Incorporation of One Person Company (OPC)
INTRODUCTION TO ONE PERSON COMPANY
The concept of One-person company is a new vehicle/form of business, introduced by the Companies Act 2013, thereby enabling entrepreneurs carrying on the business in the sole-proprietor form of business to enter into a corporate framework.
OPC is a hybrid of sole-proprietorship and Company form of business and has been provided with concessional/relaxed requirements under the Act.
It helps the person having sole-proprietorship to create a single-person economic entity same like other forms of business. One person company offers limited liability protection to its stakeholders has continuity of business and is easy to incorporate. Incorporation of OPC requires minimum paperwork and compliance.
DEFINITION OF ONE PERSON COMPANY
As per provision of section 2(62) of the Companies Act, 2013 defined (62) “one person company” means a company which has only one person as member.
It is incorporated as a Private Limited Company.
- The most significant reason for shareholders to incorporate the ‘single-person company’ is certainly the desire for the limited liability. Businesses currently run under the proprietorship model could get converted into OPCs without any difficulty.
- Mandatory rotation of auditor after expiry of maximum term is not applicable.
- One Person Company needs to have minimum of one director. 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.
- Minimum and maximum number of members for One Person Company is one only and that one person has to appoint a nominee with respect to his shareholding in OPC.
- The one person Company enjoys various privileges upon other companies.
For any queries related to incorporation/registration of OPC in India please contact:
J. K. Gupta & Associates
257, Vardhaman City Center,
Gulabi Bagh Near Shakti Nagar Railway Under Bridge
Phone No- 011-23654449/ +919810043622
Email Id:- [email protected]