One Person Company (OPC)—Game Changer

One person company gives an opportunity of starting with a new company with only one person as a member.

One Person Company (OPC) has to be incorporated using the following steps:-

·         INC-1 to be filed for reservation (application) of name of the proposed company.

·         After the approval INC-2 has to be filed for the incorporation within 60 days of approval of name.

·         If promoter is not the director of the proposed company then file DIR-12 along with INC-2.

One Person Company has to mandatorily get it converted into either public or private company if the authorised capital of the company exceeds 50 lakhs or turnover exceeds 2 crores.

INC-5 has to filed to the ROC regarding intimation that the threshold limit has exceeded and is required to be converted to either public or private limited company.

File INC-5 within 60 days of exceeding threshold limits.

INC-6 has to be filed for the conversion of OPC to either public or private limited company.

A person can be a member in only one OPC.

A nominee is also appointed in OPC which in the event of death or incapacity shall become the member of the OPC.

But what if by the virtue of nominee a person becomes the member of two different OPC?

Well, that member has to withdraw its membership from either one of the two OPCs within 180 days.

This Article has been shared by Manpreet Kaur. She can be reached at kaur04.manpreet@gmail.com