All about one person company
Meaning of One Person Company
One-person company means
as its name says that only one person in a company as a member. In other words,
we can say one-person company can be incorporated by having an only one member.
The Companies Act, 2013 completely revolutionized corporate
laws in India by introducing several new concepts that did not exist
previously. On such game-changer was the introduction of One Person Company
concept. This led to the recognition of a completely new way of starting
businesses that accorded flexibility which a company form of entity can offer,
while also providing the protection of limited liability that sole
proprietorship or partnerships lacked.
Advantage:
- Main advantage of the
one-person company is limited liability of Member.
- There are less
compliances than a private limited company other than one-person
company.
- Perpetual Status.
- The member can be
exit easily by transferring his/her share.
Limitation:
- Paid up share capital
of the one-person company does not exceed Rs. 50 Lakh (i.e. paid up
share capital ≤ 50 lakh), and
- Average annual
turnover of the one-person company does not exceed Rs. 200 Lakh last 3
consecutive Year. (i.e. Average Annual Turnover ≤ 200 Lakh)
Who can Form one-person company?
Only a natural
person can form a one-person company.
No artificial person like company, LLP, Partnership firm etc. can form One
Person Company.
Conversion:
- Compulsory
Conversion: if the paid-up share
capital or Average annual turnover exceed the limit mentioned above in
limitation point, then the one-person company compulsorily required to be
convert in private limited company having more than one member.
- Voluntary Conversion:
if such person company want
to be convert into private limited company having more than one member
then such company can be convert through application to MCA as per
prescribed procedure at any time but at least after 2 year of
incorporation.
Limit of
Directors:
Member of One-person company can appoint himself as a
director. And total number of directors cannot be more than 15. (Maximum 15
director).
Nominee:
Every one-person company is mandatorily required to appoint nominee like relative, friends etc.
Role of nominee is nothing till the death of such member.
One person can be a member in only one One-person company. In
other words, one person cannot be more than one OPC.
Requirement
to Incorporate One Person Company:
- Digital Signature
certificate: to apply DSC an individual should have Address proof, Aadhar
Card, Pan Card, Photo, Email Address, mobile number
- Director
identification number: any individual can apply DIN along with required
documents to MCA.
- Name Approval
- Memorandum of
Association and Articles of Association: it describes the object,
structure, capital introduced etc.
- KYC documents
- Ownership proof of
Registered office: Like Rent agreement along with NOC from the owner, if
it is owned by the same individual then electricity bill etc.
After application as per prescribed forms to MCA, MCA issued a
certificate of Incorporation after verification of all documents.
Superb sir
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