One Person Company: Full Step By Step Overview

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One Person Company Full Step By Step
Overview
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Introduction

• One Person Company is as the name suggests is a
  company which has only one member.
• Section 3 catogorizes OPC as a Private Company
  for different legal purposes and with just one
  member.
• All the provisions that are linked to the private
  company are applicable to an OPC unless it is
  expressly excluded.
• As far as OPC is concerned it is true that one
  Person is a sole proprietor and his liability to
  the debtors of the Company is only restricted to
  the shareholding of the company and that his
  personal assets are never linked for the payment
  of the companys liability, this only holds true
  when the Proprietorship never happens.

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The Main Features of One Person Company (OPC)

• 1. It has one shareholder
• A person who is an Indian citizen and resident in
  India shall be eligible to incorporate a One
  Person Company.  What does the term "Resident in
  India" mean? It is a person who has stayed in
  India for a considerable period of of time, that
  means not less than 182 days that immediately
  precedes one calendar year.
• 2. Nominee for the Shareholder
• One Shareholder shall nominate another person to
  become the shareholders at times of death or
  incapacity of the original shareholder.  Such
  nominee shall give his/her consent for being
  appointed as the Nominee for being the sole
  Shareholder.  The only person eligible for being
  the sole member of a one person company is an
  Indian citizen.
• 3. Director 
• The company must then have a minimum of One
  Director and the sole shareholder can be the Sole
  Director. The Company may then proceed to have a
  maximum number of 15 directors.

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The Terms and Restrictions of OPC

• A person cannot be included more than a One
  Person Company or even become the nominee in more
  than one such company.
• A minor cannot become a member or be a nominee of
  the One Person Company or even can hold a share
  with beneficial interest.
• Incorporation and conversion of OPC into a
  company under Section 8 of the Act cannot be done
  Company not for Profit.
• It is not possible for an OPC to carry out
  Non-Banking Financial Investment activities and
  that includes investment in securities of
  any body corporate. 
• An OPC is unable to voluntarily convert into any
  kind of company unless at least two years have
  gone from the date of implementation of One
  Person Company.
• The only exception is the threshold limit (paid
  up share capital) which is increased beyond Rs.50
  Lakhs or its average annual turnover exceeds Rs.2
  Crores, during the relevant period.
• If the paid-up capital of the Company exceeds
  Rs.50 Lakhs or the average annual turnover at the
  time exceeds Rs.2 Crores, then the OPC need to
  invariably file forms with the ROC for conversion
  into a Private or Public Company, which if it
  breaches above threshold limits within a period
  of six months.

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The Terms and Restrictions of OPC

• How to Incorporate One Person Company (OPC)- A
  Few Guidelines
• For the proposed Director(s) one has to obtain
  digital signature certificate DSC.
• For the proposed director(s) one has to obtain
  Director Identification Number (DIN).
• Select a suitable company name, and for the
  availability of a name, one can make
  an application to the Ministry of Corporate
  Office. 
• Draft both Memorandum of Association (MOA)and
  Articles of Association ( AOA)
• Sign and file different documents which include
  MOA AOA with the Registrar of Companies
  electronically. 
• Payment of the requisite fee to Ministry of
  Corporate Affairs and also for Stamp Duty.
• A perusal of documents at Registrar of Companies
  ROC with great details.
• Provide of receipt of a certificate of
  Registration/Incorporation from ROC.

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The Terms and Restrictions of OPC

• How to Incorporate One Person Company (OPC)- A
  Few Guidelines
• For the proposed Director(s) one has to obtain
  digital signature certificate DSC.
• For the proposed director(s) one has to obtain
  Director Identification Number (DIN).
• Select a suitable company name, and for the
  availability of a name, one can make
  an application to the Ministry of Corporate
  Office. 
• Draft both Memorandum of Association (MOA)and
  Articles of Association ( AOA)
• Sign and file different documents which include
  MOA AOA with the Registrar of Companies
  electronically. 
• Payment of the requisite fee to Ministry of
  Corporate Affairs and also for Stamp Duty.
• A perusal of documents at Registrar of Companies
  ROC with great details.
• Provide of receipt of a certificate of
  Registration/Incorporation from ROC.

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Contact Us

• Chennai Main Office
• 10/27, 45th Street 9th Avenue,
• Ashok Nagar Chennai - 600083.
• Phone [phone]
• E-Mail info_at_vramaratnam.com
• Website http//www.vramaratnam.com
• Chennai Branch Office
• 26, Ground Floor, 4th Street,
• Abhiramapuram,
• Chennai - 600 018.

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