Sunday, February 21

All you wanted to know about One Person Company (OPC) under Companies Act 2013

The Companies Act 2013 has promoted structured business organisation even for individuals. Why run an uncontrolled, unregulated sole proprietorship business when you can be guided and recognised by an Act?

Even if you are an individual, you can now create and run a company under Companies Act 2013 - a ONE PERSON COMPANY. 

Section 2(62) defines One Person Company as a company which has only one person as a member.

Here are some things that you should know about One Person Company:
  • One Person Company (OPC) is a private company
     
  • The said member (shareholder) should be a natural person.
  • The words “One Person Company” shall be mentioned in brackets below the name of the company, wherever it is printed, affixed or engraved [Section 12(3) second proviso].
  • The memorandum of OPC shall indicate the name of the person who shall become the member of the company in the event of the death of the subscriber. The name of such person can also be changed by the member [Section 3(1)(c) first proviso].
  • No person shall be eligible to incorporate more than one OPC or become nominee in more than one such company.
  • No minor shall become member or nominee of OPC or can hold shares with beneficial interest.
  • The OPC shall not be required to hold annual general meeting [Section 96(1)].
  • The financial statement of a OPC may not include the cash flow statement [Section 2(40)] proviso.
  • Where there is only one director on the Board of directors of a OPC, for any business required to be transacted at a meeting of the Board of directors of the OPC, it shall be sufficient if the resolution is entered in the minutes book and signed and dated by such director. Such date shall be deemed to be the date of the meeting of the Board of directors for all purposes under the Act [Section 122(4)].
  • The provisions of Section 98 and Sections 100 to 111 (both inclusive) dealing with meetings of members do not apply to a OPC.

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