Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

One-Person Company (OPC)

Shanthi (Junior Student) (226 Points)

04 August 2009

Does anyone have the full details about the new entity in the form of One-Person Company (OPC) ?

1. Can a present PVT ltd downsize and become a one man company OPC ?

2. What are the rules and regulations governing the OPC ?

3. If the bill is introduced in 2009, can OPC be registered immediately or we have to wait till next financial year i.e 2010 March ?

Shanthi

Reply
Follow
Share

8 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 04 August 2009

OPC is a new concept in Companies Bill 2009 which has been introduced in the Lok Sabha only yesterday, i.e. 3.7.2009. We have to wait till it becomes a law and the relevenat rules under the Act are also notified in due course.

Upgrade to CAclubindia Pro. Subscribe Now!

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 04 August 2009

One Person Company is a new concept introduced by the New Companies Bill, 2009 which was presented in Lok Sabha on 03/07/2009. OPC can be formed only after the Bill has been notified and become an Act. After that you can take steps for such conversion.

CA.Shaleen Srivastava (CA , CWA*, Bcom(H)) (2004 Points)
Replied 04 August 2009

Can a single person run the company?????????????????????????/

Rahul Chobdar (Chartered Accountant (Financial Management)) (561 Points)
Replied 04 August 2009

Nice question

Max Payne (employed) (2574 Points)
Replied 04 August 2009

yes OPC needs only one shareholder,

but the MoA shall state a nominee who shall inherit the shares in case of death of this person

Upgrade to CAclubindia Pro. Subscribe Now!

Chintan Vasa (CA Final Student M.Com) (1241 Points)
Replied 04 August 2009

If a single person wamts to do business then why would he form a company i.e. OPC? Why would a person go into so many compliances with ROC. MCA, Co Act etc?

Max Payne (employed) (2574 Points)
Replied 04 August 2009

Originally posted by :Chintan Vasa
"	If a single person wamts to do business then why would he form a company i.e. OPC? Why would a person go into so many compliances with ROC. MCA, Co Act etc?	"

Because of the adavntage of limited liability for Honest persons. It is ideal for those small businessmen who want to organise their business more formally than a partnership, but want to avoid the headache of companies.

As per the proposed companies amendment bill, even the minimum capital requirements of companies will be done away with, and the number of members in case of private companies is proposed to be increased.