More Information about opc

Question

1. Is OPC or one person company same as sole proprietorship in law ??

2. What will be director's liability in OPC?? How much director is liable ??

3. If the company goes bankrupt, will the personal savings of directors be utilised to pay off NCD debenture holders and banks ??

4. Suppose an OPC has 50 lac capital. Out of it 1,lac is held by director. Can you calculate director's liability in the event of bankruptcy??

5. Is annual compliance mandatory for OPC??

6. Can OPC receive grant and donation?? Can it carry on non profit activities??

7. Can OPC issue bonds ?? Can it accept deposit from other companies??

8. Is there any restriction of OPC in trading activities?? Can OPC do any kind of business or some particular type of business??

9. Can OPC engage in law practice and/or legal education field ??

Please answer these questions with laws and case laws if any. Answer these questions one by one in the above manner.

Thank you

Answer 1

The concept of one person company (OPC) allows a single person to run a company limited by shares. A sole proprietorship is an entity run and owned by one individual without distinction between the owner and the business.

Unlimited liability: Directors will also be held personally liable to the third parties where their liability is made unlimited in MOA in pursuance of section 322(i.e. where Memorandum's scope is widened.

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