The companies act, 20 completely revolutionized corporate laws in india by introducing several new concepts that did not exist. The indispensable guide to earning a sixfigure takehome income on your own terms, from contributing writer elaine pofeldt. One person company is a concept introduced in india by the companies. One person company and its limited liability corporate law. Notes this new concept of one person company is a great initiative taken by the ministry of corporate affairs. One person company registration procedure opc basic information about the one person company registration. The objective behind introducing the concept of opc was to provide a legal regime to small business owners, sole proprietor etcetera and provide them with the. Copy of pan self attested for director and nominee copy of aadhar self attested for director and nominee copy of passport driving license voter id card residential proof copy of bank statement bank passbook electricity bill mob. Compliance and annual filing for one person company opc.
With the enactment of the companies act, 20, some new ideas have been introduced into indias corporate legal system which werent part of the erstwhile old companies act, 1956, one such concept introduced by the act is the concept of one person company, which means an individual can now constitute a company. The debentures carried a floating charge on the assets of the company. It is an unique identification number allotted to an individual who is an existing director of a company or intends to be appointed as director of a. Registrationwala is a leading network of registration professionals in india. Under the guidelines, a natural person, trust or estate may form an opc. Salient features of opc personal freedom that allows the professional, skilled person to adopt the business of his choice. Better image and credibility in market in india, opc is a private limited company, which is a popular and well known business structure. If opc limited by shares or by guarantee enters into a contract. The concept of one person company has been prevalent in the international corporate regimes of u. One person company means a company which has only one member. Recognition in the income tax act a business with only an individual owner is known as a sole proprietor.
One person private limited company registration in india is administered by the registrar of companies roc in india. As the name suggests a single person can register as sole proprietor of a company. What are the documents required for one person company. The email address is not made public and will only be used if you wish to receive a new password or wish to receive certain news or notifications by email. Oneperson company a new business opportunity in new. A one person company is incorporated as a private limited company with only one person as its member.
Pdf relevance of one person company international journal. One person company registration opc registration online. Introduction to one person company opc under the companies act, 20 no. Format of aoa and moa of one person company resolved. The financial statements of a one person company can be signed by one director alone.
Provisions under the companies act, 20 the act clause 62 of section 2 of the act defines an one person company as a company which has only one person as a member. One person company opc under new companies act, 20. Advantages and disadvantage of one person company or opc. One person company, to state particulars of the person nominated by the proposed director to be the secretary of the company in case of resignation or death of the last remaining director. One person company as a company which has only one person as a member. This led to the recognition of a completely new way of starting businesses that accorded flexibility which a company form of entity. One person company shall file its financial statement along with necessary documents which is duly adopted by the member within 180 days from the date of ending of. Private limited companies in the uk can be registered at companies house by just one person. Introduction as per the companies act 1956 there is no such concept of one person company.
Advantages and disadvantages of one person company taxguru. One person company registration opc registration myonlineca. Personality driven passion and implementation of a business plan. The concept was introduced in the companies act of 20. View all one person incorporated companies list in india. She is the author of the milliondollar, one person business, a look at how entrepreneurs are hitting sevenfigure revenue in businesses where they are the only employees, tapping automation and other technology to scale their efforts random house, jan. On such gamechanger was the introduction of one person company concept. Cash flow statement is not a mandatory part of financial statements for a one person company.
This one person company allows a single person to form and run a company in any economic field. Section 262 of companies act defines a one person company as a company that has only one person as to its member. The companies act, 20 completely revolutionized corporate laws in india by introducing several new concepts that did not exist previously. This article discusses one person company concept as a strategy to develop small. A minor shall not be eligible to become a member or nominee of the one person company or can hold share with beneficial interest. What are the disadvantages of a one person company in india. The business is regarded as a separate entity owned by one person. One person company of soleproprietor and company form of business has been provided with concessional relaxed requirements under the companies act, 20. Aug 23, 2018 one person company compliances duration. Caonweb has the widest clientele all over india for providing costeffective services of company registration that made us popular. The provision for a one person corporation should encourage the formation of more businesses in the country by making it easier for entrepreneurs to start a limited liability company, sec chairperson emilio b. One person company is a very new concept introduced by the companies act 20.
