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OPC registration in Madurai

OPC registration in Madurai

 

 

 

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In India, a One Person Company (OPC) is a type of business entity that allows a single individual to operate a company and enjoy the benefits of limited liability. It was introduced through the Companies Act, 2013, to encourage small entrepreneurs to start their ventures without the need for additional shareholders. OPCs with OPC registration in Madurai provide a unique opportunity for individual entrepreneurs to have full control over their businesses while enjoying the benefits of a corporate structure.

Here are some key points to understand about One Person Companies in India:

Structure:

An OPC can have OPC registration in Madurai with only one person as its member and director. The individual acts as both the shareholder and the director of the company. This allows for a simplified structure with a single decision-making authority.

Limited Liability:

One of the significant advantages of OPCs is limited liability protection. The liability of the OPC is limited to the extent of the individual’s investment in the company. This means that the personal assets of the individual are safeguarded, and their liability is restricted to the capital they have invested.

Nominee:

To ensure continuity and compliance, an OPC with OPC registration in Madurai is required to appoint a nominee. The nominee will take over the management of the OPC in the event of the individual’s death or incapacity. The nominee’s consent is obtained during the formation of the OPC, and their details are provided to the Registrar of Companies.

Legal Status:

OPCs are recognized as separate legal entities distinct from their individual promoters. They can enter into contracts, own property, sue or be sued, and conduct business operations in their own name. This gives OPCs credibility and allows them to engage in various commercial activities.

Conversion:

As an OPC with OPC registration in Madurai grows and reaches certain thresholds, it may need to convert into a private limited company or a public limited company. The conversion process involves the inclusion of more members and directors to comply with the requirements of the Companies Act.

Compliance Requirements:

OPCs are subject to certain compliance requirements similar to those of other companies. They must maintain proper books of accounts, file annual financial statements, conduct annual general meetings, and comply with tax and regulatory obligations.

One person company nominee

Certainly! One Person Company (OPC) in India with OPC registration in Madurai is required to appoint a nominee during its incorporation. The nominee plays a crucial role in the company’s functioning and acts as a successor in the event of the sole member’s death or incapacity. Here, we will delve deeper into the concept of the nominee in an OPC, their roles and responsibilities, and the process of appointing and changing a nominee.

Roles and Responsibilities of the Nominee:

The nominee’s roles and responsibilities include the following:

Succession:

The primary role of the nominee is to succeed the sole member in the event of their demise or inability to continue managing the company. Upon such an occurrence, the nominee assumes the position of the member and becomes the owner of the OPC which has OPC registration in Madurai.

Management:

The nominee is responsible for managing the affairs of the OPC after taking over. This includes ensuring the company’s continuity, making necessary business decisions, and fulfilling the legal and statutory obligations of the OPC.

Consent and Agreement:

Before being appointed as a nominee, the individual must provide their written consent to act as the nominee. Their consent is submitted along with the OPC’s incorporation documents to the Registrar of Companies (RoC). The nominee’s agreement is essential to prevent any disputes or unwillingness to assume the role.

Change of Ownership:

If the nominee is required to assume ownership due to the member’s death or incapacity, they have the authority to initiate the process of transferring the ownership of OPC with OPC registration in Madurai to their name. This involves legal procedures, such as updating the company’s records and informing the RoC about the change in ownership.

Appointment of the Nominee

The appointment of a nominee in an OPC involves the following steps:

Selection:

The sole member selects an individual to act as the nominee. The nominee can be a family member, relative, or any other trusted person. It is important to choose someone who is willing and capable of taking over the OPC’s management if necessary.

Consent:

The selected individual must provide their written consent to act as the nominee. This consent is obtained on a prescribed form and is submitted to the RoC along with the incorporation documents of OPC with OPC registration in Madurai.

Nominee Details:

The particulars of the nominee, such as their full name, address, occupation, and consent, are mentioned in the OPC’s incorporation documents, including the Memorandum of Association (MoA) and Articles of Association (AoA).

Intimation to the Nominee:

Once the nominee is appointed and their consent is obtained, they must be informed about their nomination and the responsibilities associated with it. It is essential to have open communication and ensure that the nominee is aware of their role and obligations.

Change of Nominee:

In certain cases, it may become necessary to change the nominee of an OPC that has OPC registration in Madurai. The change can occur due to various reasons, such as the nominee’s unavailability, withdrawal of consent, or change in the sole member’s preference. The process of changing the nominee involves the following steps:

Resignation of Existing Nominee:

If the current nominee wishes to resign from their position, they must provide a written resignation letter to the OPC. The OPC is responsible for accepting the resignation and initiating the process of appointing a new nominee.

Selection of New Nominee:

The sole member selects a new individual to act as the nominee. The same criteria as mentioned earlier for the appointment of a nominee apply here.

Consent of New Nominee:

The newly selected individual must provide their written consent to act as the nominee. This consent is obtained on a prescribed form and submitted to the RoC along with the necessary documents.

Intimation to the RoC:

The OPC having OPC registration in Madurai must inform the RoC about the change in nominee by filing the necessary forms and providing updated information about the new nominee.

It is important to note that the appointment or change of nominee must be duly communicated to the RoC within the prescribed timelines to ensure compliance with the legal requirements.

Conclusion

Thus, the nominee in a One Person Company in India with OPC registration in Madurai plays a crucial role in ensuring the continuity and management of the company in the event of the sole member’s death or incapacity.

