1. Home >
  2. Apps >
  3. Groups >

One Person Company Now Possible With Indian Companies Bill 2011 (PDF)

Question asked by Kaustubh Katdare in #Coffee Room on Dec 19, 2011
Kaustubh Katdare
Kaustubh Katdare · Dec 19, 2011
Rank A1 - PRO
The companies Bill 2011 should bring a great news to solo entrepreneurs aka solopreneurs. Ministry Of Corporate Affairs of India will now allow one person company aka OPC; which means you won't need partners to form a corporate entity aka corporation. Here's what the companies bill 2011 says -

Clause 3. — This clause corresponds to section 12 of the Companies Act, 1956 and
seeks to provide minimum number of persons to form a public or private (including One
Person Company) (OPC) for any lawful purpose, by subscribing their names to the memorandum. Memorandum of OPC shall indicate the name of a person who shall become member, in the event of death of the single member. However, the other person whose name would reflect in the Memorandum of OPC shall be required to give prior written consent in this regard. He shall have the right to withdraw his consent. It shall be duty of the member of the OPC to intimate the Registrar any change in name of person already mentioned in Memorandum. The companies formed under this clause may be limited by shares or limited by guarantee or an unlimited company.

Clause 453.— This clause corresponds to section 631 of the Companies Act, 1956 and seeks to provide punishment for improper use of the title words, ‘limited’, ‘private limited’ or ‘OPC limited’ with fine which shall not be less than five hundred but may extend to two thousand for everyday on which that name has been used.

Logically 'one person company' sounds little weird. If you wish to form a one person company, then you'd need -

  • The name of your corporation
  • The nature of your business
  • Nominee; in case of casualty
The biggest pain point this will solve is that the technopreneurs with an idea won't have to search for co-founders to get started. Posted in: #Coffee Room
Praveen Kumar Purushothaman
Rank A1 - PRO
Woah! This is awesome one by our Indian Government! 😀
Gandalf
Gandalf · Dec 19, 2011
Rank C2 - EXPERT
Great Move
Harshad Italiya
Harshad Italiya · Dec 20, 2011
Rank A1 - PRO
These move surely encourage some start-ups. 👍 Thanks for sharing this Biggie. 😀
Suresh Manickam
Suresh Manickam · Dec 26, 2011
Rank D2 - MASTER
Yeah, great one.
patel dhara
patel dhara · Apr 6, 2013
Rank E2 - BEGINNER
Hey , I am going to open my own start up. can anyone please suggest me that, is it compulsory to register the company as a pvt ltd? or we can work without pvt ltd tag? what should be the great option?
Kaustubh Katdare
Kaustubh Katdare · Apr 6, 2013
Rank A1 - PRO
patel dhara
Hey , I am going to open my own start up. can anyone please suggest me that, is it compulsory to register the company as a pvt ltd? or we can work without pvt ltd tag? what should be the great option?
No, it's not compulsory but sooner or later you will have to register an entity to do business. It could be a sole proprietorship or partnership or private corporation - check out the difference between them here -
patel dhara
patel dhara · Apr 6, 2013
Rank E2 - BEGINNER
Kaustubh Katdare
No, it's not compulsory but sooner or later you will have to register an entity to do business. It could be a sole proprietorship or partnership or private corporation - check out the difference between them here -
Thanks, But after seeing this video, i have one query,I am alone going to start the company and it is kind of software work.So should i go ahead for registration at beginning only so later on i can concentrate on my project work? or later on after some experience i could go ahead? I have applied for DIN number but now i am confuse about the next step as I cant understand the terms like digital signature under CS/CA, etc... I have seen lots of consultancy who works for us but i want this to be done by me so i can understand the whole scenario in legal stuffs before start-up.
Kaustubh Katdare
Kaustubh Katdare · Apr 6, 2013
Rank A1 - PRO
I'd say obtain the DIN and don't rush into forming a company. Build your prototype/service and find clients. eLagaan offers all the services you need and they're startup friendly.

If not, I'd recommend that you should hire a CA and they'd help you with all the formalities (including those that involve CS). It'd be a little costlier affair but you will have someone to talk to in person.

Don't fret over getting registration. CrazyEngineers got incorporated 4 years after running as a hobby website - and working with a few clients.
avii
avii · Apr 6, 2013
Rank B2 - LEADER
patel dhara
Thanks, But after seeing this video, i have one query,I am alone going to start the company and it is kind of software work.So should i go ahead for registration at beginning only so later on i can concentrate on my project work? or later on after some experience i could go ahead? I have applied for DIN number but now i am confuse about the next step as I cant understand the terms like digital signature under CS/CA, etc... I have seen lots of consultancy who works for us but i want this to be done by me so i can understand the whole scenario in legal stuffs before start-up.
Wow, its really good to see a startup combination of single woman + software [and that too not from CS !] 👍

Initially you don't have to worry about all these things. Since you have already applied for DIN, IMO, you don't need anything further.

Take up any interesting work [how big or small] that comes in your way
Build a portfolio of your work
Have a clean, simple & kickass website that showcases your works & reflects your company etc
Build clients & make sure you have satisfied them & take testimonials.

Building reputation is really important in beginning.

Wish you all the best for your venture 😀
Kaustubh Katdare
Kaustubh Katdare · Oct 17, 2015
Rank A1 - PRO
I'm curious to know if anyone on CrazyEngineers has registered one person company? I'm mostly interested in knowing your experience of registration; whether you were able to get everything done online and what are the documents you've been maintaining as a part of compliance.

You must log-in or sign-up to reply to this post.

Click to Log-In or Sign-Up