One Person Company (OPC) – Features of OPC, Eligibility for OPC

A Single Person Business (OPC)– Government of India had actually included many brand-new concepts, brand-new assist in to support start-ups and to increase entrepreneurship. Government of India had come with many new concepts, brand-new help with to support startups and to improve entrepreneurship

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Someone Business (OPC)– An overview

As a part of this a new form of service entity One Individual Business (OPC) has actually been presented by the Business Act, 2013.

As defined by business act 2013, ‘Someone Company means a company which has just one member’

Eligibility for OPC:

As specified by the act following are the persons eligible for establishing an OPC

( 1) A naturally born Indian & local of India

( 2) Those who are born outside india and residing in India are disqualified.

( 3) Although the individual is a naturally born Indian and residing in India he/she is not qualified for this if he/she has currently opened 1 Someone company.

Features of OPC:

This is the standard idea of a One Person Company. The act has likewise said that an individual can be an investor in just one individual company at any offered time.

( 2) One Director:

Opc Should have at least of One Director, the Sole Shareholder can himself be the Sole Director.As per the Act, the overall number of directors will not be more than 15.

( 3) Election:

The Investor shall choose another individual who shall end up being the shareholders in case of death/incapacity of the initial shareholder.The requirements of being a resident Indian and person of India likewise apply to the nominee. If the individual so chosen is currently a member of another Someone Business, at the same time, by virtue of rules has to choose within 6 months which a single person company he needs to continue. On becoming member, such candidate shall choose any other individual as his candidate.

( 4) Compliance of law:

For the function of easy compliance act has actually facilitated the following:

( a) No requirement to hold yearly or extra ordinary general meetings

( b) No requirement of preparing capital in the yearly financial declarations.

( c) No requirements of signing by a company Secretary on the yearly return. It can be signed by the Director himself.

( 5) Tax matters:

According to Earnings Tax Act 1961 Someone company is under the bracket of 30% on overall income with an extra surcharge of 5% if the income exceeds 1 crore with an addition to 3% of education cess.

Some more points to be known:

( 1) Non banking monetary services:

An OPC can not carry out Non-Banking Financial investment activities including investment in securities of any body business.

( 2) Eligibility of a minor:

Minor can not become a member or candidate of the Someone Business or can hold show helpful interest.

( 3) Subsequent conversion:

If the Paid-up capital of the Company crosses Rs.50 Lakhs or the typical annual turnover during the appropriate period surpasses Rs.2 Crores, then the OPC needs to compulsorily submit necessary types with the ROC for conversion in to a Personal or Public Company. This has to be done within 6 months from the actual date of crossing the threshold limitation mentioned above.

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