ONE PERSON COMPANY - A REVOLUTIONARY NEW CONCEPT OF OWNERSHIP
The New Companies Act, 2013 recently notified by the Ministry of Corporate Affairs has introduced a revolutionary new concept of One Person Company (OPC) in India. Now, there is no need to have minimum two shareholders and only single shareholder can form a Private Limited Company called OPC. Its main features are:-
1. OPC shall be a Private Limited Company
2. OPC can have one or two Directors, who can be different from the promoter. The promoter can also act as a sole Director of the Company.
3. OPC has to indicate the name of the person in Memorandum who shall act in the event of death or incapacity of one person.
4. Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate OPC. The same also applies to the nominee for the sole member of OPC.
5. Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.
6. Such company cannot be converted voluntarily into any kind of company unless two years have expired from the date of incorporation, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees
Requirements for registration
Steps to be taken to get incorporated a public limited company
Step - 5 File the documents for Registration
After the Registrar is satisfied that all formalities are complied with, he issues a Certificate of Incorporation, which shall be conclusive evidence as to the formation of the Company.
After the Registrar is satisfied that all formalities are complied with, he issues a Certificate of Commencement of Business.
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