One Person Company (OPC) was introduced by the Indian government in 2013. Before 2013, a single person could not incorporate a company. he/she needed minimum two directors to do that. Now with OPC, an individual can incorporate a company and be the sole director while retaining 100 percent of the company.
Only an Indian citizen and resident in India is eligible to form a One Person Company. Minors and any person incapacitated by contract are not eligible to register One Person Company. A person can form only one One Person Company.
In case If the paid-up share capital of an OPC exceeds 50 lakh rupees, the OPC has to mandatorily convert itself into a private or public company. (The same condition applies, if its average annual turnover of preceding three consecutive financial years exceeds 2 crore rupees)
At least one Board Meeting has to be conducted (one in 6 months each). Minimum Time gap between 2meetings should not be less than 90 days. We will take care all the compliance work regarding One Person Company registration.
>Unlimited Liability
>>The owner and the company are considered as same entity
>>>Company’s income is taxed under personal income of owner
>limited Liability
>>The owner and the company are considered as two different entities
>>>Company’s income is taxed as company income.