Govt Easing Registration Norms, Cutting Penalty for One-Person Company

After completing one year, the one-person company (OPC) concept of companies’ act 2013 has not responding very well. The concept was included to boost up the small entrepreneurs to corporatize their business. But since February-end only 1953 OPC with collective authorized capital of Rs 44.83 crore applied.

               

  In such a situation govt. has taken a few measures to boost the number of OPC in India. It simplifying the process and toning down the penalties. Already OPCs have been granted exemption of not including cash flow statement in financial statements.

        

  The penalty has been reduced to Rs 5000 and the daily fine to Rs 500 from Rs 10000 and Rs 1000 respectively.

           

  The new companies act made it legal to set up OPC with the paid-up capital of less than Rs 50 lakh and annual average revenue not more than 2 crore in three consecutive year preceding its incorporation.