One Person Company
What is one person company under the new companies bill 2012? what is the significance of OPC when already LLP and sole proprietorship exist ?
One Person Company is now a reality in law. Section 2(62) of the Companies Act, 2013 (“Act”) defines One Person Company (hereinafter ‘OPC’) as a company which has only one person as a member.
OPC can be registered only as a private company which means that all the provisions applicable to private company will be applicable to an OPC, unless otherwise expressly excluded in the Act or rules made there under.
OPC is a completely separate legal entity where as in sole proprietorship there is no distinction between business and the owner. In the former the liability of the shareholder is limited whereby it is sole liability in case of the latter.
There can be five types of OPCs that can be incorporated under the new Act of 2013, viz.OPC Limited by Shares; OPC Limited by Guarantee with Share Capital; OPC Limited by Guarantee without Share Capital; Unlimited OPC with Share Capital, and Unlimited OPC with Share Capital.
The main Difference between OPC and LLP is that OPC is Formed with a single person and Based on the concept of shares whereas Minimum two partners are required to form a LLP and It depends on the Individual contribution by the Partners. Appointing an auditor is mandatory for OPC while for LLP Auditor is mandatory only if the revenue reaches Rs 40 lakhs.