Can OPC make investment?
Table of Contents
Can OPC make investment?
Alike any other company, an OPC can also invest in another company. An OPC is sub-category of Private Limited Company and by virtue of its status, it can invest in stake of another company and own the same.
OPC cannot acquire/invest in securities in its own name in other body corporate however member can invest in the shares of other body corporate. OPC cannot issue or allot shares to anyone except its member.
What are the advantages given to one person company?
The advantages of an OPC are as follows:
- Safety Net. According to the Companies Act, the liability of the single shareholder in an OPC is limited to the unpaid subscription money in his/her name.
- Succession.
- Market Value.
- Easy Credit Facilities.
- Easier Returns Filing.
- Tax Rate.
- Need for Change.
- Only One.
What are the disadvantages of a one person operation?
Disadvantages of One Person Company
- High Tax Rate. As a corporate form, you cannot avail of the tax slab advantage.
- Consistency Cost.
- OPC is included in Name.
- One Person Management.
- OPC Incorporation is allowed.
- Not suitable for high turnover.
Can one person company open demat account?
“One Person Company (OPC) as described under the Companies Act is eligible to be registered as a stock broker, provided it satisfies the condition of minimum two directors, as stipulated under… Securities Contract (Regulation) Rules, 1957,” NSE said in a circular. Further, OPCs can register as a sub-brokers too.
What is the limitation of one person company?
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 private or public company.