Features of OPC
Features of OPC
One person:
The most distinguished and striking feature of an OPC is that the fact that it's only:
- One Director
- One shareholder - both rolled into one.
This is the foremost grandeur of an OPC. Since it's just one Director, he exercises complete management over the functioning of the enterprise. He is additionally the only single shareholder. It will however have a maximum of fifteen directors. Member/Shareholder of the One Person Company acts as initial Director, till the company appoints Directors.
Nominee
The Act clearly prescribes that the Director of the company shall appoint a nominee to take charge of the company when the Director/member is disabled or sick. The candidate shall be a natural person, Indian citizen and resident in India. The name of the person should be provided in the Memorandum.
The naming will however solely be done with the prior consent of the candidate in writing. The reason being that he's accepting to take on the corporate with all its liabilities as well; the registrar needs to ensure that the nominee has voluntarily consented thereto. The written consent should be filed with the registrar at the time of incorporation together with the Articles and also the memorandum.
Provisions are provided for the nominee or other person to withdraw his consent at any time. Further, the member/Shareholder of OPC could replace or change the nominee/other person at any time, by giving notice to the opposite person and intimate the same to Company. Then the corporate ought to intimate the same to the Registrar
Minimum paid up capital
It should have a minimum of Rs. One Lakh for starting up the business.
Style of Writing Name of Company
One Person Company is needed to be mentioned in brackets below the name of such name of the company, wherever its name is written, affixed or engraved.
Meetings
At least one meeting of Board in every half a twelvemonth and also the gap between two conferences mustn't be less than ninety days. However, no committee meeting is needed, if there's just one Director. If there's any business that is needed to be transacted during a committee meeting and OPC has only one Director, then it'll be simple if the resolution by such Director is entered within the minutes-book and is signed and dated by such Director and such date shall be taken because the date of committee meeting.
There is no requirement of holding AGM, but any business that is required to be transacted at an AGM or other general meeting.
Financial Statements
Financial statements of OPC might not embrace the cash flow Statement. It should solely embrace balance sheet, Profit & Loss and any instructive note, as a part of the same in contrast to other companies; here it's to be signed by just one Director a duplicate of the financial statements is to be filed with the Registrar of firms, within one hundred eighty days from the closure of the financial year.
Annual return
Annual return is needed to be prepared by OPC and be signed by the company Secretary (CS) of Company and when there is no company secretary, by any Director of Company. However, it's not clear, whether the same is needed to be filed with ROC, as the time limit of filing return is connected to the date of holding AGM.
