One person company (OPC) means a company formed with only one person as a member, unlike the traditional manner of having at least two members.
The Companies Act, 2013 introduced a new form of business, which is a hybrid version of Sole-proprietorship and Company, to provide sole proprietors with an opportunity to enter into a corporate world. It is treated as a private company only having a separate legal entity and limited liability. Every one person company shall have to at least hold one meeting of the Board of Directors in each half of a calendar year and the gap between the two meetings is not less than ninety days. The concept of OPC is not alien to the world.
Compulsory Conversion of One Person Company (OPC) to Private Limited Company is required in case a One Person Company meets the below parameters :
In the above case, the One Person Company shall be mandatorily required to convert itself into either a private or a public company within Six Months.
It is very easy to register this type of business as very few documents are needed. The required documents include:
Registration of One Person Company takes the shortest time and can be completed within a min. of 7-10 working days. Despite registration taking the shortest time possible, this solely depends on government procedures and approvals during the time of your registration.
The Government’s registration fee starts at Rs.1700 while professional fees start at Rs.7500 and the variance would depend based on the type of business, number of employees and location of the business and even the requirements to be met while registering your particular business.
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