One Person Company Registration
One person company is a private limited company which can be formed by one person alone. However another person is required as nominee. this is a new concept introduced by the companies act 2013 and is available for a business with a capital up to Rs. 50 Lacs and a turnover upto Rs. 2 crore.The one person company has some benefits in the companies act in terms of non applicability of some provisions of the new act. However the moment turnover increases beyond Rs. 2 crores or the capital crosses 50 lacs the one person company shall be required to be converted as a private limited company.
Though a One Person Entity allows a lone Entrepreneur to run a business with Limited Liability protection, a OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA or AOA who will become the owner of the OPC in case the promoter Director is disabled. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation.
What is a one person Company ?
This is a private limited company with limit n capital to be introduced only uptoRs. 50 Lac and where the total turnover need to be limited to Rs. 2 crore only. A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company's bylaws or regulations and are meant to prevent any hostile takeover attempt. As the name suggests only one person can be member of this type of company. A company is considered as a separate legal entity, with perpetual succession, wherein liability of shareholder is limited to the capital being contributed by him. Hence, a shareholder is not personally liable for the debts of the company.
What is a one person Company ?
This is a private limited company with limit n capital to be introduced only uptoRs. 50 Lac and where the total turnover need to be limited to Rs. 2 crore only. A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company's bylaws or regulations and are meant to prevent any hostile takeover attempt. As the name suggests only one person can be member of this type of company. A company is considered as a separate legal entity, with perpetual succession, wherein liability of shareholder is limited to the capital being contributed by him. Hence, a shareholder is not personally liable for the debts of the company.
How many people are required to incorporate a One Person Company?
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.
What are the requirements to be a Director or Nominee in a OPC?
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 upto five One Person Companies.
What is the capital required to start a One Person Company?
One Person Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the OPC. There is no requirement to show proof of capital invested during the incorporation process.
Is an office required for starting a One Person Company?
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.
How long will it take to incorporate a One Person Company?
BMS can incorporate a One Person Company in 7-15 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.
What do I need to quickly incorporate my One Person Company?
To incorporate a One Person Company quickly, make sure the proposed name of the Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.
A person can be a member in how many OPCs?
A person can be member in only one OPC.
Is there any form that is to be filed for conversion of an OPC into private or public company? Is there any other purpose for filing this form?
Form INC-6 shall be filed by an OPC for conversion of an OPC into private or public company. Yes, the private company will also file form INC-6 for converting itself into an OPC. The paid up share capital of private company should not be exceeding fifty lakh rupees and should not have average annual turnover more than two crore rupees at the time of such conversion into OPC. The company shall be having one member and shall appoint one nominee to act as member in case of death or incapacity of the member at the time of conversion into OPC.
What is the time limit for filing form INC-5?
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
Website url:Register company in Delhi
Every One Person Company should bear the letters €OPC€ in brackets after it's registered name, wherever it may be printed, affixed or engraved.
ReplyDeleteDavid Mathew,
Uptra
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