One person company incorporation and formation

1. ONE PERSON COMPANY

2. COMPANIES ACT 2013
ONE PERSON COMPANY
Definition :
* A company which has only one person as a member,
* It is also consider as a private company.
Eligibility :
* Indian citizen,
* Resident in india shall be eligible to incorporate a OPC,
* And shall be a nominee for the sole member of a OPC.
Conditions :
The following are the conditions in formations of a OPC :
* No person shall be eligible to incorporate more than a one person
company (or) become nominee in more than such company.
* Minor cannot shall become member or nominee of the one person
company or can hold share with beneficial interest.
* An OPC cannot be incorporated or converted into a company under
section 8 of the act.
* An OPC cannot carry out non-banking financial investment activities
including investments in securities of any body corporate.
* No such company can convert voluntarily into any kind of company
unlesss two years have expired from the date of incorporation of OPC, except
- threshold limit of paid up share capital is rs. 50 lakh.

3. Benefits of one person company :
* Limited liability protection,
* Better status and recognition,
* Complete control to the owner,
* Good to start ,
* Easy to get loans,
* Flexible tax and more savings,
* Easy to manage.
Nominee :
* The memorandum of OPC shall indicate the name of other person as nominee
in form no INC.2.
- The prior written consent of the other person shall be obtained in the form
no INC.3.
- If the subscriber’s death or his incapacity to contract, the written consent of
such person shall also be filed with the registrar at the time of incorporation of OPC
along with memorandum and articles of the company.
* The other person may withdraw his consent by giving a notice in writing to such
sole member.
- The sole member shall nominate another person as nominee within 15 days
of the notice of the withdrawal.
- The sole member shall get the written consent from the new nominee in
form no INC 3.
- File with registrar, a notice of such changes in form no INC.4 along with
fees.

4. * In case of death or incapacity (or) ceases to be the member in the event of
death of incapacity to contract of nominee :
- The sole member may nominate another person after obtaining the prior
consent of such another person in form no INC.3.
- The company shall, on receipt of such intimation, file with the registrar, a
notice of such changes in form no INC.4 along with fees.
- The written consent of new nominee in form no INC.3 within 30 days of
such receipt of intimation of changes.
Penalty :
If a OPC or any Officer of such company contravenes any of the provision of
these rules, shall be punishable with the fine of rs.5000, if default is continue rs.500 for
every day.
Share certificate :
* Every share certificate shall be issued and the seal, if any, which shall be
affixed in the presence of and signed by one director or authorised person and
company secretary.
* In case of the OPC does not have a common seal, the share certificate shall be
signed by the person in the presence of whom the seal is required to be affixed in this
proviso.
Management and administration :
The following provision shall not apply to a one person company-

5. Sections Particular
98 Power of tribunal to call meeting of members etc.,
100 Calling of extraordinary general meeting;
101 Notice of meeting;
102 Statement to be annexed to notice;
103 Quorum for meeting;
104 Chairman of meeting;
105 Proxies;
106 Restriction on voting rights;
107 Voting by show of hands;
108 Voting through electronic means;
109 Demand for poll;
110 Postal ballot;
111 Circulation of members resolution.

6. Annual return :
The annual return of an OPC shall be signed by the company secretary or
where there is no company secretary, by the director of the company.
Postal ballot :
OPC is not required to transact any business through postal ballot.
Thank you.