unit 1

1. UNIT -1
BBA A & B

31. One Person Company (OPC) is a company incorporated by a single person. Before
the enforcement of the Companies Act, 2013, a single person could not establish a
company. If an individual wanted to establish his business, he/she could opt only for
a sole proprietorship as there had to be a minimum of two directors and two
members to establish a company.
As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1
Director and 1 member. It is a form of a company where the compliance requirements
are lesser than that of a private company.
The Companies Act, 2013 provides that an individual can form a company with one
single member and one director. The director and member can be the same person.
Thus, one person company means one individual who may be a resident or NRI can
incorporate his/her business that has the features of a company and the benefits of a
sole proprietorship.
One Person Company

61. PUNISHMENT FOR IMPROPER USE OF
―LIMITED‖ OR ―PRIVATE LIMITED
• Punishment for improper use of ―Limited‖ or ―Private Limited.—
• If any person or persons trade or carry on business under any name or title, of
which the word ―Limited‖ or the words ―Private Limited‖ or any contraction or
imitation thereof is or are the last word or words, that person or each of those
persons shall, unless duly incorporated with limited liability, or unless duly
incorporated as a private company with limited liability, as the case may be,
punishable with fine which
• Shall not be less than five hundred rupees but may extend to two thousand rupees
for every day for which that name or title has been used.

62. • https://www.mca.gov.in/MinistryV2/stepstoformanewcompany.html