What are the exemptions available to OPC - One Person Company under the Companies Act 2013
An OPC shall be treated as a private company for all practical purposes except that it enjoys few exemptions under the Act. Few of them are given here
- Section 2(40) - OPC need not include Cash Flow statement in its Financial Statements
- Proviso to section 92(1) - In case a CS does not exist in the company, Annual returns could be signed by the director himself
- Section 96(1) - No need to hold AGM.
- Provisions related to AGM, EGM, Notice, procedures to conduct general meetings not applicable to OPC
- The Financial Statements of an OPC shall be signed by only one director irrespective of the number of directors. [ section 134(1) ]
- The directors shall be appointed as per the provisions laid down in the Articles of the OPC. If there are no provision relating to First director in the AOA, then the individual member of the OPC shall be deemed to be First director
- An OPC (if and only if having more than 1 director) must conduct at least 1 board meeting in each half of a calendar year with a gap of at least 90 days between 2 BMs.
- If OPC is has only 1 director, the provisions of section 173 (Meetings of board) and section 174 (Quorum for meetings of board) will not apply. [section 173(5)]
- Resolutions in a one-director OPC becomes affective as soon as it is entered in a minute book and signed by the one and only director himself.