One Person Company
One Person Company (OPC) is a type of company that can be formed with only one person as its member or shareholder. It introduce in the Companies Act, 2013 to encourage small business owners and entrepreneurs to start their own companies with limited liability protection.
A OPC has a separate legal identity from its owner and treat as a separate legal entity. This means that the liability of the owner limit to the extent of the share capital subscribed to by the owner. This provides a significant advantage to the owner in terms of limited liability protection.
An OPC require to have a nominee director who can act as a member in case of death, incapacity or absence of the owner. The nominee director does not have any ownership rights and is only a director of the company.
For more information visit this site: https://www.mca.gov.in
Therefore, OPCs require to comply with the same legal and regulatory requirements as any other type of companies, such as filing annual returns and maintaining proper accounts. OPCs also require to be converted into a private limited company if the annual turnover exceeds Rs. If the paid-up capital of a company exceeds Rs. 2 crores, 50 lakhs.
FAQs:
- What is a One Person Company (OPC)?
A One Person Company is a company that has only one shareholder and allows an individual to start a business with limited liability protection. - Who can form a One Person Company?
Only an individual who is an Indian citizen and resident in India can form an OPC. - Can an OPC have more than one director?
Yes, while an OPC can have only one shareholder, it can appoint up to 15 directors. - What is the minimum capital requirement to start an OPC?
There is no mandatory minimum capital requirement for starting an OPC. - Is an OPC required to hold Annual General Meetings (AGM)?
No, an OPC is exempt from holding AGMs. - Can an OPC carry out any business activity?
Yes, an OPC can carry out most business activities, except non-banking financial investment activities. - What happens if the sole shareholder of an OPC dies?
The nominee appointed at the time of incorporation will take over the ownership of the OPC. - Is the compliance burden high for an OPC?
The compliance requirements for an OPC are less stringent compare to other forms of companies like Private or Public Limited Companies. - Can an OPC be convert into a Public Ltd Company?
No, an OPC cannot be directly convert into a Public Ltd Company. It must first convert into a Private Limited Company.
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