One Person Company (OPC) – A New Concept:

One Person Company (OPC) - A New Concept:

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One Person Company (OPC) – A New Concept:

  • In the Companies Act 2013, this a very new concept introduced by the Law makers. Such a beautiful concept is not seen in the old Companies Act 1956.Now a days if any person wants to incorporate the private limited company then he can forms one person company easily without any additional member being involved.

    What is One- Person Company?

    According Section 2(62) of the Companies Act, 2013 (“Act”) defines OPC as a company which has only one person as a member.

    Legal Status of the One Person Company:

    OPC has a separate legal status in the eyes of law. But OPC can be registered as a private limited company only. All the provisions of private limited company will be unanimously applicable to OPC, unless otherwise specifically exempted.

     

    What are minimum requirements for OPC?

    • Minimum 1 Shareholder
    • Minimum 1 Director
    • The director and shareholder can be the same person
    • Minimum 1 Nominee
    • Letters ‘OPC’ to be suffixed with the name of OPCs to distinguish it from other companies

    There are some condition which needs to be fulfilled for registering  the OPC-

    • Any naturally born Indian who is also a resident of India (i.e. have stayed in India for at least 182 days during the immediately preceding FY).
    • However, one of such person cannot form more than one OPC.
    • OPC cannot be incorporated or converted into Section 8 Company (i.e. company with charitable objects, etc.) or carry out non-banking financial activities, including investment in securities of any body corporate.

     

     What are the benefits available to the OPC?

    1. a) Benefit under Income Tax Laws-

    Any remuneration paid to the director will be allowed as deduction as per income tax law.

    1. b) Small Scale Industries Benefits-

    An OPC can avail the various benefits provided to Small Scale Industries like

    – Lower rate of Interest on loans,

    – Easy funding from the bank without depositing any security to a certain limit,

    – Manifold benefits under Foreign Trade policy etc.

     

    1. c) Separate Legal Entity-

    Due to separate legal entity available to the OPC, it is very easy for OPC to gain the trust & prestige value in the market.

     

    1. d) 100% Ownership-

    Being the sole Proprietor/ owner of the company, it is very easy in quick decision-making, controlling and managing the business without depended on others.

    List of Exemptions Available to OPCs under the Act

    Following sections are not applicable to OPCs-

    • 98(Power of Tribunal to call meetings of members, etc.)
    • 100(Calling of EGM)
    • 101 &102 (Notice of Meeting & Statements to be annexed to Notice)
    • 103 (Quorum of Meetings)
    • 104(Chairman of Meetings)
    • 105(Proxies)
    • 106(Restriction on Voting Rights)
    • 107 108(Voting by show of Hands & by Electronic Mode)
    • 109& 110 (Demand for Poll & Postal Ballot)
    • 111(Circulation of Member’s Resolutions)

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