Counsel
Ask an expert!
Legal, accounting and compliance advice from qualified professionals.
There is no rule stating the minimum paid-up capital. Your paid-up capital can be as low as Re.1 and can go up to the limit of Authorized share capital. Hence you can have Rs.25,000 paid-up capital and Rs.10 Lac Authorized share capital.
If you have a higher Authorized share capital whenever you want to increase the paid-up capital of th...
Wazzeer Professional Network
ProfessionalNEED TO KNOW ABOUT OPC PAID UP & AUTHORISED CSPITAL CAPITAL & APPOINTMENT OF AUDITOR & REMUNERATION OF SINGLE DIRECTOR
Q1: Pls explain about paid up &authorised capital,can my paid up capital can be 25000 rs and authorised capital 10 lakh in OPC? Q2: what are the benefits of having 1 lakh authorised capital over having 10 lakh authorised capital? Q3: If OPC has only one director, then what happens if we fail to appoint an auditor within 30 days of Incorporation? If the Auditor is appointed do we have to give him a monthly salary? Can we change auditor within 1or 2 months? Q4: If my company makes 1 lakh profit within 2months, can I use the money for my personal use?/ Is there any restrictions in using company's money for personal use? Q5: As being only 1 director in the company, can I take profit of the company as salary? ie, can I take Rs.50000 as salary in 1 month and the next month can I take a salary of Rs.75000?/ is there any limit for salary or fixed amount of each month had to be taken? Q6: as in OPC 100% share is held by me, can I sell shares for money to some other person or firms? if not then whats the logic of authorised capital in OPC?
-
Wazzeer Professional Network
ProfessionalThere is no rule stating the minimum paid-up capital. Your paid-up capital can be as low as Re.1 and can go up to the limit of Authorized share capital. Hence you can have Rs.25,000 paid-up capital and Rs.10 Lac Authorized share capital.
If you have a higher Authorized share capital whenever you want to increase the paid-up capital of the company you can do it directly by Rights issue process. Otherwise, you will have to increase Authorized share capital first and then do the rights issue process.
The appointment of Auditor within 30 days is compulsory. Otherwise, a penalty of Rs.100 per day of delay is levied. Appointing an Auditor does not mean taking him on the payroll. Financials of every OPC and Private limited company should be Audited every year. This Audit is referred to as Statutory Audit. Appointment of Auditor is the process of informing RoC, the details of Auditor who will be conducting your statutory Audit. The Auditor will not even visit your office every day. Once a year he will conduct the Audit of the financials. For the first year of incorporation, Auditor is appointed only for that financial year. Subsequently, the Auditor is appointed for a period of 5 years. If you want to remove the Auditor the compliance is complex. However, the Auditor can voluntarily resign anytime.
No. First, the profit has to be declared, requisite tax needs to be paid. After this Dividend needs to be declared. Dividend distribution tax needs to be paid (Around 18%). After this Dividend can be transferred to shareholder's account.
As Director of the company, you can take any amount as salary. It is better to have a fixed salary and a variable bonus that can either be disbursed monthly, quarterly or annually. This variable bonus will give the flexibility in compensation you want.
An OPC can have only one shareholder and one nominee member (Optional). Hence, you cannot sell your shares partially to another individual or entity. However, you can transfer 100% of your shares to another individual. Even if you want to put your own money as equity capital in the company you can do so up to a maximum of Authorized share capital
over 2 years ago
View answer
NEED TO KNOW ABOUT OPC PAID UP & AUTHORISED CSPITAL CAPITAL & APPOINTMENT OF AUDITOR & REMUNERATION OF SINGLE DIRECTOR
Q1: Pls explain about paid up &authorised capital,can my paid up capital can be 25000 rs and authorised capital 10 lakh in OPC? Q2: what are the benefits of having 1 lakh authorised capital over having 10 lakh authorised capital? Q3: If OPC has only one director, then what happens if we fail to appoint an auditor within 30 days of Incorporation? If the Auditor is appointed do we have to give him a monthly salary? Can we change auditor within 1or 2 months? Q4: If my company makes 1 lakh profit within 2months, can I use the money for my personal use?/ Is there any restrictions in using company's money for personal use? Q5: As being only 1 director in the company, can I take profit of the company as salary? ie, can I take Rs.50000 as salary in 1 month and the next month can I take a salary of Rs.75000?/ is there any limit for salary or fixed amount of each month had to be taken? Q6: as in OPC 100% share is held by me, can I sell shares for money to some other person or firms? if not then whats the logic of authorised capital in OPC?
-
Wazzeer Professional Network
ProfessionalThere is no rule stating the minimum paid-up capital. Your paid-up capital can be as low as Re.1 and can go up to the limit of Authorized share capital. Hence you can have Rs.25,000 paid-up capital and Rs.10 Lac Authorized share capital.
If you have a higher Authorized share capital whenever you want to increase the paid-up capital of the company you can do it directly by Rights issue process. Otherwise, you will have to increase Authorized share capital first and then do the rights issue process.
The appointment of Auditor within 30 days is compulsory. Otherwise, a penalty of Rs.100 per day of delay is levied. Appointing an Auditor does not mean taking him on the payroll. Financials of every OPC and Private limited company should be Audited every year. This Audit is referred to as Statutory Audit. Appointment of Auditor is the process of informing RoC, the details of Auditor who will be conducting your statutory Audit. The Auditor will not even visit your office every day. Once a year he will conduct the Audit of the financials. For the first year of incorporation, Auditor is appointed only for that financial year. Subsequently, the Auditor is appointed for a period of 5 years. If you want to remove the Auditor the compliance is complex. However, the Auditor can voluntarily resign anytime.
No. First, the profit has to be declared, requisite tax needs to be paid. After this Dividend needs to be declared. Dividend distribution tax needs to be paid (Around 18%). After this Dividend can be transferred to shareholder's account.
As Director of the company, you can take any amount as salary. It is better to have a fixed salary and a variable bonus that can either be disbursed monthly, quarterly or annually. This variable bonus will give the flexibility in compensation you want.
An OPC can have only one shareholder and one nominee member (Optional). Hence, you cannot sell your shares partially to another individual or entity. However, you can transfer 100% of your shares to another individual. Even if you want to put your own money as equity capital in the company you can do so up to a maximum of Authorized share capital
over 2 years ago
Looking to hire a professional from our handpicked community?
Explore our services, submit your request and let us do the rest for you.