However, there are certain circumstances where one person can constitute a valid meeting. Before registering a startup company in india as a opc pvt ltd company, company name check can be checked done with companiesinn. This paradigm shifts from the companies act 1956, where minimum two members are required float private limited company as well as public company. Introduction genesis and global development definition of one person company special features of opc privileges to opc incorporation of opc conversion of opc to pvt. Being experts in legal, professional and financial advisory services, our.
Search for more than 15 lacs companies, 40 lacs trademarks in all classes registered in india. May 02, 2014 the concept of one person company is an attempt to organize the unorganized, yet a very large, sector of proprietorship concerns. One person company opc is a company which has only one person as a member. If there is only one promoterfounder, one person company opc is the best way to start a company. Make time for your life the dividing line between work and play can often become blurred when you run your own business, particularly if its homebased. There can be more than 1 director, but not more than 1 shareholder. The implementation of the companies act 20 an individual person can now constitute a company under the concept of one person company hereinafter mentioned as opc. This means for the financial year 201819, income tax return in form itr 6 has to be filed on or before 30 th september 2019. An opc one person company as the name suggests is a company formed by a single person i. One person company opc the concept of one person company opc is a new vehicleform of business, introduced by the companies act, 20 no. Jun 25, 2011 1 where a one person company limited by shares or by guarantee enters into a contract with the sole member of the company who is also director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of. A declaration 17 of 27 allan hans muhome companies act 20 exploring key changes april 2016. The concept of opc was first recommended by an expert committee constituted under the leadership of dr.
The meeting must be held as per provisionsrules of companies act. One person company registration opc company registration. Saloman and his two sons became the directors of this company. One person company one person company is a new concept in india which has been introduced by the companies act 20. A unique name gives an introduction of your company to people, for example, myonlineca or karuna technology private limited. Financial statements of a one person company needs to be filed with the registrar, after they are duly adopted by the member, within 180 days of closure of. One person company in india international journal of law and. It is registered as per the compliance and regulatory guidelines of the ministry of corporate affairs mca. Opc one person company is a private company incorporated by one person.
Though the meaning of the term can be determine by the name itself that it consists of one member only. Caonweb is one of the best service providers for opc registration. Dec 30, 2015 an opc one person company as the name suggests is a company formed by a single person i. K, singapore, china, australia and other european countries and is based on the recommendations of the expert committee on company law headed by dr. As the paid up share capital of the captioned company has exceeded fifty lakh rupees or its average annual turnover during the relevant period has exceeded two crore rupees, the company has ceased to be a one person company. It would allow many businessmen who are desirous of establishing a registered company on their own without having to induct any other person on the board of the company and as a. Aug 16, 2017 however, if the company s registered address is the same as the one mentioned in inc32, inc22 is not required. Also, some suggestions have been made to make the structure of opc effective and efficient. So, an opc is effectively a company that has only one shareholder as its member. Where a natural person, being member in one person company becomes a member in another opc by virtue of his being a nominee in that opc, then such person shall meet the eligibility criteria of being a member in only one opc within a period of one hundred and eighty days, i. One person company what is 1person company and how to register.
One person company opc can be formed with only 1 owner, who acts as both the director as well as a shareholder of the company. The rise of one milliondollar, one person businesses in the past five years is the biggest trend in employment today, offering the widest range of people the most ways to earn a living while having the lifestyles they want. The concept was introduced in the companies act of 20 2. On 6 may 2019, the securities and exchange commission of the philippines sec started accepting applications for registering a company in the philippines with only one shareholder in other words, it is now possible to register a company in the philippines without the need for four other shareholders or a board of directors. However, there is no road to raise equity funding or offering the employee stock option in one person company in the early stage of the period. Sep 20, 20 a one person company is incorporated as a private limited company with only one person as its member. Dec 24, 20 private limited companies in the uk can be registered at companies house by just one person.
