This article aims to provide an overview of the one-person company and who are eligible, or more importantly, the eligibility requirements and conditions, to become a member of an OPC.
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OPC
According to Section 2 (62) under the Companies Act 2013, a “OPC” is a company that has one member. OPC is essentially a private company. OPC can be incorporated utilizing a natural person who is an Indian citizen. Only one person can exist within an OPC. This person will serve as the sole member of that OPC. A nominee for the sole member will also be appointed at OPC incorporation.
Are you a dynamic Person Eligible to Incorporate OPC:
OPC is only available to natural persons and Indian citizens.
Not eligible to incorporate OPC in India: Minors; Foreign Citizens; Persons with incapacitating mental abilities; Persons not natural persons (Example company, LLPs).
What are the Pre-Conditions for the Incorporation of OPC?
- The name of OPC must include the word “OPC”, in brackets, like RSJ Corporate Consultants Private Limited;
- OPC members shall include Natural Persons; Indian Citizen.
- The nominee for Sole Member of OPC is A natural person; and an Indian Citizen.
- Only one OPC can be available to a natural person.
- Members and nominees should not be minors
- OPC can’t be incorporated or converted into a Section 8 company.
- OPC cannot perform non-banking financial investment activities and investments in securities of corporate bodies.
- A member of OPC may appoint an OPC Nominee. This nominee shall become a member of OPC in the event of death or incapacity. Nominated name (viz. MOA shall mention the nominee From dreamer to doer You Can Complete OPC Registration on our Portal!
Other Important Details to remember from Vakilsearch:
- A natural person should be an Indian citizen, resident in India, entitled to serve as a member otherwise nominee of the OPC.
- A minor cannot form an OPC in India. This aspect is because the law considers children incapable of understanding and entering into contracts.
- If we get into the details, you must meet the following conditions to form an OPC.
- The person must be a natural person. This factor means that only individuals can form an OPC.
- The applicant must be an Indian Citizen.
- The person must be an Indian Resident. Further, a resident is as anyone who has been in India for at least 182 days during the preceding calendar year.
- As the given name implies, an OPC has a single member. An OPC is not able to have more than one member. This aspect is why there is also the concept of a nominee. The nominee will take over if the member is incapacitated or dies. You Need to Check the detailed process of Company Registration Online in India!
- If you get the point, OPC is dependent on the member role. A minor cannot be a member of OPC as being the only one is too severe. Law assumes that a minor is incapable of understanding this
