Description
In case the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into a private or public company.
Is OPC a private company?
“One Person Company” means a company which has only one person as a member. An OPC is incorporated as a private limited company, where there is only one member and prohibition in regard to invitation to the public for subscription of the securities of the company.
The concept of One Person Company (OPC) allows a single person to run a company limited by shares while a Sole Proprietorship means an entity which is run and owned by one individual and where there is no distinction between the owner and the business.
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