Hello,
Stay at Home be safe.
Since there is lot of discussion on Corona everywhere I will not discuss it .
Are you aware that there can be private company of one person ?
Now you will start saying that on last blog I have shared that the private limited company requires min. 2 share holders and now I am saying this ?
Wait wait ,
There is a different type of private limited company called as One person company ( OPC)
While writing it’s name it will be e.g.
ABC (OPC) private limited
It’s a private limited company where only one shareholder will be there and he will be the Director of company.
It is not a proprietary firm it’s a private limited company
Salient features
1. Company is having separate legal existence.
2. Even then only one shareholder company and shareholder Director are separate from each other .
3.Only one shareholder and the same is director. There may be some more Directors but they do not own any shares of company.
4. All the features like separate legal existence, artificial person created by law are applicable to OPC
5. When OPC crosses turnover 2 Cr. Consecutively for 3 years then one more shareholder is to be added and OPC to be compulsorily converted to regular private limited company.
6. For voluntary conversion company must have completed 2 years.
7. Feature available to other limited company i.e limited liability is also available to. OPC
This is a very useful form for small business owners or who intend to start their business.
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