If there is only one promoterfounder, one person company opc is the best way to start a company. For converting into a private or public company one person company has to increase the number of members and directors up to 2 or minimum of 7 members and two or three directors as the case may be. This paradigm shifts from the companies act 1956, where minimum two members are required float private limited company as well as public company. Further, an opc is owned and can be managed by one person as the sole member and director. The new companies act 20 was approved by the parliament in 20. Time is a soloists most valuable asset, lonier says. Conclusion under the one person company even a single person can start a business without fear of unlimited liability no matter how risky it is. All emails from the system will be sent to this address. The business is regarded as a separate entity owned by one person. Before registering a startup company in india as a opc pvt ltd company, company name check can be checked done with companiesinn. One person company hereinafter mentioned as opc is a radical idea which came into the picture with the introduction of the companies act, 20.
A minor shall not be eligible to become a member or nominee of the one person company or can hold share with beneficial interest. Section 3 1c a company may be formed by one person by subscribing hisher name to a memorandum. Also, some suggestions have been made to make the structure of opc effective and efficient. One person company can be formed only with one person that means in contrast with other form of companies one person company can enjoy certain privileges and exemptions. In separate notices to all interested parties on march 15, the commission requested. With the implementation of the companies act, 20, a single national person can constitute a company, under the one person company. This new concept of one person company is a great initiative taken by the ministry of corporate affairs. The commission en banc on april 25 approved the guidelines on the establishment. Apr 16, 2015 according to section 2 62 of the companies act, 20, one person company opc means a company which has only one person as a member.
Copy of pan self attested for director and nominee copy of aadhar self attested for director and nominee copy of passport driving license voter id card residential proof copy of bank statement bank passbook electricity bill mob. Aug 23, 2018 students have lot of doubts with respect to opc so here we go with a concise solution. An opc limited by shares shall comply with following. One person company registration can be completed in india online and at rs. This article discusses one person company concept as a strategy to develop small. One person company rule 3 of companies incorporation. The companies act, 20 completely revolutionized corporate laws in india by introducing several new concepts that did not exist. One person company at the heart of this article lies an attempt by the author to understand. I write about small businesses doing innovative pr. An one person company incorporation is similar to private company registration, the only variation is appointment of nominee. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. One person company registration opc registration online. Conversion of an opc into public or private company. Sep 20, 20 a one person company is incorporated as a private limited company with only one person as its member.
One person company of soleproprietor and company form of business has been provided with concessional relaxed requirements under the companies act, 20. One person company as a company which has only one person as a member. Though this concept is new in india, opcs are in existence in quite few countries like china, uk, australia, singapore and pakistan etc. The business is regarded are a separate entity, but has several different owners. The concept of one person company has been included in section 2 62 of company bill india, 2011.
The concept of one person company was introduced in the indian company law. Registration for one person corporations to open next week the securities and exchange commission sec will start accepting applications for registration of a corporation with a single stockholder on may 6, following the issuance of the pertinent guidelines. This article deals with the legal framework of one person company and the issues which have arisen in respect to it. The main objective of introducing the concept of one person company is to encourage single and enthusiastic entrepreneurs. Find all complete list of one person incorporated companies in india. The concept of one person company opc allows a single person to run a company limited by shares while a sole proprietorship means an entity which is run and owned by one individual and where there is no distinction between the owner and the business. The email address is not made public and will only be used if you wish to receive a new password or wish to receive certain news or notifications by email. Section 2 62 of the companies act, 20 defines opc as the company which has only one person as a member. Students have lot of doubts with respect to opc so here we go with a concise solution. With ever changing scenario of business the new concept of one person company has been emerged as per companies act 20. Oneperson company a new business opportunity in new.
