General
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Features of One Person Company (OPC)
1.Only One Shareholder:
Only a natural person, who is an
Indian citizen and resident in India, shall be eligible to incorporate a
One Person Company. The term "Resident in India" means a person who
has stayed in India for a period of not less than 182 days during the
immediately preceding one calendar year.
2. Nominee for the
Shareholder:
The Shareholder shall nominate another person who shall become the shareholders
in case of death/incapacity of the original shareholder. Such nominee
shall give his/her consent and such consent for being appointed as the Nominee
for the sole Shareholder. Only a natural person, who is an Indian citizen and
resident in India shall be a nominee for the sole member of a One Person
Company.
3. Director:
Must have a minimum of One Director,
the Sole Shareholder can himself be the Sole Director. The Company may have a
maximum number of 15 directors.
Terms and Restrictions of OPC
1. A person shall not be eligible to
incorporate more than a One Person Company or become nominee in more than one
such company.
- Minor cannot shall become member or nominee of the One
Person Company or can hold share with beneficial interest.
- An OPC cannot be incorporated or converted into a
company under Section 8 of the Act. [Company not for Profit].
- An OPC cannot carry out Non-Banking Financial
Investment activities including investment in securities of anybody
corporate.
- An OPC cannot convert voluntarily into any kind of
company unless two years have expired from the date of incorporation of
One Person Company, except threshold limit (paid up share capital) is
increased beyond Rs.50 Lakhs or its average annual turnover during the
relevant period exceeds Rs.2 Crores i.e., if the Paid-up capital of the
Company crosses Rs.50 Lakhs or the average annual turnover during the
relevant period exceeds Rs.2 Crores, then the OPC has to invariably file
forms with the ROC for conversion in to a Private or Public Company, with
in a period of Six Months on breaching the above threshold limits.
Steps to Incorporate One Person Company (OPC)
- Obtain Digital Signature
Certificate [DSC] for the proposed Director(s).
- Obtain Director Identification
Number [DIN] for the proposed director(s).
- Select suitable Company Name,
and make an application to the Ministry of Corporate Office for
availability of name.
- Draft Memorandum of Association
and Articles of Association [MOA & AOA].
- Sign and file various documents
including MOA & AOA with the Registrar of Companies
electronically.
- Payment of Requisite fee to
Ministry of Corporate Affairs and also Stamp Duty.
- Scrutiny of documents at
Registrar of Companies [ROC].
- Receipt of Certificate of
Registration/Incorporation from ROC.
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