ONE PERSON COMPANY
MAY 21, 2020
DAY 4
THANK YOU FOR LOGGING IN. GOOD MORNING BOYS!
I HOPE THAT YOUR EXAM WENT OFF WELL. VERY SOON YOU WILL GET YOUR RESULTS.
YESTERDAY WE DID PRIVATE AND PUBLIC COMPANY . TODAY WE WILL DO THE THIRD TYPE OF COMPANY WHICH IS ONE PERSON COMPANY.
LEARNING OUTCOME- At the end of the topic, students will be able to:
1) Discuss the features of one person company.
2) Differentiate between all the types of companies.
WATCH A SMALL VIDEO FIRST TO UNDERSTAND ONE PERSON COMPANY:
NOW TAKE DOWN THE NOTES:
Q.27 What is meant by ONE PERSON COMPANY(OPC)? Write its features. (6)
Ans- OPC is a private company which can be incorporated with one member only. It requires a minimum of one director and one shareholder. The same individual can be the director and shareholder of the company. Thus, a single person can set up a company on his or her own .
The features of OPC are as follows:
1. According to Companies Act, 2013, only a natural person who is an Indian Citizen and Resident in India is eligible to act as a member and nominee of an OPC.
2. It is incorporated as a private limited company. The words One Person Company should be mentioned in the brackets with the name of the One Person Company.
3. One cannot incorporate more than one OPC and no minor shall become member of the OPC or hold share with beneficial interest.
4. To maintain the continuity, the only member should appoint a nominee and it must be indicated in the document of the company with prior written consent of the nominee.
5. In case of death or inability of the main member to continue, the nominee becomes the main member of the OPC. The member has limited liability to the extent of the shares held by him in the company.
6. The minimum paid up capital required for OPC is Rs 1 Lakh but if it exceeds Rs 50 lakh or the average turnover for preceding three consecutive financial years exceeds 2 crore then it becomes mandatory to convert the OPC into private or public company.
Q.28 Differentiate between Private or Public Company and One Person Company. (5)
Ans- BASIS PUBLIC/PRIVATE COMPANY ONE PERSON COMPANY 1. MEMBERS
MIN 7(PUBLIC) AND 2(PVT) 1
MAX NO LIMIT(PUBLIC) AND 200(PVT) 1
2. DIRECTORS MIN 2 IN PRIVATE COMPANY
MIN 3 IN PUBLIC COMPANY MIN 1
MAX 15 IN BOTH COMPANIES MAX 15
3. TRANSFER OF SHARES FREELY TRANSFERABLE(PUBLIC)
RESTRICTED(PVT) RESTRICTED
4. INVITATION TO PUBLIC POSSIBLE(PUBLIC)
NOT ALLOWED(PRIVATE) NOT ALLOWED
5. SUFFIX TO NAME LTD(PUBLIC)
PVT LTD(PRIVATE) PVT LTD(OPC)
ALL THE BEST FOR NEXT EXAM. GOD BLESS YOU ALL!
DAY 4
THANK YOU FOR LOGGING IN. GOOD MORNING BOYS!
I HOPE THAT YOUR EXAM WENT OFF WELL. VERY SOON YOU WILL GET YOUR RESULTS.
YESTERDAY WE DID PRIVATE AND PUBLIC COMPANY . TODAY WE WILL DO THE THIRD TYPE OF COMPANY WHICH IS ONE PERSON COMPANY.
LEARNING OUTCOME- At the end of the topic, students will be able to:
1) Discuss the features of one person company.
2) Differentiate between all the types of companies.
WATCH A SMALL VIDEO FIRST TO UNDERSTAND ONE PERSON COMPANY:
Q.27 What is meant by ONE PERSON COMPANY(OPC)? Write its features. (6)
Ans- OPC is a private company which can be incorporated with one member only. It requires a minimum of one director and one shareholder. The same individual can be the director and shareholder of the company. Thus, a single person can set up a company on his or her own .
The features of OPC are as follows:
1. According to Companies Act, 2013, only a natural person who is an Indian Citizen and Resident in India is eligible to act as a member and nominee of an OPC.
2. It is incorporated as a private limited company. The words One Person Company should be mentioned in the brackets with the name of the One Person Company.
3. One cannot incorporate more than one OPC and no minor shall become member of the OPC or hold share with beneficial interest.
4. To maintain the continuity, the only member should appoint a nominee and it must be indicated in the document of the company with prior written consent of the nominee.
5. In case of death or inability of the main member to continue, the nominee becomes the main member of the OPC. The member has limited liability to the extent of the shares held by him in the company.
6. The minimum paid up capital required for OPC is Rs 1 Lakh but if it exceeds Rs 50 lakh or the average turnover for preceding three consecutive financial years exceeds 2 crore then it becomes mandatory to convert the OPC into private or public company.
Q.28 Differentiate between Private or Public Company and One Person Company. (5)
Ans- BASIS PUBLIC/PRIVATE COMPANY ONE PERSON COMPANY 1. MEMBERS
MIN 7(PUBLIC) AND 2(PVT) 1
MAX NO LIMIT(PUBLIC) AND 200(PVT) 1
2. DIRECTORS MIN 2 IN PRIVATE COMPANY
MIN 3 IN PUBLIC COMPANY MIN 1
MAX 15 IN BOTH COMPANIES MAX 15
3. TRANSFER OF SHARES FREELY TRANSFERABLE(PUBLIC)
RESTRICTED(PVT) RESTRICTED
4. INVITATION TO PUBLIC POSSIBLE(PUBLIC)
NOT ALLOWED(PRIVATE) NOT ALLOWED
5. SUFFIX TO NAME LTD(PUBLIC)
PVT LTD(PRIVATE) PVT LTD(OPC)
ALL THE BEST FOR NEXT EXAM. GOD BLESS YOU ALL!
Yash pandey
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A Board Meeting must be held to obtain the Directors' in-principle approval and to set the date, time, and location of the Extra-Ordinary General Meeting (EGM), which will be held to obtain the approval of the Private Limited Company's shareholders, in order to start the process of converting a Private Limited Company into an OPC.
ReplyDeleteUseful and informative blog for everyone who is willing to get one person company in india
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