One Person Company:
As per Section 2(62) of the Companies Act 2013, One Person Company means a company which has only one person as a member.
Member and Nominee:
- Only natural persons and resident in India, who are Indian citizens and residents are eligible to form a one-person company in India.
- Even, a nominee shall be a natural person.
- A natural person cannot be a member or nominee of more than one OPC at any point in time.
- Resident in India means a person who has resided for not less than 182 days in the preceeding Financial Year.
- A nominee shall be appointed at the time of incorporation and can be changed at any time by informing the Registrar of Companies.
- They do not have to hold annual general meetings.
- Their financial statements need not include cash flow statements.
- A company secretary is not required to sign annual returns.
- Several provisions relating to meetings and quorum do not apply to them.
Incorporation of an OPC:
- Incorporation through SPICe (Without filling RUN):
Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) – Simplified Proforma for Incorporating Company electronically (SPICe) – with eMOA (INC-33), eAOA (INC-34). In case eMOA, eAOA are not applicable, users are required to attach the pdf attachments of MOA and AOA. There is no need for reserving a name separately before filing SPICe. One name for the proposed company can be applied through SPICe (INC-32).
2. Incorporation through SPICe (With RUN):
Name reservation: RUN service shall be used for name availability.
Incorporate OPC: After name approval, form SPICe shall be filed for incorporation of the OPC within 20 days from the data of approval of RUN.
The company shall file form INC-22 within 30 days, once form SPICe is registered in case the address of correspondence and registered office address are not same.
- To maintain the status of One Person Company, the paid up share capital shall not exceed Rupees 50 lakhs and Annual Turnover shall not exceed Rs. 2 crores in the immediately 3 preceeding Financial Years. Beyond which, the status of an OPC shall be lost.