One Person Company – A Concept for New Age Business Owners in India

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One Person Company – A Concept for New Age Business Owners in India

About the One Person Company (OPC), a new concept has been introduced within the Companies Act 2013. During a private company, at least two directors and some members are required whereas during a public company, at least three directors and at least seven members are required. One person could not previously include a corporation. What is your exact need?. Here we discuss about One Person Company – A Concept for New Age Business Owners in India in this article.

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But now as per Section 2 (62) of the Companies Act 2013, a corporation is always formed with only 1 director and 1 member. This is a type of corporation where compliance requirements are lower than those of an individual company.

Definition of One Person Company

Section 2 (62) of the Companies Act defines an individual company as a corporation in which there is only one person on its member. Moreover, the members of the corporation are nothing but the subscribers of its memorandum association, or its shareholders. Therefore, an OPC is effectively a corporation that has only one shareholder as its member.

Such companies are usually formed when there is only one founder / promoter for the business. Entrepreneurs who want to do business are in the early stages, as it is better to create an One person company registration in Coimbatore rather than a sole proprietorship business due to the many benefits offered by OPC.

OPC and its formation

An One Person Company Registration is incorporated as Personal Limited, where there is only one member and is prohibited from inviting the general public to subscribe to corporate securities.

The main features of OPC include the following:

OPCs are often formed under any of the following categories.

Guarantee Company is limited by guarantee.

The Company is limited by shares

OPCs limited by shares will meet the following requirements:

Ll will have a minimum paid up capital of INR 1 lakh

Its prohibits proper transfer of its shares

Restricts any public invitations to subscribe to Public Corporate Securities

One person company registration in Bangalore needs to provide legal identification by clarifying the reputation under which business activities can be continued. The words One person company registration should be below the corporate name, wherever the name is tight, used or engraved.

The OPC member is required to subscribe with the written consent of the nominee, and to file with the Registrar of Companies (ROC). In case of death or other disability this nominee will become a member of an One Person Company registration. A member of the OPC may at any time change the name of the notice giving notice to the ROC. Due to the death of the member, the nominee is automatically entitled to all shares and liabilities of the One person company registration.

Exemptions granted to at least one person company – Legal provisions.

One person company registration has certain privileges and exemptions that are not available to non-public companies. Such exemptions are listed for your ready reference:

Signatures on Annual Compensation – Section 92 of the Business Act, 2013

It is provided in section in of the Business Act, 201 of 1 that in the case of an One person company registration, the annual compensation will be signed by the corporate secretary or where there is no company secretary, then by the corporate director.

Planning of Annual General Meetings – Section 122 of the Business Act, 2013

Section 122 (1) of the Business Act, 2013 provides that the provisions of S.98, S.100 to S.1111 (including both) do not apply to at least one Person company registration in Hyderabad. Therefore, see the general meetings special provisions, special general meeting and convening for the general meeting at least one person does not apply to the company. However, to meet the requirements of S.114 of the Business Act, 201 of, where a transaction must be made by standard or special resolution at the annual general meeting of a business or other general meeting of the corporation, it shall be if a resolution is suggested by a member of the corporation and minutes. That’s enough if entered inside the book, U.S. 118 is required to be maintained and has the signature and date by the member and such date shall be deemed to be the date of the meeting under the requirements. Companies Act, 2013.

Board Meetings and Directors – Sections 149, 152 and 173 of the Act

One person must be a director in the company. It can have a maximum of 15 directors, which can be increased by passing a special resolution like any other company. For the requirements of holding board meetings, One person company registration which has only one director will be properly complied with if all the resolutions to be passed by such corporation are entered in the committee meeting during the written record – signed and dated by the member and such date Company Act, 201. The date of meeting of the committee shall be deemed to be for all the requirements under.

Signatures on Financial Statements – Sections 134 and 137 of the Act

The One person company registration will file a copy of the financial statements with the ROC along with all the documents properly adopted by its members, such as must be attached to such a budget, within 180 days after the end of the financial year, along with the income statements. The budget will be signed by only one director and hence the annual return will be signed by the corporate secretary and the director, and in that case only by the director if the company is not the secretary.

Contract by One Person Company – Section 193 of the Act

The new Companies Act, 2013 pays special attention to contracts that can be entered into by One Person Company registration.

If the corporate fails to claim the provisions for providing information to the ROC, it will be liable for a penalty of not more than twenty thousand rupees but up to one lakh rupees and hence the jail term may increase to six months.

Conclusion

One Person Company Registration is not accepted in India with open arms as it is more technical and new concept. The OPC provides legal protection by allowing small entrepreneurs to move from the organized sector to the unorganized sector. This concept opens the way for small traders who wanted to open their own company, but could not because they did not open the company of another director or shareholder. This is believed to be a revolutionary move by the unorganized sector.