MENTION ABOUT ONE PERSON COMPANY.
ONE PERSON COMPANY
One Person Company is the company which mentions about single proprietorship, it also mentions all the business are carried out in an individual manner, it is categorized into two types they are private limited company and public limited company. OPC can convert itself into either public limited or private limited company. The private company mentions about 2 directors minimum and members are required, whereas in public limited company mentions a minimum three directors and minimum 7 members. One Person Company has been introduced by the company Act 2013.
STEPS TO BE FOLLOWED:
- The digital signature mentioned by One Person Company is essential, get the digital signature’s certificate from the concerned person.
- Get Director Identification number from the concerned person.
- Add an appropriate company name and create an application which mentions all details to the Ministry of the corporate office which mention for name availability.
- A document should contain the memorandum of association which also mentions articles of association.
- Put a signature and various documents to be filed should include MOA/AOA with the registrar of companies electronically.
- One Person Company mentioned about requisite fee payment to the ministry of corporate affairs, and also Stamp duty
- Mention detailed information of documents at the registrar of companies.
- Receipt of Certificate of Registration/Incorporation from ROC.
TERMS AND RESTRICTIONS:
- There is no eligibility to incorporate more than a one-person company mentioned or to become a nominee in that company more than once.
- Minor cannot become a nominee or member of the one person company or can hold the share with beneficial interest.
- An OPC is not allowed to be incorporate or converted into a company under section 8 of the Act.
- An OPC is not allowed to take up non-banking financial investment activities including investment in securities of any body corporate.
- An OPC is not allowed to convert any kind of company unless two years have expired from the incorporation date of one person company excluding threshold limit( paid-up share capital) is increased exceeds Rs 50 lakhs or its average annual turnover during the relevant period is more than Rs 2 crores i.e., if the paid-up capital of the company exceeds Rs. 50 lakhs or the average turn-over during the relevant period is more than Rs 2 crore, then the OPC has to invariably file forms with the Return on capital for conversion into a Public or private company within six months period on the above threshold limits breaching.
PRIVILEGES FOR OPC WHICH OPC MENTIONS:
- The most important reason for shareholders to incorporate the single-person company is the limited liability desire.
- Currently, the businesses that were running under the proprietorship mentions a model that could get converted into OPCs without any difficulty.
- Necessary rotation of auditor mentions after the expiry of the maximum term is not applicable.
- Single Person Company mentions and needs to have one-director minimum and it can have the director’s maximum up to 15 that also can increase by passing a special resolution as in the case of any other company.
- The provisions of section 98 and section 100 to 111 relating holding of general meetings, shall not apply to a One Person Company.
- Minimum authorized share capital needed for One Person Company which mentions with the share capital of Rs. 1, 00, 000.
- The minimum number of members of One Person Company is one and the maximum number of members of One Person Company is also one.
- One person Company mentions about the Shares. Shares are not allowed to transfer to anyone else.
- In order to subscribe to the securities of the company from giving any invitations to the public, an OPC should be prohibited.
- No OPC can convert into any other kind of company voluntarily within two years from the date of incorporation of one person company except when the threshold limit of paid-up capital being fifty lakhs is crossed or its annual turnover exceeds two crore rupees during the relevant period.
- Under section 8 an OPC cannot convert into a registered company.
- An OPC is needed to give a legal identity by declaring a particular name under which the activities of the company can be carried on. The words One Person Company must be specified below the company name, wherever the name is used, fixed or engraved.
The advantages of one Person Company are as follows
- Separate legal entity.
- 100% control on the company
- Less compliance as compared to the private limited company.
- Funding is easy.
- Limited liability, more opportunities.
- Benefits of being a small-scale industry.
- Single owner.
- Credit rating.
- Benefits under Income tax law.
- Increased prestige and trust.
- General points.
An OPC is subject to the same taxes as a private limited company.
An OPC mentions and increases the individuals borrowing capacity. Banks and Investors chose to give funds to the companies rather than the partnerships and proprietorship.
When an OPC limited by guarantee or shares involves into the contract with the company sole member, who is also the company director mentions the contract terms or offer must be recorded in writing or included in the memorandum. Or recorded in the minutes of the board meeting held next after entering into the contract OPC must inform the registrar which mentions about all contract entered into by the company that also mentions with the company sole member within a fifteen days period from the approval date
1. A boost in the country’s economy is seen due to many opportunities and less hassle, given by the one person Company. An OPC mentions about many sole proprietorships. Many sole proprietorships, are converting themselves due to these very same reasons.
2. The registration is easy comparatively, and not much compliance is to be maintained. Requires minimum paperwork, this makes the company all more desirable.
3. As per BSE, One Person Company can act as a sub-broker or as a stock. Apart from all these features, one person companies are helping tremendously in increasing overall India’s overall economy. More and more entrepreneurs are coming up for their business set up. No intervention from any third party is seen since that makes highly beneficial.
- Is not possible to mention or to add partners.
- Nearby cost is similar with the private limited company.
Other than most of the companies are using this One Person Company.
The United Kingdom is leading one which mentions One Person Company. A newly introduced concept is the One Person Company which mentions complete details, that is possible to One Person Company precedent set.
A company is formed with one or more persons under this act.
- It mentions and subscribes to the memorandum of association names.
- For an unlawful purpose, a company may not be formed.
Based on the one member company rules, 2003 of Pakistan mentioned and provide for single-member company incorporation
The UNITED STATES OF AMERICA.
In several states of the USA grants and mention the formation of single-member Limited Liability Company.
One Person Company is identified and mentioned by UAE.
Under the Amendment Act of 2004, Singapore allows and mention about single-member formation Limited liability Company.
In 2005 China introduced and mentioned One Person Company.
CONCEPT WHICH ONE PERSON COMPANY MENTIONS:
Information Technology plays a major role which mentions one person company entrepreneurs are allowed to take part in economic activity. It also mentions that every entrepreneur who creates the idea of their own and participate in the marketplace. The individual can operate in the economic domain and should mention about effective contribution.