What do you mean by One Person Company (OPC)?



The idea of One Person Company [OPC] is another form of business, presented by The Companies Act, 2013 [No.18 of 2013], in this way empowering Entrepreneur(s) carrying on the business in the Sole-Proprietor type of business to go into a Corporate Framework. One Person Company is a hybrid of Sole-Proprietor and Company type of business, and has been given concessional/loosened up necessities under the Act. Now let’s see what the main characteristics of the one person company are,
1)     Only One Shareholder- Just a natural person, who is an Indian citizen and resident in in India, will be qualified to join a One Person Company.
Clarification: The expression "Resident in India" implies a man who has remained in India for a time of at the very least 182 days amid the quickly going before one calendar year.
2)     Nominee for the Shareholder- the Shareholder shall nominate another person who will end up being the investors if there should be an occurrence of death/insufficiency of the first investor. Such nominee will give his/her assent and such assent for being delegated as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and occupant in India, will be a nominee one for the sole individual from a One Person Company.
3)     Director - Must have at least One Director, the Sole Shareholder would himself be able to be the Sole Director. The Company may have a most extreme number of 15 directors.
The One Person Company (OPC) was as of late presented as a solid change over the sole proprietorship. It gives a solitary promoter full control over the organization while constraining his/her obligation to commitments to the business. This individual will be the main director and investor (there is a nominee director, however with no power until the point that the original director is incapable of entering into contract). So there's no way of raising value subsidizing or offering employee stock opportunities. Besides, if an OPC hits an average three-year turnover of over Rs. 2crore or has a paid-up capital of over Rs. 50 lakh, it must be transformed into a private limited company or public limited company within six months.
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