The Concept of One Person Company (OPC) was introduced by Companies Act 2013. The logic behind concept of OPC was to “allow a single person to register itself as Private Limited Company”. Now under companies act, even a single share holder can apply for Private Limited Company and such company shall be called as One Person Company. The ultimate purpose of OPC is that company registration can be obtained by only one person who will become owner of company through acquiring 100% shares.
Registration aspect of One Person Company:
The registration process for one person company is similar to registration of Private Limited Company however documents for Nominee shall also be required while applying for OPC. To apply for OPC registration, it is essentially required to assign a person as Nominee of Shareholder and such nominee will become shareholder when shareholder demise.
To apply for OPC registration, an application in web-based Spice Form has to be filed with Ministry of Corporate affairs. Before applying for registration a separate application can also be filed for name approval and such approved name can be use while filing registration application. Generally it takes a week to obtain registration certificate of OPC.
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Important point regarding One Person Company Registration:
- Generally people start OPC with only one Director however OPC can appoint maximum 15 directors if require.
- Whenever require OPC can be converted into Private Limited Company however in some cases it is mandatorily to convert OPC into private limited company. There are 2 conditions are prescribed which make OPC liable for conversion into private Limited company,
- When paid up capital exceeds INR 50 Lakh
- When turnover exceeds from INR 2 Crore in a financial year
- An OPC cannot run NBFC business and cannot acquire securities of any body corporate
- One Person company is not required to conduct AGM
Conclusion:
Registration of One Person Company is unique concept which allows New Entrepreneurs to start their business with their own without involving other persons as shareholder of company. If an small businessman want to start their business in organised way then OPC is one of the best way to start. Further there are various advantage are being provided to One Person Company (OPC).