Mandatory conversion to Private Limited or Public Limited
To Maintain this One Person company, the share capital limitation of fifty lakh rupees and not exceed more than two core rupees in the business undertaking. Suppose, is it occurred, it shall be required to modify it to a private or Public Limited Company within the time period of six months. An OPC has certain opportunities and advantages which are not available to private companies. The provisions related meetings like, General Meetings, Extra Ordinary General Meeting and Notice Convening to General Meeting are not relevant for One Person Company. But the OPC will offer all benefits to its businessman as similar to the private limited company. It can access credits, bank loans, limited liability, legal protection for business, get into market etc. But all must be done with a single registration. An individual can start only one company underthe name of the OPC.
Proposed director & Shareholder - Indian Citizen:
- PAN Card
- Aadhar Card.
- Proof for Address – Bank Statement or Telephone Bill or EB or Mobile Bill (Latest)
- Passport Size Photo.
Register Office documents:
- If the Office is rental, rental agreement is inevitable
- Electricity bill (Not more than two months old required to be submitted)
- A Occupant needs to provide a No Objection Certificate from landlord to operate the business (NOC) if not rented.
Salient features of One Person Company:
- It is a legal entity different from its members. It can hold property and borrow money etc. as a natural person.
- Small investors can form a company individually who shall be the promoter, shareholder and director.
- Company form of entity will have a perpetual succession, continue forever.
- Very less legal compliance and corporate governance requirement
- The shareholders of the One Person Company identify a nominee to replace the member in case of death disability.
- There is no restriction on the capital requirement for forming One Person Company limited company (As amended by the act) investors can form One Person Company with minimum capital required.
- Name of the company should carry the words “OPC” in order to identify the entity.
- One director shall be the minimum number of directors required to form a board
- Concession is being given to the OPC to hold a minimum number of board meetings and annual general meeting.
- OPC Company will become Public or Private limited Company if the share capital of the OPC exceeds RS.50 lakhs or annual turnover of the company exceeds Rs.200 lakhs consecutively for the last three financial years