As per the companies Act 2013 one person company can be formed which means there is only one share holder in this company and the min and max number of member in this company is only one.
As reported by section 3(1) needs holders to bring up the term of “one Person Company” after the name of firm at any times it’s showed up.
- Only natural person can form one person company.
- The person should not minor which means a person who is not eligible to take full legal responsibility.
- The person should be resident of India for at least 182 days in the time of current financial year and his citizenship should belong to India.
- LIMITED LIABILITY - OPC has limited liability it means the personal property of the director is safe. Debts of business is doesn’t matter.
- SURVIVAL - OPC is an artificial person so it will not come to and after the death of director it will move to nominee director, hence continuous existence.
- EASY FUNDING: - Borrowing money from bank and other source of finance is easy for a company because its trust worthy as compare to other types of form.
- Firstly look over on the eligibility and required document.
- Petition for DSC & DIN.
- Petition for name preservation.
- File spice plus for company.
- Apply for PAN and TAN for your current company.
- Registrar of company provides a certificate of incorporation with PAN and TAN.
- Open bank account and commenced business.
DOCUMENTS REQUIRED FOR FORMATION OF OPC:-
- Passport size photo
- Copy of PAN card that you applied for your new company.
- Duplication of electricity bill
- Conveyance deed if he have or if it his rented then copy of rent agreement id needed
- Reprint of Aadhar card
- Proof of address where company is established
- No objection certificate.
CONVERSION OF OPC TO PRIVATE COMPANY: -
- VOLUNTARY - If want to convert your one person company into private limited company then you have to wait for two years from incorporation of your one person company.
- INVOLUNTARY - if you’re paid up share capital is more than 50lac and average of annual turnover is more than 200lac then you have to convert your one person company into private limited company.
HOW TO CONVERT AN OPC INTO A PRIVATE LTD.:-
- The Concert registrar of company must 1st be notified via assigned system that OPC is transforming itself into private limited.
- OPC should carry a common conference for preceding the intension for assignation of min directors and members which is mandatory in formation of a private Ltd.
- After this there is a petition for conversion,
- Attentive MOA and AOA
- Copy of particular intension.
- List of preferred directors and members
- List of beneficiary
- Current audited balance sheet and P&L A/c
- Copy of NOC of all creditors with petition of transformation
- Approval of nominee
- Duplication of PAN card of the nominee and nominee
- Identity proof of member and nominee
- Address proof of nominee and director.