Description
The new company act has created an entirely new business structure - One Person Company (OPC) An OPC has only one member and can be fully functional with a minimum of one director. An OPC will essentially have the characteristic of a Private Limited Company, but with lesser compliances requirements. Although the OPC model is a new concept in India, it has been working successfully in developed nation since a long time. Traditionally any for profit business from other than a sole proprietorship requires more than one members. Similarly, a private company also requires more than at least two members. In such addition, how did single addition single fonder or promoters start a company in India . There is a simple workaround which was used by founders/promoters - the company would typically issue one share to a relative of the promoter (for example their father, mother spouse etc). So, that the minimum requirement of two person was satisfied. Having additional shareholder with nominal share did not impact the business commercially. STRIKING FEATURES OF ONE PERSON COMPANY Features of One Person Company (OPC) The following are the important features of the One Person Company (OPC) One Person Company is one of the type of Company on the basis of number of members only One Person Company has only one person as a member or as a shareholder. One Person Company is a Private Company Minimum paid up share capital of One Person Company is one Lakh Rupees (Rs. 1,00,000) One Person Company may be either a Company limited by share or a Company limited by guarantee / an unlimited Company The words "One Person Company" should be mentioned in brackets below the name of One Person Company One Person Company shall indicate the name of the nominee or other person in the memorandum, with his prior written consent The written consent above, can be filed with the Registrar at the time of incorporation of the
ONE PERSON COMPANY
