What is a person's company? Advantages / disadvantages, rules of registration, detailed discussion

 What is a person's company? Advantages / disadvantages, rules of registration, detailed discussion

Everyone knows that a private limited company requires a minimum of 2 members and a public limited company requires a minimum of 6 members, but the Companies Amendment Act 2020 provides for a new type of company, ie one person can open a company alone. Such a company is called One-Person Company or OPC.

So in today's In the article we will try to find out what is this OPC or one-part company? How can such a company be formed? How is its board formed? Etc. About the details?

 

Although the introduction of one person company in different countries of the world has been around for a long time, it is a brand new addition for Bangladesh. The 2nd Amendment to the Companies Act, 1994 adds the tenth- (a) clause to the one-person company or one-person company from sub-section (a) to (l) of section 392.

 

OPC / OPC (ONE PERSON COMPANY)

 

A person with natural rights can only form an OPC. Under the Companies Act, only one person will own 100% of the shares in the company. However, the company memorandum must name one of its heirs or nominees. In this case, there will be an opportunity to change the nominee by informing the registrar of RJSC.

 

He will become the owner of the company after the death of the shareholder. If the nominee dies before the death of the shareholder, another successor or nominee can be determined.

 

Only one person who owns the entire shares will be a member of the board of directors of this company. Managers, company secretaries and other employees can be appointed to manage one person company. One person will call the company director at least one board meeting every 6 months.

 

To form an OPC, the minimum paid-up share capital will be Tk 25 lakh, and the maximum paid-up capital will be Tk 5 crore. And the amount of annual turnover in the previous financial year should be between a minimum of BDT 1 crore and a maximum of Tk 50 crore.

 

If the paid up share capital of One Person Company is more than Tk 5 crore or the annual turnover is more than Tk 50 crore, then the One Person Company can be converted into a private limited company or a public limited company subject to fulfillment of the required conditions.

 

What are the documents required to apply for One person Company?

 

1. National Identity Card

 

2. Mobile number

 

3. Picture of the applicant

 

4. Email address

 

5. Copy of tin certificate of the applicant etc.

 

You do not need to have a trade license in advance to start OPC. After opening a company, you have to apply for a trade license in the name of that company.

 

All shares of an individual company may be transferred to a natural entity only and the provisions of section 37, with necessary adaptations, shall apply to the transfer of shares.

 

 

 

 

 

Advantages of one person company:

One person company has all the benefits. What are the advantages-

 

Biggest The biggest advantage is that you can keep all the money or profit to yourself.

· Another advantage is that you are the sole decision maker of your company. You can make any decision on any issue yourself.

 

· And it’ll speed up the process, since you are a board member, you don't have to wait for someone else's approval. On the other hand, in order to take such a decision in a private or public limited company, the consensus of the board members needs a majority or 2/3 majority.

 

The privacy of the business is very well protected.

 

In the case of a sole proprietorship business, the liability of the owner is unlimited, but in the case of a one-person company or OPC, the liability of the shareholder is limited.

 

Winding-up can be decided quickly.

 

 

 

Disadvantages of one person company

 

A person can only open one OPC.

 

There may be a possibility of combining personal assets or liabilities with business assets due to being a single person.

 

· Besides, the rules of this amended law have not come yet, there is a need for clarity on many issues, how the tax will be on the shareholders of one person company. Whether his personal income will be taxed, or corporate tax will be levied on the company's income, or double taxation, etc., will hopefully be known when the rules are published.

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