The nominee’s consent, selection, and proper communication with the RoC are vital aspects of appointing and changing the nominee. By having a nominee, an OPC provides a mechanism to safeguard the interests of the company and its stakeholders, while also ensuring the smooth transition of management in unfortunate circumstances.

OPC registration in Madurai

 

MCA amends OPC rules

 

The Ministry of Corporate Affairs as of late corrected the One Person Companies Rules after the declaration was made in such manner by the Finance Minister. The MCA has changed the Companies Incorporation Rules 2014. The changes to the principles administering One Person Companies will come into force from the first day of April. In this blog, we will take a gander at the key changes got by this correction.

What are One Person Companies, and what number of such organizations are there in India?

According to section 2 (62) of the Companies Act, 2013, One Person Company is an organization which has just 1 individual as a component of its individuals. This sort of organization was acquainted by the public authority with energize independent work potential open doors.

According to the information ordered by the Monthly Information Bulletin on Corporate Sector, there were in excess of 34,000 one individual organizations out of the absolute number of around 1.3 million dynamic organizations in India. This record is as of 31st December 2020. The quantity of OPC was a small more than 2000 as on 31st March 2015 out of a sum of around 1 million organizations. Information likewise connotes that the greater part of the OPCs are good to go services.

What is the goal of correcting the One Person Companies Rules?
  • To straightforwardly help new businesses and trend-setters in the country, particularly the people who supply items and services on web based business stages ;
  • To carry in additional unincorporated organizations into the coordinated corporate area;
  • To permit OPCs to develop with no limitations on settled up capital and turnover;
  • Permitting their transformation into some other kind of organization without warning; and
  • To permit Non-occupant Indians to consolidate One Person Companies in India.

In view of the previously mentioned places, the Ministry of Corporate Affairs has changed the OPCs Rules.

Key features of the alteration made in One Person Companies Rules

One person company will modify its reminder of affiliation and blogs of relationship by passing a goal as per sub-section (3) of section 122 of the Act to give impact to the transformation and furthermore to roll out essential improvements.

Already Non-Resident Indians were not permitted to begin OPCs, however presently the progressions permit Non-Resident Indians to consolidate OPCs in India.

According to the changes, the residency time frame to be considered as Indian Resident has been diminished to 120 days from 182 days for Non-Resident Indians.

The guidelines relating to willful transformation of OPCs except if they have finished a long time from the initiation date has been overlooked. The progressions have now permitted OPCs to be changed over into public or privately owned business whenever according to section 8 of the Act.

A One Person Company can be changed over into a Private or Public Company other than an organization enlisted under section 8 of the Act in the wake of raising the base number of individuals and directors to 2 or least 7 individuals and 3 directors, contingent on case to case.

The constraint relating to settled up capital and turnover appropriate to OPCs at present that is settled up share capital of 50 lakh rupees, and the typical yearly turnover during the pertinent time of 2 crore rupees is currently discarded. This is done so there are no limitations on the OPCs development as for their settled up capital and turnover.

Change in limits of settled up capital and turnover

The Ministry of Corporate Affairs has modified the constraint of settled up capital and turnover of small organizations under the Companies Act 2013[1].

The limit for settled up capital has been changed to “not exceeding 2 crore rupees” from “not exceeding 50 lakh rupees”;

The limit for turnover has been changed to “not exceeding 20 crore rupees” from “not exceeding 2 crore rupees”.

Quick track process for consolidations and blends of new businesses

The organizations (Compromises, Arrangements, and Amalgamations) Rules, 2016 is revised so as to guarantee quick track process of consolidations and mixtures among new businesses and small companies under the Companies Act 2013. The new standards will currently be called Companies (Compromises, Arrangements, and Amalgamations) Amendment Rules, 2021.

With this change affixing the consolidations and mixtures between at least two new businesses, at least one new businesses with at least one small companies is normal.

What are the advantages of decrease in consistence trouble for organizations?
A portion of the advantages in such case are as under:
  • No necessity of planning income articulation as a component of budget report;
  • Different organizations are expected to give subtleties of compensation to directors and key administrative work force, however in the event of small organizations they are expected to give subtleties of just the total measure of compensation drawn by directors in its yearly return;
  • There is no compulsory prerequisite of pivot of inspector;
  • Auditor of small organizations isn’t expected to give an account of the sufficiency of the inside monetary controls and its working viability in his report;
  • Hold just two executive gatherings in a year;
  • Yearly return of the organization can be endorsed by the Company Secretary or in the event of no organization secretary, by a solitary overseer of the organization;
  • Lesser punishments for small organizations and furthermore lesser filing expenses.
Winding Up

Winding up or liquidation is the method involved with dissolving an organization. In this process, the Company’s resources are gathered and offered to pay its obligations. A Company can be ended up in two ways. To begin with, the Court can compulsorily end up an organization. The subsequent way is known as “voluntary ending up” in which the investors or the lenders of the Company could themselves at any point apply to end up the Company.

End

As expressed toward the start of this blog, the changes to the standards overseeing One Person Companies will come into force from the first day of April 2021. In her financial plan discourse, Finance Minister Nirmala Sitharaman communicated that permitting OPCs to develop with next to no limitations on settled up capital and turnover will help new businesses and trailblazers.