Section 2 62 defines one person company as a private company with only one director and one shareholder. One person company a look at the relevant legal provisions under the companies act, 20. It is similar to a sole proprietorship but the owner shall have limited liability and thus his personal assets would not be at risk if losses need to be recovered or if the company is liquidated. Special offer on gst package for cas as per the mou with icai. With the implementation of the companies act 20, a single person will constitute a company, under the one person company opc concept. Mca has now issued a new eform called spice which is a simplified version of previous forms. Also, new concepts such as oneperson company, small companies, dormant company, class action suits, registered valuers and corporate social. Introduction to company law cs executive companies act 20. One person company important provisions under companies. Description download an analysis of one person company under companies act comments. One person company opc is entirely new concept inducted under the companies act, 20 act. Under the old companies act, 1956 minimum two members were required for formation of a private limited company. April 2020 edition of my ebook on the companies act, 20 is available for sale from april 1, 2020.
Introduction genesis and global development definition of one person company special features of opc privileges to opc incorporation of opc conversion of opc to pvt. New authorities and investigation offices have been set up. One person company opc companies act, 20 passed in lok sabha on 18th december, 2012 passed in rajya sabha on 8th august, 20 received ascent of president 29th august, 20. One person company under new companies act,20 taxguru. The sections relating to one person company were notified on the 26th march 20 and the rules with regard to the same have also been notified. Substituted by the companies amendment act,2017 yet to be notified by central goverment.
Jan 17, 2015 one person company opc as per companies act, 20 1. Cairr is a free to use website that provides the indian companies act, 20 at your fingertips. One person company under the companies act, 20 youtube. After name approval, form spice shall be filed for incorporation of the opc within 20 days from the data of approval of run. Incorporation through spice with run name reservation. Aug 23, 2018 students have lot of doubts with respect to opc so here we go with a concise solution. The act has 470 clauses and 7 schedules as against 658 sections and 15 schedules in the existing companies act, 1956. The company is a one person company within the meaning of section 2 62 of the companies act, 20 and accordingly limits the number of its member to one person. Difference between private company and public company. Companies act in pdf is available for students and professionals. The ca20 makes comprehensive provisions to govern all listed and unlisted companies in the country. Section 122 applicability of this chapter to one person.
With the implementation of the companies act, 20, a single national person can constitute a company, under the one person company opc concept. Discuss the various kinds of companies recognized under the companies act, 20. Students have lot of doubts with respect to opc so here we go with a concise solution. Nov 08, 20 the companies act, 20 has brought about a remarkable development in the corporate arena by bringing in the concept of one person company opc. Be it enacted by parliament in the sixtyfourth year of the republic of india as follows. Introduced under the companies act, 20, section 262 defines that the opc is a company which should have one person as its member.
Apr 03, 2016 types of company under the companies act 20. Kinds of companies under companies act, 20 bbamantra. One person company opc under new companies act, 20. Jul 12, 2014 one person company of soleproprietor and company form of business has been provided with concessional relaxed requirements under the companies act, 20.
Discuss the various kinds of companies recognized under the. One person company important provisions under companies act. In keeping up with the times and technology company law 20 has brought about revolutionary changes in practice and procedure. Jan 17, 2014 one person company means a company which has only one person as a member. On such gamechanger was the introduction of one person company concept. That type of company called one person company section 262. One name for the proposed company can be applied through spice inc32. The companies act, 20 completely revolutionized corporate laws in india by introducing several new concepts that did not exist previously.
In india, companies are governed by the indian companies act, 20. Prohibition on forward dealings in securities of company by director or key managerial personnel. Companies act integrated ready reckoner companies act 20. Section 3 of companies act, 20 formation of company. It means it is a gift of companies act, 20 that any person, may incorporate company, who is competent to contract. The 20 act is divided into 29 chapters containing 470 sections as against 658 sections in the companies act, 1956 and has 7 schedules. Companies act 20 complete act citation 63265 bare act. Pdf relevance of one person company international journal of. Opc will help small single entrepreneurs, who are currently operating under a proprietorship model, move to the corporate structure with benefits of limited liability but with minimal compliance.
Previously, under the companies act, 1956, such type of company could not be. One person company is a new concept introduced by the companies act 20. Pdf an analysis of one person company under companies. Aug 16, 2017 if there is only one promoterfounder, one person company opc is the best way to start a company. Considering the relevancy of the study we can curtail it to the old act, i. The companies act is passed by the central government of the country to regulate the activities of companies to provide protection to investors. Incorporation of one person company under companies act, 20. A private limited company has a paidup share capital rs. As the name suggests, a one person company is formed with only one person as its member. After the enactment of section 3 of the act, its now possible for individuals to incorporate the opc. Provided further that the company shall disclose the details of such loans or guarantee or security or acquisition in the financial statement as provided under subsection 4. Section 262 defines one person company as a private company with only one director and one shareholder. Types of company under the companies act 20 setindiabiz.