It is an unique identification number allotted to an individual who is an existing director of a company or intends to be appointed as director of a. Under the companies act of 1956 the definition of body corporate excluded from its scope a corporation sole but the act of 20 has removed this exception and come up with a new revolutionary concept i. What are the documents required for one person company. So, an opc is effectively a company that has only one shareholder as its member. A one person company is registered in the same manner as a private limited company, thereby the same provisions are followed by both. As the name suggests a single person can register as sole proprietor of a company. Now, in india, an individual can establish and run a company, called one person company opc which has been introduced with the enactment of the. For the purposes of holding board meetings, in case of a one person company which has only one director, it. One person private limited company registration in india is administered by the registrar of companiesroc in india.
Pdf relevance of one person company international journal. We bring you some of the trending tren provisions of the new companys act 20 came into stuff about one person company. However, there is no road to raise equity funding or offering the employee stock option in one person company in the early stage of the period. Sec releases draft guidelines on one person corporation the securities and exchange commission sec has released draft guidelines setting forth the process and documentary requirements for organizing a one person corporation opc. The memorandum of one person company shall indicate the name of the other person, who shall, in the event of the subscribers death or his incapacity to contract become the member of the company. One person company or single person company is new concept of company registration in india which is also known as opc company registration in india. Introduced under the companies act, 20, section 262 defines that the opc is a company which should have one person as its member. One person company one person company is a new concept in india which has been introduced by the companies act 20. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. Section 262 of companies act defines a one person company as a company that has only one person as to its member. Search by cin, roc type, directors details, address and company status as well. Steps to register a one person company authorstream. Format of aoa and moa of one person company resolved.
One person company registration is simplified with online filing and process. Introduction to one person company opc under the companies act, 20 no. The concept was introduced in the companies act of 20. The milliondollar, oneperson business unlocks strategies that will help solo entrepreneurs achieve more than they ever thought possible. One person company vs sole proprietorship vakilsearch.
Contact our experts of caonweb to know the opc registration process. Opc requires one member member refers to someone who subscribes to memorandumhas their name in the register of membersholds shares of the. Only a natural person who is an indian citizen and resident in indiashall be eligible to incorporate a one person company. Jun 25, 2011 section 31 c deals with the formation of one person company. An opc one person company as the name suggests is a company formed by a single person i. One person company registration opc registration in india. It would allow many businessmen who are desirous of establishing a registered company on their own without having to induct any other person on the board of the company and as a shareholder of the company. Exemptions available to opc under the companies act, 20. Register opc at mumbai, pune, bangalore, delhi and any city in india. What are the disadvantages of a one person company in. One person company is a new type of business entity that allows a single entrepreneur to operate a corporate entity with limited liability.
Aug 16, 2017 if there is only one promoterfounder, one person company opc is the best way to start a company. The paper attempts to explain the role, pros and cons of one person company in indian business. A hawklike focus on your most important functions as a business owner is. Ca rajesh saluja opc section 262 one person company means a company which has only one member. A opc is a type of private limited company where minimum and maximum number of members is one. The implementation of the companies act 20 an individual person can now constitute a company under the concept of one person company hereinafter mentioned as opc. One person company registration opc registration myonlineca. One person company may be either a company limited by share or a company limited by guarantee or an unlimited company. One person company is a brand new concept which gives full authority over the company to the single promoter while limiting its liability or duties to contribute to the business. A one person company needs to have minimum of one director. What are the disadvantages of a one person company in india. The introduction of one person company opc in india is a move that will encourage micro businesses and entrepreneurship with simpler legal compliances that will enable individuals to generate economic growth as well as employment opportunities. View all one person incorporated companies list in india.
A minimum of 2 directors and 2 shareholders are needed in order to register a private limited company. The atoz of one person company registration in india. Pdf relevance of one person company international journal of. 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. The concept of opc was first recommended by an expert committee constituted under the leadership of dr. Opc is one of the significant milestones of the companies act, 20, introduced to encourage selfemployment with a backbone of indias legal system. Oct 08, 2017 pr strategies for a oneperson company. The one person company opc was recently introduced as a strong improvement over the sole proprietorship opc has limited liability of its members unlike in a partnership firm.