Getting familiar with a ‘one person company’ (opc) in india – india briefing news

The law of companies is ever evolving, and 2013 saw the introduction of the updated Companies Act. High profit items to sell on amazon The Act contained one of the most significant steps in the direction of modernizing the law for companies in the introduction of One Person Company (OPC). Best business ideas with high profit in india Defined under Section 3 (1) (c) of the Companies Act, 2013, an OPC is basically a limited liability company that is owned by one person only. High profit margin items It was the J.J. Highest profit margin items on ebay Irani Expert Committee that first recommended the formation of such a type of company.

In the earlier 1956 Act, a minimum of two directors and shareholders were required to constitute a company. Low cost high profit products But for incorporating and conducting a One Person Company, only one person (as the name suggests) is required who can be the director of the company as well as the shareholder of the company.

Section 2(62) of the Companies Act, 2013 defines an OPC as a company with only one person as its member. High profit items to sell on ebay An OPC can register as ‘Limited by Shares’ or ‘Limited by Guarantee’. Business with high profit margins in india Nevertheless, the memorandum of One Person Company must indicate the name of the other person, with his/her prior written consent in the manner as prescribed. Ebay products with highest profit margin Such person who has been nominated in the memorandum, shall in the event of the death of the only subscriber or his/her inability to contract, become the member of the company. High profit business ideas philippines The written consent of such a person is required to be filed with the Registrar of Companies at the time of the incorporation of the One Person Company along with its memorandum and articles of association. Low investment business with high profit in chennai RELATED: Corporate Establishment Relaxation Available to OPCs (One Person Company)

The OPCs are privileged in a certain way. Small business low investment high profit Mentioned below are concessions or relaxations that are available to an OPC but not to regular companies:

• An OPC is required to hold only one meeting of the Board of Directors in every single half of a calendar year, and the gap between the two meetings should not be less than 90 days.

If you notice, most of these relaxations are related to compliance. Best business with highest profit margin This is done mainly because an OPC can be successfully used as a business tool and the person incorporating it is not faced with the regulatory hassles as in the case with a regular company. High profit jobs Can a Body Corporate Form an OPC?

As per Singapore law, a Company can be the one person in a One Person Company, so, for example, if you have an existing company where you are a director, you can form a One Person Company with your company as the only director.

For instance, consider that you have a company called Malini Textiles Pvt Ltd. High profit items to sell online with you and your friend Akash as directors. Business with low investment and high profit in india Now you may want to import textiles from Italy for sale in India and would want to have a distinct entity to do that (for accounting and taxation purposes). High profit business ideas uk As per Singapore law, you are entitled to form a One Person Company with Malini Textiles Pvt Ltd, as the sole person in the company. High profit margin products However, In India, the law does not allow a company to be a “person” in an OPC, and only a natural person can form a ‘One Person Company.’

• Only a natural person who is an Indian citizen and resident of India shall be eligible to incorporate an OPC or be appointed as a nominee for the sole membership of a One Person Company. Low cost business ideas with high profit philippines The term ‘resident in India’ means a person who has stayed in India for not less than 182 days during the immediately preceding financial year;

• If a One Person Company exceeds the paid-up capital of Rs 5,000,000 (US$ 74,624), then it needs to be mandatorily converted into a private or public company. Low startup high profit business Also, if the annual turnover exceeds Rs 20,000,000 (US$ 298,494), it must be converted into a private or public company.

RELATED: India Regulatory Brief: New Rules for Income Declaration Scheme 2016, India-Cyprus Tax Treaty, and Surrogacy Bill, 2016 How Can a ‘One Person Company’ be Converted into a ‘Private Company’ or ‘Public Company’?

It is possible for a One Person Company to get itself converted into a Private or a Public Company. High profit products In order to do so, it needs to increase the minimum number of members and directors to two (for a private company) or have a minimum of seven members and three directors (in case of a public company). Low investment high profit business in kolkata Additionally, it must maintain the minimum paid-up capital as per the legal requirements of such a class of company, meeting due compliance with Section 18 of the Companies Act and Rule 7(4) of the Companies (Incorporation) Rules, which lay down the necessities of such making such conversion.

However, an OPC cannot be converted voluntarily into any other kind of company unless two years have expired from the date of its incorporation. High profit margin products to sell How Can a ‘Private Company’ be Converted into a ‘One Person Company’?

A private company other than the company registered under Section 8, which deals with non-profit associations, having a paid-up share capital of Rs 5,000,000 (US$ 74,624) or less and with an average annual turnover during the relevant period of Rs 20,000,000 (US$ 298,494) or less may convert itself into a One Person Company by passing a special resolution at the general meeting. High profit selling pdf Penalty

If any One Person Company or the officer of such a company contravenes with any of the provisions of the Companies Act, 2013, then s/he will be held liable to pay the penalty, which may extend to Rs 5000 (US$ 74.62), and in the case of repeated offense, with a fine, which may extend to Rs 500 (US$ 7.46) for every day after the first offense during which period such contravention continues.

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Doing Business in India 2016 is designed to introduce the fundamentals of investing in India. High profit shares in india As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.

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