Incorporation of company under companies act 20 part1 ministry of corporate affairs mca has come up with new rules for incorporation of company with simplified procedure. Steps to be followed for the incorporation of company in india. Companies act 71 of 2008 english text signed by the president assented to. If there is only one promoterfounder, one person company opc is the best way to start a company. Conversion of an opc into public or private company. The authorised capital of the company shall be as per capital clause of the memorandum of association of the company and shall have minimum paid up. The companies act 20 is an act of the parliament of india on indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. Chapter viii declaration and payment of dividend 123127 section 123 declaration. Form dir3 is the option only available for existing companies. Form dir 3 is the option only available for existing companies. It is an unique identification number allotted to an individual who is an. Companies amendment act 3 of 2011 act to provide for the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of.
One person company means a company which has only one person as a member. However, it can have more than one director, and up to a maximum of 15. According to section44 of the companies act, 20 person can make an application to propose the name of the company to be registered with such forms and manner accompanied by fees of rs. Section 122 applicability of this chapter to one person company companies act, 20. The term company law in simple words mean legislation relating to companies. Applicability of this chapter to one person company. One person company under companies act 20a new dimension. So, the key difference between opc and sole proprietorship is the way liabilities are treated. Apr 26, 2014 one person company opc is entirely new concept inducted under the companies act, 20 act. Opc is one of the significant milestones of the companies act, 20, introduced to encourage selfemployment with a backbone of indias legal system.
It must be noted that the incorporated companies may be formed in three different ways, namely, i companies incorporated by royal charter. Faqs on the companies act, 20 institute of company. The companies act, 20 has brought about a remarkable development in the corporate arena by bringing in the concept of one person company opc. May 02, 2014 one person company opc under new companies act, 20 1. The concept of one person company in india was introduced through the companies act, 20 to support. This was a hindrance to the entrepreneurs who wanted to go solo. With the implementation of the companies act, 20, a single national person can constitute a company, under the one person company opcconcept. Power to exempt class or classes of companies from. The companies act, 20 has been notified in the official gazette on 30th august, 20 but the provisions of this act shall come into force on such dates.
Several significant concepts have been introduced for the first time under companies act, 20 and one of them being one person company. Pune, mumbai, ahmednagar, nashik, aurangabad, kolhapur, sangli for private circulation 2. Exemptions available to opc under the companies act, 20 11 one person company rule 3 of companies incorporation rules, 2014 11 incorporation of opc 12 important instructions filing of eform for incorporation 14 conversion of opc into public or private company and viceversa 16 conversion of private company into one person company 17. Different provisions of the companies amendment act, 2017 including any amendments, references in any provisions there in, shall come into force on such date or dates as the central government may, by notification in the official gazette appoints.
A person may be an executive director without drawing any remuneration and may also draw remuneration in professional capacity though not holding any executive position. Section 262 of the companies act, 20 act defines opc as a company which has only one person as a member. As per the provision of section 2 62 of the companies act, 20 defined 62 one person company means a company which has only one person as a member. Opc one person company is a private company incorporated by one person. One man company where one man holds practically the whole of the share capital of a company and takes a few more dummy members simply to meet the statutory requirements of the minimum number of persons such a company is one man company. Apr 18, 2014 one person company a look at the relevant legal provisions under the companies act, 20. A company is defined as an association of people which is formed to achieve a common goal and it should be incorporated under the law. One person company of soleproprietor and company form of business has been provided with concessional relaxed requirements under the companies act, 20. As per provision of section 262 of the companies act, 20 defined 62 one person company means a company which has only one person. The development of company law in india is quite historic. One person company registration opc registration procedure in. Incorporation of company under companies act 20 part1. Apr 01, 2020 companies act in pdf is available for students and professionals.
One person company under companies act 20 a new dimension. Report an analysis of one person company under companies act please fill this form, we will try to respond as soon as possible. The companies act, 20 passed by the parliament has received the assent of the president of india on 29th august, 20. A one person company is registered in the same manner as a private limited company, thereby the same provisions are followed by both. Since such companies have only one member, these companies enjoy certain privileges or exemptions as compared to other companies. With the implementation of the companies act, 20, a single national person can constitute a company, under the one person company opc. Faqs on the companies act, 20 3 is executive director or not.
The 20 act introduces a new type of entity to the existing list i. A single entrepreneur can manage his business on his own. One person company under the companies act, 20 corporate. The new act has introduced some new concepts like definition of one person company, small company, dormant company, independent directors, cross border mergers etc. Companies act 20 generally sets up mood for lean and slim.
An act to consolidate and amend the law relating to companies. One person company a new concept of companies act 20. The it is a separate legal entity yet only one person is companies act 20 has introduced some new responsible for the workings of the company. Conversion of private company into one person company. One person company opc as per companies act, 20 slideshare.
An opc means a company with only one person as its member section 31 of 20 act. Ebook on companies act 20 in pdf april 2020 edition. Company law 20 has ushered a new era for indian corporate world. One person company opc under new companies act, 20 1.
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