One Person Company
The Companies Act, 2013 totally changed corporate laws in India by presenting a few new ideas that didn’t exist already. One such distinct advantage was the presentation of the One Person Company idea. This prompted the acknowledgment of a totally better approach for beginning organizations that concurred adaptability which an organization type of substance can offer, while additionally giving the security of constrained risk that sole ownership or associations needed.
Definition of One Person Company
Segment 2(62) of Companies Act characterizes a one-individual organization as an organization that has just a single individual regarding its part. Besides, individuals from an organization are only endorsers of its update of affiliation, or its investors. Thus, an OPC is viably an organization that has just a single investor as its part.
Such organizations are for the most part made when there is just one originator/advertiser for the business. Business people whose organizations lie in beginning phases want to make OPCs rather than sole ownership business in light of the few focal points that OPCs offer.
Features of a One Person Company
1. Privately owned business: Section 3(1)(c) of the Companies Act says that a solitary individual can shape an organization for any legal reason. It further portrays OPCs as privately owned businesses.
2. Single-part: OPCs can have just a single part or investor, in contrast to other privately owned businesses.
3. Chosen one: An exceptional component of OPCs that isolates it from different sorts of organizations is that the sole individual from the organization needs to make reference to a candidate while enrolling the organization.
4. No unending progression: Since there is just a single part in an OPC, his demise will bring about the chosen one picking or dismissing to turn into its sole part. This doesn’t occur in different organizations as they follow the idea of interminable progression.
5. Least one executive: OPCs need to have a base one individual (the part) as chief. They can have a limit of 15 executives.
6. No base settled up share capital: Companies Act, 2013 has not endorsed any sum as least settled up capital for OPCs.
7. Unique benefits: OPCs appreciate a few benefits and exceptions under the Companies Act that different sorts of organizations don’t have.
Formation of One Person Companies
A solitary individual can frame an OPC by buying in his name to the update of affiliation and satisfying different necessities endorsed by the Companies Act, 2013. Such notice must state subtleties of a chosen one who will end up being the organization’s sole part in the event that the first part bites the dust or gets unequipped for going into legally binding relations.
This update and the chosen one’s agree to his assignment ought to be documented to the Registrar of Companies alongside an utilization of enlistment. Such a candidate can pull back his name anytime by accommodation of essential applications to the Registrar. His designation can likewise later be dropped by the part.
Membership in One Person Companies
Just regular people who are Indian residents and occupants are qualified to shape a one-individual organization in India. A similar condition applies to candidates of OPCs. Further, such a characteristic individual can’t be a part or chosen one of more than one OPC anytime.
It is essential to take note of that lone normal people can become individuals from OPCs. This doesn’t occur on account of organizations wherein organizations themselves can possess shares and be individuals. Further, the law restricts minors from being individuals or chosen people of OPCs.
Conversion of OPCs into other Companies
Rules managing the development of one-individual organizations explicitly confine the transformation of OPCs into Section 8 organizations, for example organizations that have beneficent destinations. OPCs likewise can’t intentionally change over into different sorts of organizations until the expiry of two years from the date of their joining.
Benefits of One Person Company Registration?
1. Only one person is required
2. OPC registration process Limited liability of its member
3. OPC Registration It is unaffected by the death of member or change in ownership
4. what is opc not many compliances and minimal paperwork is required
5. OPC registration fees Easy to set up and maintain comparatively
Documents required for submission to the registrar of one person companies :
3. AADHAR CARD
4. LIGHT BILL
5. 2 MONTHS BANK STATEMENT