Incorporate a One Person Company Registration in Coimbatore
Incorporate a one person company in India
The One Person Company (OPC), which can include a company with a single member. It has all the protections and obligations available to a private company, the number of shareholders required to merge a company. Once the company has achieved a certain turnover level, OPC should be transformed into a private limited company. The promoter may choose to change the company voluntarily after the company has been in operation for a certain period of time. The company director must have a director identification number and the subscriber must take a digital signature for OPC registration. The process of merging is online and will take 10-15 working days from the date you submit your complete documents to us and will be subject to the availability of the proposed name. What is your exact need?. Here we discuss about Incorporate a One Person Company Registration in Coimbatore in this article.
Terms and Limitations of the OPC
An individual may not be eligible to join more than one company or become a nominee in more than one such company.
The Minor One Person cannot become a member or nominee in the Company or hold a stake with a beneficial interest.
OPC cannot be incorporated into a company under Section 8 of the Act.
OPC does not conduct non-banking financial investment activities, including investing in the securities of any body corporate.
OPC cannot voluntarily convert to any type of company until the expiry of two years from the date of incorporation of one person company, exceeding the threshold limit (paid up share capital) of Rs.50 lakhs or the corresponding average turnover of Rs. 2 crore, i.e. if the company’s paid-up capital exceeds Rs. 50 lakhs or the average annual turnover exceeds Rs.
Steps to include One Person Company (OPC)
Obtain a Digital Signature Certificate [DSC] of the Director (s).
Get the Director Identification Number [DIN] for the proposed Director (s).
Select the appropriate company name and apply to the Ministry of Corporate Office for name availability.
Draft Memorandum of Association and Articles of Association
Sign and file various documents electronically with the Registrar of Companies, including MOA & AOA.
Payment of fees and stamp duty required by the Ministry of Corporate Affairs.
Examination of documents at the Registrar of Companies [ROC].
Receipt of Registration / Incorporation Certificate from ROC.
Benefits of one Person Company
1. Single shareholder:
Only Indian citizen and natural person residing in India is eligible to join One Person Company. Description: The term “Residence in India” means a person who has been in India for less than 182 days immediately in a calendar year.
2. Nominee for shareholder:
In case of death / incapacity of the original shareholder the shareholder has to nominate another person. Such nominee must give his / her consent and consent to be nominated by the sole shareholder. Only an Indian citizen and a natural person residing in India should be the nominee for the sole member of the One Person Company.
There must be at least one director, the sole shareholder may be the sole director. The company may have a maximum of 15 directors.
If an individual is limited by company shares or guarantees, enters into an agreement with the sole member of the company who is the director of the company, if the company is not in writing, the terms of the agreement or offer must be confirmed in a memorandum or recorded within minutes of the first meeting of the board of directors of the company held after entering into the agreement. This does not apply to contracts entered into by the company in the general course of its business. The Company shall notify the Registrar of each contract entered into by the Company and shall record within fifteen days the approval of the Board of Directors within minutes of the meeting of its Directors.
One person helps the company’s capital / turnover without exceeding the specified limits
When the paid-up share capital of a one-person company exceeds Rs. 50 lakhs and its annual turnover exceeds Rs. 2 crores during the relevant period, it ceases to be eligible to continue as a one-person company.
An individual organization to transform itself beyond the above limits
If the paid-up capital / turnover exceeds the prescribed limits, it is required to change itself, within six months from the date of raising its paid-up share capital above Rs.50 lakhs or on the last day. If its average annual turnover exceeds two crore rupees during the relevant period, a private company with at least two members and two directors or a public company with at least seven members and three directors is required by section 18 of the Act.
Memorandum and change of articles
The One Person Company must change its memorandum and articles by adopting a resolution to influence the conversion and to make the necessary changes random.
Within sixty days from the date on which the One Person Company applies, notice must be given to the Registrar on Form No.INC.5 stating that it has ceased to be a One Person Company and now needs to change itself. A private company or public company due to the share capital or average annual turnover paid in excess of the entry limit.
Penalty for default
If any officer of One Person Company or One Person Company violates the provisions of these Regulations, any officer of One Person Company or One Person Company shall be liable to a fine not exceeding ten thousand rupees and another fine. For a thousand rupees every day after the first such violation continues.
The main reason for choosing One Person Company (OPC) registration is that the giver has a business idea that needs to be represented in a corporate format and the idea is that a single person will have limited resources at their disposal. An OPC company can have more than one director, but the shareholder should not be more than one and should not allow any person to include more than one person companies.
By merging with OPC, the Company will receive benefits at Banking Point through private limited companies, while one-person companies will receive banking loans, credit eligibility and limited liability company benefits.