The concept of one person company opc allows a single person to run a company limited by shares while a sole proprietorship means an entity which is run and owned by one individual and where there is no distinction between the owner and the business. The business is regarded are a separate entity, but has several different owners. 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, where the company to be formed is to be a one person company, by subscribing their names or his name to a memorandum in the manner prescribed and complying with the requirements of this act in respect of registration. 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. Introduction to one person company opc under the companies act, 20 no. An opc limited by shares shall comply with following. As the name suggests a single person can register as sole proprietor of a company. This new concept of one person company is a great initiative taken by the ministry of corporate affairs. So, an opc is effectively a company that has only one shareholder as its member. View all one person incorporated companies list in india.
In separate notices to all interested parties on march 15, the commission requested. Further, an opc is owned and can be managed by one person as the sole member and director. The atoz of one person company registration in india. One person company feature is such that it has only one shareholder who owns 100% stake of the company. One person company rule 3 of companies incorporation. What are the documents required for one person company. One person company or single person company is new concept of company registration in india which is also known as opc company registration in india. This paradigm shifts from the companies act 1956, where minimum two members are required float private limited company as well as public company. 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.
The concept of one person company has been included in section 2 62 of company bill india, 2011. Sec releases draft guidelines on one person corporation the securities and exchange commission sec has released draft guidelines setting forth the process and documentary requirements for organizing a one person corporation opc. The introduction of one person company opc in india is a move that will encourage micro businesses and entrepreneurship with simpler legal compliances that will enable individuals to generate economic growth as well as employment opportunities. Matt barrie, ceo of the milliondollar, oneperson business is proof that you can have the life and career you desire if you dare to dream big. 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 online.
Find all complete list of one person incorporated companies in india. It can have directors up to a maximum of 15 which can also be increased by passing a special resolution as in case of any other company. Format of aoa and moa of one person company resolved. What are the disadvantages of a one person company in india.
A one person company is registered in the same manner as a private limited company, thereby the same provisions are followed by both. Search by cin, roc type, directors details, address and company status as well. Introduced under the companies act, 20, section 262 defines that the opc is a company which should have one person as its member. Ca rajesh saluja opc section 262 one person company means a company which has only one member. 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. This article deals with the legal framework of one person company and the issues which have arisen in respect to it. 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. 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. One person company registration opc registration in india. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. Oct 08, 2017 pr strategies for a oneperson company. I write about small businesses doing innovative pr.
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. Oneperson company a new business opportunity in new. A hawklike focus on your most important functions as a business owner is. The milliondollar, oneperson business unlocks strategies that will help solo entrepreneurs achieve more than they ever thought possible. A minor shall not be eligible to become a member or nominee of the one person company or can hold share with beneficial interest. One person company registration is simplified with online filing and process. Sep 20, 20 a one person company is incorporated as a private limited company with only one person as its member. One person company as a company which has only one person as a member. The companies act, 20 completely revolutionized corporate laws in india by introducing several new concepts that did not exist. One person company is a new type of business entity that allows a single entrepreneur to operate a corporate entity with limited liability. Jun 25, 2011 section 31 c deals with the formation of one person company. One person company vs sole proprietorship vakilsearch. All emails from the system will be sent to this address.
The business is regarded as a separate entity owned by one person. A one person company needs to have minimum of one director. 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. One person company registration opc registration myonlineca. Time is a soloists most valuable asset, lonier says. We bring you some of the trending tren provisions of the new companys act 20 came into stuff about one person company. Also, some suggestions have been made to make the structure of opc effective and efficient. Aug 23, 2018 students have lot of doubts with respect to opc so here we go with a concise solution. The concept was introduced in the companies act of 20. What are the disadvantages of a one person company in. One person company can be formed only with one person that means in contrast with other form of companies one person company can enjoy certain privileges and exemptions. An opc one person company as the name suggests is a company formed by a single person i. One person company at the heart of this article lies an attempt by the author to understand. Conversion of an opc into public or private company.
Apr 16, 2015 according to section 2 62 of the companies act, 20, one person company opc means a company which has only one person as a member. Section 262 of companies act defines a one person company as a company that has only one person as to its member. Now, in india, an individual can establish and run a company, called one person company opc which has been introduced with the enactment of the. One person company registration can be completed in india online and at rs. The new companies act 20 was approved by the parliament in 20. Though this concept is new in india, opcs are in existence in quite few countries like china, uk, australia, singapore and pakistan etc. Registration for one person corporations to open next week the securities and exchange commission sec will start accepting applications for registration of a corporation with a single stockholder on may 6, following the issuance of the pertinent guidelines. One person company of soleproprietor and company form of business has been provided with concessional relaxed requirements under the companies act, 20. Aug 16, 2017 if there is only one promoterfounder, one person company opc is the best way to start a company. An one person company incorporation is similar to private company registration, the only variation is appointment of nominee. Pdf relevance of one person company international journal of. A opc is a type of private limited company where minimum and maximum number of members is one. For the purposes of holding board meetings, in case of a one person company which has only one director, it. The paper attempts to explain the role, pros and cons of one person company in indian business.
One person private limited company registration in india is administered by the registrar of companiesroc in india. Before registering a startup company in india as a opc pvt ltd company, company name check can be checked done with companiesinn. Only a natural person who is an indian citizen and resident in indiashall be eligible to incorporate a one person company. The main objective of introducing the concept of one person company is to encourage single and enthusiastic entrepreneurs. A minimum of 2 directors and 2 shareholders are needed in order to register a private limited company. Pdf relevance of one person company international journal. Section 3 1c a company may be formed by one person by subscribing hisher name to a memorandum. If there is only one promoterfounder, one person company opc is the best way to start a company.
To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. Section 2 62 of the companies act, 20 defines opc as the company which has only one person as a member. 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 shareholder of the company. With ever changing scenario of business the new concept of one person company has been emerged as per companies act 20. Students have lot of doubts with respect to opc so here we go with a concise solution. 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 concept of one person company was introduced in the indian company law. This article discusses one person company concept as a strategy to develop small. Steps to register a one person company authorstream. One person company one person company is a new concept in india which has been introduced by the companies act 20. The commission en banc on april 25 approved the guidelines on the establishment. The concept of opc was first recommended by an expert committee constituted under the leadership of dr. One person company may be either a company limited by share or a company limited by guarantee or an unlimited company.
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