ONE PERSON COMPANY

One Person Company was recently introduced as a strong improvement over the sole proprietorship. It gives a single promoter full control over the company. This person will be the only director and shareholder (there is a nominee) holds 100 percent shareholding. The company incorporation Rules provide that only a natural person who is a resident of India and citizen of India can form a one person company. It means that other legal entities like companies or societies or other corporate entities (foreign citizens) cannot  form a one person company. A person cannot have two different one person companies in his name. The sole shareholder shall also be the sole director in the one person company.

               The person forming the one person company has to nominate   with his written consent who, in the event of  death or inability to contract of the owner of the one person company, shall come forward and take over the reins of the one person company. If the nominated person is already a member of another one person company , at the same time by virtue of rules has to decide within 6 months which one person company he/she  has to continue.
It gets freedom from complying with many requirements as normally applicable to other private limited companies. Annual returns can be signed by the Director himself instead of a company secretary.

INCORPORATION
DIN – Director Identification Number, DSC - Digital Signature Certificate
Name approval from MCA and Consent of the nominee
Memorandum and Articles and other required documents.
Final  incorporation certificate.

When the company reaches a paid up capital of 50 lakh rupees or more when the average turnover of the company which is Rs.2 crore or more  for a period of 3 years then the company shall be converted into a private limited company after making the changes in the memorandum of association and article of association.

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