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Finally, New companies
act 2013 has provision
for incorporation of
“One Person Company”.
This was need of hour
and finally Indian
Government has given its
assent to it.
One Person Company is a
new vehicle/form of
business, enabling
Entrepreneurs carrying
on the business as
Sole-Proprietor to enter
into a Corporate
Framework.
Such companies have only
one member it enjoys
certain privileges /
relaxations / exemptions
compared to other
companies. Though the
concept of One Person
Company is new in India
but it is a very
successful form of
business in UK and
several European
countries since a very
long time now.
One Person Company will
give the young
businessman all benefits
of a private limited
company which
categorically means they
will have access to
credits, bank loans,
limited liability, legal
protection for business,
access to market etc all
in the name of a
separate legal entity.
Section 3 of the New
Companies Act, 2013
provides for the
incorporation of One
Person Company.
This Company shall be a
private Limited Company.
The Company can have one
or two Directors, who
can be different from
the promoter. The
promoter can also act as
a sole Director of the
Company.
It is required for One
Person Company to also
indicate the name of
other person in
Memorandum who shall act
in case of death or
incapacity of one
person.
Only a natural person
who is an Indian citizen
and resident in India
(as defined) shall be
eligible to incorporate
a One Person Company and
also shall be a nominee
for the sole member of a
One Person Company.
One Person Company
cannot carry out
Non-Banking Financial
Investment activities
including investment in
securities of any body
corporate.
It will be necessary to
mention “one person
company” wherever the
name is printed or
affixed.
One Person Company
cannot be converted
voluntarily into any
kind of company unless
two years have expired
from the date of
incorporation, except
threshold limit (paid up
share capital) is
increased beyond fifty
lakh rupees or its
average annual turnover
during the relevant
period exceeds two crore
rupees.
There are various forms
to be filed for details
of Nominee members,
Application for
reserving the name of
the Company, the details
of Incorporation needs,
the affidavit, Signature
to be etc. |
+91-22-2447 5000