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One person company

Ruchika Karunakar 40
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Flow of Presentation
Introduction
Features of OPC
Terms and Restrictions of OPC
Company vis a vis one person company
Incorporation of company
Types of OPC
Conclusion
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What is One Person
What is One Person
Company?
Company?
As per section 2(62) of the Companies Act, 2013, One
!erson Company" means a company #hich has on$y one
person as a mem%er

Companies Act 2013 Provides the Rules and Leislations !or OPC

One"person company in the leal system is a move that #ould


encourae corporatisation o! $usiness and entrepreneurship

OPC is a one shareholder corporate entity%

Leal and !inancial lia$ility is limited to the company only%


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&eatures
&eatures
o! OPC
o! OPC

OPC has only one person as a mem$er'shareholder%

OPC can $e reistered only as a Private Company%

OPC may $e either a company limited $y share or a company


limited $y uarantee or an unlimited company%

(he memorandum o! a company shall state the last letters and


#ord )OPC Limited* in the case o! a One Person limited
company%
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(erms and Restrictions o! OPC
(erms and Restrictions o! OPC

A person shall not $e elii$le to incorporate more than a One Person


Company or $ecome nominee in more than one such company%

+inor cannot shall $ecome mem$er or nominee o! the One Person


Company or can hold share #ith $ene!icial interest%

An OPC cannot $e incorporated or converted into a company under


,ection - o! the Act%

An OPC cannot carry out .on"/an0in &inancial 1nvestment activities


includin investment in securities o! any $ody corporate%

An OPC cannot convert voluntarily into any 0ind o! company unless t#o
years have e2pired !rom the date o! incorporation3

Company
Company
vis"4"vis
vis"4"vis
O.5 P5R,O. CO+PA.6
O.5 P5R,O. CO+PA.6
Common ,eal
Perpetual ,uccession
,eparate !inances
,eparate leal entity
,eparate property
Limited lia$ility
+anaement and Control
!
1ncorporation o! OPC
1ncorporation o! OPC
"
(ypes o! OPC
(ypes o! OPC
A company limited by shares
Company havin the lia$ility o! its mem$ers limited $y the
memorandum to the amount3 i! any3 unpaid on the shares respectively
held $y them
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An OPC limited $y shares shall comply #ith !ollo#in
re8uirements 9
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,hall have minimum paid up capital o! 1.R 1 lac
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Restricts the riht to trans!er its shares
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Prohi$its any invitations to pu$lic to su$scri$e !or the
securities o! the company%
#
(ypes o! OPC cont1%%
(ypes o! OPC cont1%%

A company limited by guarantee


A company limited $y uarantee is private company3 very li0e a private
company limited $y shares% 1t is #idely used !or charities3 clu$s3
community enterprises and some co"operatives% (he lia$ility o! the
mem$ers is limited%

(here are no shares and so no shareholders


&or company limited $y uarantee $y havin share capital company does
have mem$ers3 #ho meet and control the company throuh eneral
meetins
%
$
(ypes o! OPC cont2%%
(ypes o! OPC cont2%%

An unlimited company
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+em$ers accept complete lia$ility !or the company:s de$ts%
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Company is suita$le !or a $usiness #here the ris0 o! insolvency
is very lo# or non"e2istent
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Conclusion
Conclusion

OPC company is li0e an One +an Army%

(he compliance $urden is very less and the lia$ility o! the mem$ers
is very limited is an added advantae%

OPC is e2pected to $ene!it people #ho are into sel! employment


and many small scale sectors%

1t is a remar0a$le !eature o! the Companies Act32013% )OPC


should $oost the con!idence o! small entrepreneurs*%
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References

www&Fppt&com
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