One person company must notify and initiate conversion when capital or turnover thresholds are exceeded. Form INC-5 requires a one person company to notify the registrar when its paid-up share capital exceeds fifty lakh rupees or its average annual turnover exceeds two crore rupees; upon exceeding either threshold the company ceases to be a one person company and must be converted into a private or public company. The filing must state the date and amount of the breach, be digitally signed by an authorised officer, and attach a board resolution, the latest attested financial statement, and, if applicable, a chartered accountant's certificate of average turnover, together with a declaration of compliance and acknowledgement of penalties for false statements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
One person company must notify and initiate conversion when capital or turnover thresholds are exceeded.
Form INC-5 requires a one person company to notify the registrar when its paid-up share capital exceeds fifty lakh rupees or its average annual turnover exceeds two crore rupees; upon exceeding either threshold the company ceases to be a one person company and must be converted into a private or public company. The filing must state the date and amount of the breach, be digitally signed by an authorised officer, and attach a board resolution, the latest attested financial statement, and, if applicable, a chartered accountant's certificate of average turnover, together with a declaration of compliance and acknowledgement of penalties for false statements.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
