ONE PERSON COMPANY (OPC)

“Private company” refers to a business that has a minimum amount of paid-up share capital as specified by its articles of incorporation.
  • restricts the right to transfer its shares ;
  • Except in case of One Person Company, limits the number of its members to two hundred :
    Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member :
    Provided further that —
  • Schedule 1 of Companies Act 2013.
  • Persons who are in the employment of the company ;
  • Persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, Shall not be included in the number of members ;
  • prohibits any invitation to the public to subscribe for any securities of the company ;

OPC UNDER COMPANIES ACT, 2013

AS PER SECTION 2(62) OF COMPANIES ACT 2013 READ WITH RULE 3 OF COMPANIES INCORPORATION RULE, 2014;
One Person Company” means a company which has only one person as a member.

  • Only a natural person who is an Indian citizen and resident in India-
  • Shall eligible to incorporate an OPC:
  • Shall be a nominee for the sole member of an OPC

An individual is considered a “resident in India” if they have spent at least 120 days in the country during the fiscal year that just ended.

Any stay from January 1, 2018, until the date this regulation was announced, would be considered toward the number of days a director spent in India during the 2018–2019 fiscal year. A natural person is not permitted to be a nominee of more than one one-person company or a member of more than one one-person company at any time.

ADVANTAGES OF AN OPC

  • One of the main advantages of OPC is that it has more opportunities with limited liability as the liability of OPC is limited to the extent of the value of share it holds.
  • OPC is a separate legal entity and capable of doing everything that a businessman wants to do.
  • Shall be a nominee for the sole member of an OPC
  • OPC enjoys little compliance burden as compared to a private limited company.
  • OPC always enjoy an increased trust and reputation in the Industry.
  • An OPC can be limited by guarantee or limited by shares or an unlimited company.
  • One Person company need not hold any annual general meeting.
  • Provisions relating to meetings and quorum do not apply to them.
Key Tag :One Person Company Registration | Opc Registration | Delhi NCR | India