regulations governing OPC in your location.
To visit: https://www.mca.gov.in/
FAQs
1.What is an OPC?
Answer: An OPC is a One Person Company, a business structure that allows a single individual to operate a company.
2. Is OPC a statutory company?
Answer: Yes, an OPC is considered a statutory company as it is formed under the Companies Act, 2013 in India.
3. What does “statutory company” mean?
Answer: A statutory company is a company created by a specific law or statute, which outlines its structure and operations.
4. Who can form an OPC?
Answer: Any Indian citizen who is at least 18 years old can form an OPC, provided they are not disqualified by any law.
5. What are the benefits of an OPC?
Answer: Benefits include limited liability, complete control by the owner, and easier compliance requirements compared to other company types.
6. Is an OPC required to have a minimum capital?
Answer: Yes, there is no specified minimum capital requirement for an OPC, but it should have sufficient capital to meet its operational needs.
7. Can an OPC have more than one member?
Answer: No, an OPC can only have one member. If the number of members exceeds one, it must convert to a different type of company.
8. Is there any restriction on the turnover of an OPC?
Answer: Yes, an OPC must have an annual turnover of less than ₹2 crores to maintain its status as an OPC.
9. What happens if an OPC exceeds the turnover limit?
Answer: If the turnover exceeds ₹2 crores, the OPC must convert into a private or public company within six months.
10. Are there any filing requirements for OPCs?
Answer: Yes, OPCs must file annual returns and financial statements with the Registrar of Companies, just like other types of companies.
