Posted in: Legal/Finance in Hyderabad | Posted: |
The Companies Act 2013 introduced the concept of an entity called a One Person Company (OPC). This blog guides you all about One Person Company.
Earlier, a company involved at least 2 people to begin with. In such a company, a single person is the sole shareholder of the company who may as well be the Sole Director. The purpose is to enable small businessmen to function with a corporate identity, a separate legal entity having limited liability and Perpetual Existence, while remaining independent.
Also, Compliances in case of an OPC are a lot less as compared to those in case of a Private Limited Company, in effect reducing costs.
The member must appoint a nominee, and take prior written consent from him, who shall become a member of the company in case of death/ inability to contract of the owner.An OPC must be converted into a Private Limited/ Public company when the annual turnover in the last three financial years exceeds INR 2 crores or if the paid-up capital exceeds INR 50 lakhs.
More Read also.....https://blogs.24efiling.com/all-about-one-person-company/
Contact this advertiser
