One Person Company
The concept of One Person Company (OPC) is a new form of business, introduced by The Companies Act, 2013, thereby enabling Entrepreneur carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework. One Person Company is a hybrid of Sole-Proprietor and Company form of business, and has been provided with concessional/relaxed requirements under the Act.
Features of One Person Company
One of the biggest advantages of an OPC is that only one person is required to incorporate and operate a company compared to minimum requirement of 2 persons in case of a Pvt Ltd Company. Only a natural person, who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company.
A company being a separate legal entity is unaffected with the happenings of the promoter or directors. While signing the MOA & AOA, the promoter of the OPC shall have to nominate one other person to whom the Company shall rest in case of death or disability.
A company being an artificial judicial person enjoys a few rights, one of them being, acquiring, holding and alienating any asset in its own name. Such assets are owned by the company and can be transferred by selling shares to some other person.
An OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company,
If the Paid-up capital of the Company crosses Rs.50 Lakhs or the average annual turnover of immediately proceeding 3 consecutive financial years 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 60 Days on reaching the above threshold limits.