One Person Company(OPC) has the blended features of a sole
proprietorship and a private company.
OPC is also known as a one-man company.
Like a sole proprietorship allows you to own the firm completely, an OPC also
has just one shareholder. But unlike a sole proprietorship, in an OPC the owner
has limited liability and the burden of outstanding debts does not fall on the
owner, as an OPC is treated as a separate entity. Now, let’s see the features
and the types of one-person companies.
Important Features of
OPC
The following are some important features of OPC:
As the name suggests, One Person Company has only one person
as the member or shareholder.
The company can have only one shareholder but can have up to
15 directors, and the number can be increased with a resolution.
An OPC can be either a company limited by grants or a company
limited by guarantee or an unlimited company
An OPC to be registered as a limited by shares company shall
have to comply with the following requirements:
Paid-up capital of a minimum of ₹1 Lakh
The OPC should have in place restrictions for the transfer
of shares
The OPC has to prohibit any invitations to the public for subscribing
to the securities of the company.
The company must provide for itself a legal identity by
specifying a name under which the business could carry out its activities.
Types of One Person
Company You Can Incorporate Under the Act
A company can be
A company limited by shares, or
A company limited by guarantee, or
An unlimited company
Therefore as per the Companies Act of 2013, there are five
types of OPC you can establish. They are:
OPC Limited by Shares
OPC Limited by Guarantee with Share Capital
OPC Limited by Guarantee without Share Capital
Unlimited OPC with Share Capital
Unlimited OPC with Share Capital
Eligibility Criteria
for the Shareholder and Nominee Member of OPC
The person who wishes to be the shareholder or nominee for
the OPC should be a natural or real person. This means, unlike other companies
in which a corporation can become a shareholder of a company, in an OPC the
shareholder and the nominee have to be a real people.
The person should not be a minor
The person has to be an Indian citizen and a resident of
India. As per the Act, a resident of India is a person who has stayed in India
for not less than 120 days in yeh preceding financial year.
A person can be a member or nominee to only one OPC at a
time. In case a person acquires membership or nomination to more than one OPC
by virtue, he or she has to give up either of them within 180 days.
Created & Posted by Pooja
Income Tax Expert 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/Business, Trademark
& Brand Registration, Digital
Marketing, E-Stamp Paper Online, Closure of
Business, Legal Services, Payroll 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