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Presention On: One Person Company (OPC)
Presention On: One Person Company (OPC)
Presention On: One Person Company (OPC)
Privileges to OPC
Incorporation of OPC
conclusion
intoduction
Should indicate nominee member in the MOA, who shall become member in the
event of death/incapacity of sole member.
The member and nominee should be natural person, Indian Citizen and resident in
India.
OPC loss its status if paid capital exceeds Rs. 50 lakhs or average annual turnover is more
than 2 crores in 3 immediate preceding consecutive years.
OPC is required to specifically mention the word “one person company” below the name
wherever it is used.
Limited Liability
The annual return of a OPC signed by the company secretary (C.S.), or where
there is no (C.S.) , by the director of the company.
The provisions of Section 98 and Sections 100 to 111 (both inclusive), relating to
holding of general meetings, shall not apply to a OPC.
Must have at least one director and conduct board meeting once within each half
of the calendar year
Privileges available to opc
No Annual General meeting is required, it shall be sufficient if the
resolution is communicated by the member to the company and entered in
the minutes-book, which will be signed and dated by the member.
{Sec.96(1)&122(3)}
Select suitable Company Name, and make an application Form INC -1 to the
Ministry of Corporate Affairs for availability of name
Sign and file various documents including MOA & AOA with the Registrar
of Companies electronically
Payment of Requisite fee to Ministry of Corporate Affairs and also Stamp Duty
File copy of the special resolution with the R.O.C. in Form No. M.G.T . 14 within 30 days from the
date of passing such resolution.
File an application in Form No.INC.6 for its conversion into One Person Company a long required
documents.
OPC convert itself, within 6 months from fulfillment of any of the above conditions, into
either a Private or Public company inaccordancewiththeprovisionsofsection18oftheAct.
2. File form No. INC – 5 to ROC, within 60 days from the date ofexceedingtheabovelimit.
Few compliance
The One Person Company concept holds a bright future for small
traders, entrepreneurs with low risk taking capacity, artisans and
other service providers.
Conclusion
An OPC as a business structure doesn’t seem efficient from tax
perspective as an OPC would be treated as a company and be
subject to a higher rate of tax compared to a Sole Proprietorship.
Since an OPC is a company, there would be an incidence of tax
(dividend distribution tax) while distribution of dividend.