One Person Company fully satisfaction Companies Act 2013
Guys, if you want to start a big business and grow your business from a small one, you have to build a company. There are many options for him to start his business, such as LLP, Private Limited Company, Partnership Firm, Public Limited Company.
But today we will talk about one person company, even a single person can start this company, and the benefits of a private limited company can often be taken advantage of. In this post we will talk about what are the features of one person company and what kind of person should be made one person company.
What is the concept of one person company?
A one person company is a company that a single person can start and start his own business. And it cannot be more than one shareholder or owner, because the one person in the company is the shareholder.
In the past, when a single person was registering a company, that person had only one option, the Proprietorship firm. There were a lot of problems registering a proprietorship firm, and the advantage was that you didn’t have to register a company there, so you could do your job as an individual. But the problem was that it had no limited liability. One Person Company has been started to overcome these problems.
You can think of a one person company as a concept between a private limited company and a proprietorship firm. Almost all the advantages of a private limited company and the flexibility of a proprietorship firm have been given to a one person company.
Limited liability is also applicable in one person company. Here your liability is limited to the company and there is no liability on your personal assets. If you take a loan in the name of the company, only the company has liability. As in LLP and PVT. LTD. Is in the company.
If you create a one person company you become the sole shareholder of that company but you have to give a Nominee name. Because if the shareholder of that company dies, then the nominee becomes the owner of that company at that time.
Here your minimum director is one because the one who owns it has to be the director. Maximum Director 15 has been kept. If you want to increase the number of directors, you can pass the board resolution and make more than 15 directors.
Since the nominee in a one-person company becomes his, it is up to him to decide whether or not to continue the company. Therefore, there is no Perpetual Succession here.
Perpetual Succession means as we said in LLP or Private Limited Company that even if there is no shareholder, the company will not close but only the shareholder will change. But if he wants to be a nominee here, he can continue or disconnect the company first.
OPC can start
Any Indian citizen can start only one person company. And the nominee must also be an Indian citizen. And a person cannot start more than one one person company, and a nominee cannot be a nominee in more than one one person company.
Here the minimum authorized share capital has been kept at one lakh, no requirement of minimum paid of capital has been kept as in private limited company. Private Limited Company is also written at the end of the name of One Person Company, such as XYZ Private Limited. Here also you are given the Director Identification Number which we call DIN, you have to reserve the name of the company. Here you will get PAN in the name of the company, you will get TAN, and the Compliance of One Person Company is less.
OPC Converted Pvt. ltd.
You can do this if you want to convert a one person company to a private limited company later, but this is only possible when the registration of your one person company is two years old, you cannot convert a one person company to a private limited company before two years.
For example, Companies Act 2013 is applicable on private limited companies. Companies Act 2013 is also applicable on one person companies. Most of the rules and regulations are applicable to Advantage Private Limited Company, all of them are applicable to One Person Company.
If you start a business and it is alone then you can start a one person company. And later when the company grows slowly and your investor needs it, you can transfer one person company to a private limited company.
If you want to start a business alone and you want to start a company, you can register a One Person company. Here you will get the same benefits as a private limited company but not as much as a private limited company. So OPC is the best for a single person to start a business.
- What is a Private limited Company | Full Details
- Limited Liability Partnership(LLP): Basic Guide
- Public limited company Definition – Full Explain
- One Person Company (OPC): Definition, Features, Formation etc.