One Person Company The long awaited-awaited Companies Bill, 2013 has been approved on 29th august, 2013. The new law will simplify the existing Companies Act, 1956 which has been very complex. It provides 33 new definitions. Many new amendments have been made in the Companies Bill, 2013. Here we are providing some knowledge on the recent amendments made and the new clauses and definitions introduced. Hence this article is on â€œONE PERSON COMPANYâ€ newly introduced in companies act, 2013. Some of the key highlights of such company are as follows:- ONE PERSON COMPANY:- Such a company has been introduced to permit entrepreneurship of a single individual benefit of corporate form of organization. According to clause 2(62) of the Companies Bill, 2013 â€“one person company means a company which has only one person as a member. It is a one shareholder corporate entity, where legal and financial liability is limited to the company only. Some important features in this regard are:
- It is formed as a private limited company and has only one person as a member.
- The words â€œOPCâ€ should be mentioned in the name of such a company.
- Such a company should be formed for a lawful purpose and shall have minimum 1 director.
- The annual return of such a company must be signed by a Company Secretary or by one director if there is no Company Secretary.
- A one person company, small company and dormant company shall be deemed to have complied with the provisions if atleast one meeting of the board of directors has been conducted in each half of a calendar year and gap between the two meetings must be not less than 90 days.
- Where one person company enters into a contract with the sole member of the company who is also a director, shall inform the registrar about every such contract within 15 days of the date of approval by the board.
- The financial statement, including consolidated financial statement, shall be approved by the board and signed by only one director, for submission to the auditor for his report.
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