Formation of One Person Company (OPC):

1. One Person Company (OPC) is a type of private company that can be formed by a single person. This concept was introduced in India through the Companies Act, 2013 to support entrepreneurs who are capable of starting a venture by allowing them to create a single person economic entity.

2. The person who will be forming the OPC has to be a natural person, who is an Indian citizen and resident. A resident is someone who has stayed in India for a period of not less than 182 days during the immediately preceding financial year.

3. The OPC must have a minimum of one director and can have a maximum of 15 directors which can also be increased by passing a special resolution as in case of any other company.

4. The OPC must have a minimum paid-up share capital of INR 1 Lakh.

5. The name of the nominee shall be mentioned in the Memorandum of Association of the OPC, who shall, in the event of death or incapacity of the member of the OPC, become the member of the OPC.

Conversion of OPC into a Public or Private Company:

1. An OPC can be converted into a Public or Private company after two years from the date of incorporation.

2. If the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, it must be converted into a private or public company.

3. The OPC must alter its memorandum and articles by passing a resolution in accordance with section 122(3) of the Companies Act, 2013.

4. The company must also comply with all the requirements of the Companies Act, 2013 for conversion into a private or public company.

5. The company must file an application to the Registrar within 15 days from the date of passing of the resolution for conversion.

6. The Registrar will then issue a fresh certificate of incorporation, after which the conversion will be complete.

Question

Formation of One Person Company (OPC):

1. One Person Company (OPC) is a type of private company that can be formed by a single person. This concept was introduced in India through the Companies Act, 2013 to support entrepreneurs who are capable of starting a venture by allowing them to create a single person economic entity.

2. The person who will be forming the OPC has to be a natural person, who is an Indian citizen and resident. A resident is someone who has stayed in India for a period of not less than 182 days during the immediately preceding financial year.

3. The OPC must have a minimum of one director and can have a maximum of 15 directors which can also be increased by passing a special resolution as in case of any other company.

4. The OPC must have a minimum paid-up share capital of INR 1 Lakh.

5. The name of the nominee shall be mentioned in the Memorandum of Association of the OPC, who shall, in the event of death or incapacity of the member of the OPC, become the member of the OPC.

Conversion of OPC into a Public or Private Company:

1. An OPC can be converted into a Public or Private company after two years from the date of incorporation.

2. If the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, it must be converted into a private or public company.

3. The OPC must alter its memorandum and articles by passing a resolution in accordance with section 122(3) of the Companies Act, 2013.

4. The company must also comply with all the requirements of the Companies Act, 2013 for conversion into a private or public company.

5. The company must file an application to the Registrar within 15 days from the date of passing of the resolution for conversion.

6. The Registrar will then issue a fresh certificate of incorporation, after which the conversion will be complete.

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