One Person Company
| Market Price: | |
|---|---|
| Filing CA Price: | ₹6000/- excl. GST |
| ₹7080/- incl. GST | |
| You Save: | ₹4000/- (40%) |
| Complete By: | within 7 days from payment |
OPC is the legal system is a move that would encourage corporatization of micro businesses and entrepreneurship with a simpler legal regime so that the small entrepreneur is not compelled to devote considerable time, energy and resources on complex legal compliances. This will not only enable individual capabilities to contribute economic growth, but also generate employment opportunity. One Person Company of sole-proprietor and company form of business has been provided with concessional /relaxed requirements under the Companies Act, 2013. With the implementation of the Companies Act, 2013, a single national person can constitute a Company, under the One Person Company (OPC) concept.
This classification which included OPCs was:
i. On the basis of size
a. Small companies
b. Other Companies
ii. On the basis of number of members:
a. One person company
b. Private companies
c. Public companies
One Person Company (OPC) 3
iii. On the basis of control
a. Holding companies
b. Subsidiary companies
c. Associate companies
iv. On the basis of liability:
a. Limitedby shares; and
b. by guarantee (with or without share capital)
c. Unlimited
v. On the basis of manner of access to capital:
a. Listed companies
b. Un-listed companies
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Impact of OPC in Indian Entrepreneurship
The concept of OPC is still in its nascent stages in India and would require some more time to mature and to be fully accepted by the business world. With passage of time, the OPC mode of business organisation is all set to become the most preferred form of business organization specially for small entrepreneurs. The benefits emanating from this concept are many, to name a few –
- Minimal paper work and compliances
- Ability to form a separate legal entity with just one member
- Provision for conversion to other types of legal entities by induction of more members and amendment in the Memorandum of Association.
The One Person Company concept holds a bright future for small traders, entrepreneurs with low risk taking capacity, artisans and other service providers.
The OPC would act as a launch pad for such entrepreneurs to showcase their capabilities in the global arena.
The counterparts of Indian OPCs in Europe, United States and Australia have resulted in further strengthening of the economies in the respective countries. OPCs in India are aimed at structured, organised business units, having a separate legal entity ultimately playing a crucial role in further strengthening of the Indian economy.
Salient features of OPC
The salient features of OPC are:
- Desire for personal freedom that allows the Professional skilled person to adopt the business of his choice.
- Personality driven passion and implementation of a business plan.
- The desire of the entrepreneurial person to take extra risk and willingness to take additional responsibility.
- Personal commitment to the business which is a sole idea of the person and close to his heart.
- It is run by individuals yet OPCs are a separate legal entity similar to that of any registered corporate.
- A One Person Company is incorporated as a private limited company.
- It must have only one member at any point of time and may have only one director.
- The member and nominee should be natural persons, Indian Citizens and resident in India. The term “resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
- One person cannot incorporate more than one OPC or become nominee in more than one OPC.
- If a member of OPC becomes a member in another OPC by virtue of his being nominee in that OPC then within 180 days he shall have to meet the eligibility criteria of being Member in one OPC.
