What is One Person Company

What is One Person Company ?

One person company means a company which has only one person as a member.

 

Incorporation:

• Will be formed as Private limited Company.

• Name of nominee who will continue in event of death to be specified.

• Words “One Person Company” to be mentioned below name.

 

Meeting:

• No AGM required.

• No Board Meeting required in case of only one director.

• Entering resolution in minute’s book is sufficient.

• Minutes book to be dated and signed.

 

Director:

• Minimum 1 director required.

• Subscriber of MOA deemed to be first director till director is duly appointed.

 

Accounts:

• Financial Statement may not include cash flow statement.

• Accounts to be filled within 180 days of F.Y.

• Boards reports to contain only response to auditor’s qualification.

 

Signing:

• Financial Statement can be signed by one director alone.

• Annual return to be signed by CS if appointed also by a director.

 

INCORPORATION COMPANY (Forms):

• INC-1 Application for reservation of name 1A.

• INC-2 OPC- Application for Incorporation New form.

• INC-3 OPC- Nominee consent form new form.

• INC-4 OPC- Change in Member/Nominee New form.

• INC-5 OPC- Intimation of cessation new form.

• INC-6 OPC- Application for Conversion New form.

FAQ regarding OPC.

 

Who can start a One Person Company ?

(1) Only a natural person who is an Indian citizen and resident in India-

(a) shall be eligible to incorporate a One Person Company;

(b) shall be a nominee for the sole member of a One Person Company.

 

Can anyone Incorporate more than 1 OPC ??

No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company.

Note : Where a natural person, being member in One Person Company in accordance with this rule becomes a member in another such Company by virtue of his being a nominee in that One Person Company, such person shall meet the eligibility criteria specified in sub rule (2) within a period of one hundred and eighty days.

 

Can a Minor be a Member of OPC ?

No.

Can OPC be Converted into Private / Public Limited Company ?

No such company can convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees.

 

Can OPC be Converted into Sec. 8 Company ?

No

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