The concept of one Person Company in India was introduced through the companies’ act 2013 to support the entrepreneurs who on their own are capable of starting a venture by allowing them to create a single entry economic entity. One of the biggest advantages of OPC is that there can be only one member in an OPC while minimum of two members are required in incorporating and maintaining a private limited company or a limited liability partnership. Similar to a company, an OPC is a separate legal entity from its promoter offering limited liability protecting to its sole shareholder, while having continuity of business and being easy to incorporate. For instance, every OPC must nominate a nominee director in the MOA and AOA of the company who will become the owner of the OPC in the case of sole director is disabled. Also a one person company must be converted into a private limited company if it crosses an annual of ₹2 crores and must file the audited financial statements with ministry of corporate affairs at the end of each financial year like all types of companies.
STEPS TO BE FOLLOWED FOR REGISTRATION ARE:
No. As per the Act, Only Indian born citizens can form a One Person Company. Non-resident Indians or individuals who do not reside in India for over 182 days cannot incorporate a OPC.
No, FDI is not allowed for One Person Company, if it is, then it will lose its One Person Company status.
As per the Act, Nominee of one OPC, cannot be a nominee of another OPC. In this event, the Nominee has to withdraw his membership from either of the OPCs within one hundred and eighty days.
As per the Act, the average annual turnover during the relevant period should not exceed Rs.2 Crores. If it exceeds, then the company automatically get converted to a Private Limited Company.
The Act has not made any restriction for a One Person Company to become a member of another Private Limited Company.
As per the provisions of the Act, The OPC cannot carry business of Non Banking Financial Investment activity including investment in securities of any corporate.
A One person company can be converted to a Public Limited Company; however a public limited company cannot be converted to an OPC
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