One person company turnover limit

One person company turnover limit

One Person Company Turnover Limit

One Person company is new concept of Companies Act 2013. Company get registered with one person. Its self employment and single ownership. Only a natural person who is citizen of India can apply for One person company registration. The company have one share holder and one nominee. Name of member get registered with ROC. OPC is a legal entity separate from its member, offering limited liability protection to its sole member. Companies Act 2013 given certain limitation for One person company paid-up-share capital & its turnover. If one person company exceed given limit then OPC shall cease to be entitled to continue as a One Person Company. One shall required to convert it self to Private Limited company.

One Person Company to convert itself into a public company or a private company in certain cases.-

(1) Where the paid up share capital of an One Person Company exceeds fifty lakh rupees or   and its average annual turnover during the relevant period exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company.

(2) Such One Person Company shall be required to convert itself, within six months of the date on which its paid up share capital is increased beyond fifty lakh rupees or the last day of the relevant period during which its average annual turnover exceeds two crore rupees as the case may be, into either a private company with minimum of two members and two directors or a public company with at least of seven members and three directors in accordance with the provisions of section 18 of the Act.

(3) The One Person Company shall alter its memorandum and articles by passing a resolution in accordance with sub-section (3) of section 122 of the Act to give effect to the conversion and to make necessary changes incidental thereto.

(4) The One Person Company shall within period of sixty days from the date of applicability of sub-rule (1), give a notice to the Registrar in  Form No.INC.5 informing that it has ceased to be a One Person Company and that it is now required to convert itself into a private company or a public company by virtue of its paid up share capital or average annual turnover, having exceeded the threshold limit laid down in sub-rule (1).

What is Paid-up Share Capital Limit of One Person Company ?

In case the paid-up share capital of an OPC exceeds fifty lakh rupees & its average annual turnover during the relevant period exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company.

Example : An OPC Having paid-up capital of Rs. 55 Lac & turnover Rs. 2.20 Cr What will be the consequences as per CA 2013? As per Companies Act 2013 , One Person Company shall be required to convert itself, within six months of the date on which its paid up share capital is increased beyond fifty lakh rupees or the last day of the relevant period during which its average annual turnover exceeds two crore rupees as the case may be.

What is turnover Limit of One Person Company ?

In case turnover of an OPC exceeds two crore rupees & paid up share capital is increased beyond fifty lakh rupees , it shall cease to be entitled to continue as a One Person Company.

What if One Person Company Turnover Limit Exceed ?

If one person company paid up share capital exceeds Rs. 50 lac or paid up share capital of an One Person Company exceeds fifty lakh rupees during the relevant period exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company.

What is time line to convert OPC to Private Limited Company ?

OPC Shall be inform within sixty days of exceeding threshold limits to ROC.


Designation at TAXAJ

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/BusinessTrademark & Brand RegistrationDigital MarketingE-Stamp Paper OnlineClosure of BusinessLegal ServicesPayroll Services, etc. For any further queries related to this or anything else visit TAXAJ

Watch all the Informational Videos here: YouTube Channel

TAXAJ Corporate Services LLP
Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078
Contact: 8961228919 ; 8802812345 | E-Mail: connect@taxaj.com


    • Related Articles

    • Turnover Limit For Statutory Audit In India

      Statutory Audit A statutory Audit is a type of audit that is mandated by a Statute or Law to ensure the true and fair view of the book of accounts of a business is presented to the Regulators and the Public. Unlike an internal audit, Statutory Audits ...
    • What are the taxation for a One Person Company?

      Company Act 2013 introduced us new concept of single owner company that is One Person Company. As name presents its company of one person. Its similar to private Limited company however in compliances there is relief for OPC Company. OPC is not ...
    • conversion of private company into OPC

      Conversion of Private Company into OPC: Step by Step Procedure One Person Company is a new business concept introduced under the Companies Act, 2013. As the name suggests, One Person Company can be registered with a single individual only. On the ...
    • Comparison Between One Person Company vs LLP

      What is the meaning of One Person Company and a Limited Liability Partnership? One Person Company (OPC) means a Company that has only one person as to its member. An OPC is effectively a company that has only one shareholder as its member.    ...
    • Definition of one person company & its features

      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 ...