WHAT IS ONE PERSON COMPANY (OPC)?
One Person Company (OPC) is a private liability company registered with only one person as its sole owner and shareholder. The concept of One Person Company is introduced in India through the Companies Act, 2013. One Person Company means a company which has only one person as a member. One Person Company is a private company under the Companies Act 2013.
Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate a One-Person Company and can become a nominee for the sole member of a One Person One Person Company. No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company.
"Resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
The subscriber to the memorandum of a One Person Company shall nominate a person, after obtaining his/her prior written consent, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.
OPC can have maximum paid up capital of Rs.50.00 Lakhs and the average annual turnover shall not exceed Rs.2 Crores. If the paid up share capital of a One Person Company exceeds fifty lakh rupees or its average annual turnover exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company and shall be required to convert itself into either a private company with minimum of two members and two directors or a public company with minimum of seven members
Restrictions on One Person Company (OPC)
- Only Individuals who is an Indian Citizen and Resident in India shall be eligible to incorporate a One-Person Company
- An Individual can incorporate only one (1) OPC or become a nominee in one (1) OPC.
- No shareholders can be added to One Person Company (OPC)
- OPC can have maximum paid up capital of Rs.50.00 Lakhs only
- Average annual turnover of OPC shall not exceed Rs.2 Crores.
Visit HireCA.com Now