Until recently, setting up your dream company required you to have at least two shareholders. However, that’s not the case anymore! With the new Companies Act, 2013 coming into force, any aspiring entrepreneur can do this independently. Here What you need to know about this new-age concept.
A one person company also widely known as OPC Company, One Person Company is the type of business entity that is owned and operated by a single owner with limited liability protection.
Features of OPC:
1. A person shall not be eligible to incorporate more than one OPC or become nominee in more than one such company.
2. OPC is incorporated as private limited company and it is mentioned as Business name OPC) Private limited.
3. Restricts the right to transfer its shares.
4. An OPC is not allowed to carry out Non-Banking Financial Investment activities including investment in securities of corporate entity.
5. An OPC cannot be converted voluntarily into any other form of business structure until 2 years from the date of incorporation, except when threshold limit (paid up share capital) is increased beyond Rs. 50 Lakhs or its average annual turnover during the relevant period exceeds Rs.2 Crores i.e., if it crosses the threshold figures then it becomes mandatory to convert to a Private or Public limited Company within a period of Six Months on breaching the above threshold limits.
6. Foreign business owners are not allowed to register OPC Company in India.
7. There are many exemptions available to OPC as compared to Private Limited Company.
This company formation is recommended for traders, professionals and self employed.
Time duration for OPC formation: Normally it takes 5 working days to get the one person company registered in India subject to proposed company name availability approval.
