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Types of Companies under New Companies Act-2013

With new testament of Corporate law in force has introduced several different types of companies with special features.

ONE PERSON COMPANY (OPC)
One Person Company is defined in Sub- Section 62 of Section 2 of The Companies Act, 2013, which reads as follows:
'One Person Company means a company which has only one member'
It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member. All the provisions related to the private company are applicable to an OPC, unless otherwise expressly excluded.
Ø  Only a natural person who is an Indian citizen and resident in India-
ü  shall be eligible to incorporate a One Person Company;
ü  shall be a nominee for the sole member of a One Person Company.
Ø  No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company.
Ø  No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest.
Ø  The person nominated by the subscriber or member of a One Person Company may, withdraw his consent by giving a notice in writing to such sole member and to the One Person Company
Ø  Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any Body Corporate.
Ø  Where the sole member of One Person Company ceases to be the member in the event of death or incapacity to contract and his nominee becomes the member of such One Person Company
Ø  OPC can be voluntarily converted into Public and Private Limited if paid up capital is equals or more than Rs. 50 lacs or Average Turnover equals or exceeds Rs. 2 crores or two years have expired from the date of incorporation.

PRIVATE COMPANY
ü Defined under Section 2(68) of the Companies Act, 2013
ü Minimum two persons with maximum limit of 200 members , minimum 2 Directors and minimum Paid Up Capital of Rs. 1 lakh
ü An application for the reservation of a name shall be made to Registrar
ü An application shall be filed, with the Registrar within whose jurisdiction the registered office of the company is proposed to be situated, for incorporation of company
ü The memorandum and articles of association of the company shall be signed by each subscriber to the memorandum, who shall add his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature.
ü Declaration by an advocate, a Chartered Accountant, Cost accountant or Company Secretary in practice that all the requirements of Companies Act, 2013 have been complied with, have to be filed with Registrar
ü The particulars of each person mentioned in the articles as first Director of the company and his interest in other firms or bodies corporate along with his consent to act as Director of the company shall be filed with Registrar
ü Physical verification of the registered office shall be mandatory
ü On receipt of Certificate of Incorporation, a declaration need to be filed by the Director for obtaining Certificate of Commencement of Business

PUBLIC COMPANY
ü  Defined under Section 2(71) of the Companies Act, 2013
ü  Minimum 7 members, minimum 3 Directors and minimum Paid Up Capital of Rs. 5 lakhs
ü  Rest of the incorporation provisions as applicable to private company will apply similarly to Public Company

SMALL COMPANY
ü   Defined under Section 2(85) of the Companies Act, 2013
ü   The Paid up capital of Small Company will be more than Rs. 50 lakhs but less than Rs. 5 crores
ü   The Turnover of Small Company will be more than Rs. 2 crores but less than Rs. 20 Crores
ü   The Small Company cannot be formed with charitable objects
ü   Rest of the incorporation provisions as applicable to private company will also apply to Small Company
For any further details w.r.t. incorporation, compliance and legal structure of your company, please feel free to contact at admin@equicorplegal.com



Comments

  1. The One Person Company or can hold share with beneficial interest.startups

    ReplyDelete
  2. All the shares in the One Person Company are held by the one shareholder of the Company which includes share with beneficial interest.
    For detailed analysis of One Person Company, kindly visit:
    http://equicorplegal.blogspot.in/2014/05/one-person-company.html

    ReplyDelete

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