All emails from the system will be sent to this address. However, if the one person company s paid up share capital has increase the threshold limit of 50 lakhs rupees or average annual turnover has increased 2 crores rupees then opc has to compulsorily convert to a private or public limited company within a period of 6 months from the date of breaching the threshold limit. And now as per new companies act 20 one person company can be formed. This article deals with the legal framework of one person company and the issues which have arisen in respect to it. One person company is required to file their income tax return in form itr 6 for the financial year on or before 30 th september of the following financial year with the tax department. The new companies act 20 was approved by the parliament in 20. Elaine pofeldt is an independent journalist who specializes in small business, entrepreneurship and careers. One person to form a limited company rapid formations. Under the companies act of 1956 the definition of body corporate excluded from its scope a corporation sole but the act of 20 has removed this exception and come up with a new revolutionary concept i. One person company registration opc registration procedure in. Elaine pofeldt the milliondollar, one person business. Opc requires one member member refers to someone who subscribes to memorandumhas their name in the register of membersholds. Now, in india, an individual can establish and run a company, called one person company opc which has been introduced with the enactment.
The one person company opc is a newly introduced form of a company in india by the latest company law of the country, the companies act of 20. Anonymous querist 01 january 2015 dear sir, please mail me. Companies acct 1956, companies act 20, one person company 1. For converting into a private or public company one person company has to increase the number of members and directors up to 2 or minimum of 7 members and two or three directors as the case may be. Whilst the application form requires you to have a minimum of one director and one shareholder, it is commonplace for the same individual to hold both of these positions. Conclusion under the one person company even a single person can start a business without fear of unlimited liability no matter how risky it is. The memorandum of one person company shall indicate the name of the other person, who shall, in the event of the subscribers death or his incapacity to contract become the member of the company. In the old companies act 1956 a minimum of two directors and shareholders were required to form a.
Consent of nominee that heshe is willing to be the member of the one person company in case of any emergency as well as proof of identity and residential address. If you are thinking of incorporation of one person company, then you should also start thinking of its name. The atoz of one person company registration in india. The concept of one person company was introduced in the indian company law. The trust does not refer to a trust entity, but to the subject being managed by a trustee. A minimum of 2 directors and 2 shareholders are needed in order to register a private limited company. Two or more people coming together and sharing profits and losses is known as a partnership firm, while two or more people forming a separate legal entity and owning parts shares of it is known as a company. A one person company is treated as a private company. One person company opc is a hybrid of sole proprietor and company form of. Opc is one of the significant milestones of the companies act, 20, introduced to encourage selfemployment with a backbone of indias legal system. One person company may conducted board meeting, and one meeting may be held in each half of a calendar year and gap between two meetings should not be less than 90 days 7. An one person company incorporation is similar to private company registration, the only variation is appointment of nominee. With the implementation of the companies act, 20, a single national person can constitute a company, under the one person company. One person company registration opc registration in india.
The business is regarded are a separate entity, but has several different owners. One person company as per section 262 of the companies act, 20, one person company means a company which has only one person as a member. One person company is a brand new concept which gives full authority over the company to the single promoter while limiting its liability or duties to contribute to the business. One person company one person company hereinafter mentioned as opc is a radical idea which came into the picture with the introduction of the companies act, 20. Format of aoa and moa of one person company this query is.
One person companies located in india and involved in agriculture, hunting and forestry agriculture, hunting and one person company. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. A one person company opc private limited has many advantages as compared to companies and proprietorship firm. Can a company be the oneperson in a one person company. In a one person private limited company, only investment in business is lost, personal assets of the directors are safe. To convene a meeting, two or more persons must be present. Steps to register a one person company authorstream. One person company is a new concept in india which has been introduced by the companies act 20. One person company rule 3 of companies incorporation rules, 2014 11 incorporation of opc 12 important instructions filing of eform for incorporation 14 conversion of opc into public or private company and viceversa 16 conversion of private company into one person company 17 withdrawal or death of nominee or member of opc 18. The concept of one person company opc is a new vehicleform of business, introduced by the companies act, 20 no. One person company is the company which is incorporated by only one person.
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