ONE PERSON COMPANY

OPC defines as One Person Company under the Companies Act 2013, in which one person as a member of the company. OPC defines that only one person is the shareholder of the company. Most of the businesses which are in the initials stage generally formed One Person Company instead of Sole proprietorship because most of the advantages provides to the one person Company. Further while forming the one person company the name of the company should end with the word XYZ (OPC) PRIVATE LIMITED.

FEATURES OF ONE PERSON COMPANY

1. One person company defines some of the features which are as defines as under:

2 Only one person can form the company for any legal purpose as a Private company.

3. One person company only has one member/ shareholder other than private company.

4. Under One Person Company the member of the company has to define the nominee of the company which is not required under the private company.

5. Under One Person Company, one single shareholder, upon the death of the member his nominee has the right to decide whether he want to become the shareholder or member of the company or not, the concept of perpetual succession not follow under the One person company.

6. One person company has the minimum one director and maximum limit of directors is 15.

7. Under the companies Act, 2013 no limit of paid up capital has been described.

Some of the several benefits and exemption provided to the One person company while other companies does not have.

FORMATION OF ONE PERSON COMPANY

While forming the one person company, the person who become the member of the company his name has been subscribed under the memorandum of the company. The memorandum of the company must state the name of the nominee who will become the company’s sole shareholder after the death of the member or the member incapable to enter into contract. The consent of the nominee shall be filed to Registrar of companies along with the Incorporation Documents.

BENEFITS OF ONE PERSON COMPANY

Some of the benefits provided to the One person company defines as under:

1. One person company not required to hold Annual General Meeting.

2. Financial statement of the one person company not required to include the cash flow statement.

3. Annual return of the One person company can only be sign by the directors of the company, not mandatory to be sign by the company secretary of the company.

4. Independent director regulation does not lie under the One person company.

5. Regulations related to meeting and Quorum does not apply under the One person company.

6. One person company can pay more salary to the directors as compare to other companies.

MEMBERSHIP IN ONE PERSON COMPANY

Only the natural person who are Indian citizen are eligible to form the One person company and the nominee who give their consent should also have the Indian citizen or resident to form the One person company. Further the Minor cannot become the shareholder or the nominee of the One person company.

OPC COMPLIANCES

Compliances and the annual filling of the one person company is similar to the Private company or any other similar form of business. One person company is mandatory required complying with the compliances provided under the Income tax act and the companies act.

Compliances which are related to the Income Tax return filed under the department of Income Tax as well as annual filling filed under the Ministry of the corporate Affairs. Other compliances includes GST regulation, PF, ESI and other and will vary depends upon the business, turnover, number of the employees.

One person company has covered the following compliances which are as describes:

• MGT 7 form has to be filed for the Annual return filling.
• To disclose the financial statement and financial affairs of the company AOC 4 has to be filed to the registrar of companies.
• To file the Income tax return ITR 6 has to be filed properly.
• If there is any disclosure of interest by the directors MBP 1 form has to be filed.
• Board meeting of the company should be held and the time gap between two board meetings should be 6 months each.
• ADT 1 form has to be filed for the appointment of the auditor.

DOCUMENTS REQUIRED FOR THE ANNUAL COMPLIANCES OF ONE PERSON COMPANY

At the time of MGT 7 filling:

1. CIN of the company and PAN of the company
2. Main business activities list
3. Details of share capital along with the shareholding
4. If any debenture and the loan in the company then the details of the debenture and loan
5. If any other securities held by the company.

At the time of AOC 4 filing

1. Balance sheet of the company i.e. financial statement
2. Profit and loss Statement showing the income and expenditure of the company
3. Directors reports along with the financials
4. Independent auditors report.

OTHER COMPLIANCES

Some of the other compliances as may be specified by the Ministry of corporate affairs as per notification should mandatory to be complying with all the companies. Some of the other compliances are as described under the Act are:

1. KYC of the directors of the company annually for the activation of the DIN.

2. DPT 3 annual compliance should be done by all the companies on a yearly basis.

Email Id Swati@neusourcestartup.com and Phone Number 9540026175.

The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.

Akash Rai

"Any time is a good time to start a company.” Neusource indulge in providing business consultancy services which help startups to accomplish their desired results as a TAJ EXPRESS. If you’re passionate about something and you work hard, then neusource is the right choice for you.