WHAT IS ONE PERSON COMPANY AND TYPES OF ONE PERSON COMPANY

1. WHAT IS ONE PERSON COMPANY AND TYPES OF ONE PERSON COMPANY The Companies Act of 2013 significantly changed Indian corporate law by introducing several novel concepts. There is just one individual who has come up with this innovative concept. In contrast to the more common practice of forming a business with at least two people, a “one-person corporation” (OPC) is a company created by a single individual. When a corporation is legally recognized as the legal representative of a single person’s economic interests, it opens up new opportunities for one- person shops and service providers. Definition A “one person company” is described as a firm with just one member according to section 2(62) of the Companies Act, 2013. The timeline for Non-resident individuals has been shortened to 120 days, and any natural person who is an Indian citizen would be entitled to register a One Person Company and propose a candidate for an OPC. Before you go for the one-person company registration Mumbai you need to know the following: It is possible to incorporate the following OPC types under the Act: A firm can be organized as either a “company limited by shares,” a “company limited by guarantee,” or even a “corporation with no legal restrictions.” Companies Act of 2013 allows you to set up one of five distinct OPC types. Specifically, they are the following:

2. A Company Owned by Shares (OPC Limited) Organization for Nuclear Progress (OPC), a Limited Liability Company Protected by Guarantee and Maintaining Share Capital Open-Ended Public Company with No Share Capital Open-Ended Public Company with Unlimited Share Capital A Non-Share Capital OPC The Qualifications of OPC Shareholders and Nominee Members The OPC’s shareholder or nominee must be a true, living person who has voluntarily agreed to take on this role. This means that in an OPC, the shareholder and the nominee must both be natural persons, as opposed to the situation in other forms of enterprises where the shareholder might be another sort of organization. The person in question must be of legal age. They need to be a citizen of India and call India home to qualify. A person is deemed a resident of India under the Act if they have spent at least 120 days in the country in the preceding 12-month period. A person may only be a member or a candidate for one OPC at a time. A person must resign membership in one OPC or a nomination to serve on more than one OPC within 180 days of receiving notice of the additional nomination or membership. For one-person company registration, you need to know these matters. Is It Necessary to Appoint a Prospective Member? When forming an OPC, the only shareholder must choose a “nominee member,” who will then become a voting member of the corporation. The

3. appointed applicant will be welcomed as a full member of the business in one of the following cases: Unfortunately, a member of the family that alone owned the OPC has passed away. Anyone who will be nominated as a replacement in case the sole owner cannot carry out their duties under the contract must provide his written consent to the nomination. The nominee’s name must also appear in the OPC’s Articles of Association to be eligible for appointment.