Who is Eligible to Become a Member of an OPC in India?

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. 

What are the Pre-Conditions for the Incorporation of OPC?

1. The name of OPC must include the word “OPC”, in brackets, like RSJ Corporate Consultants Private Limited; 
2. OPC members shall include Natural Persons; Indian Citizen.
3. The nominee for Sole Member of OPC is A natural person; and an Indian Citizen.
4. Only one OPC can be available to a natural person.
5. Members and nominees should not be minors
6. OPC can’t be incorporated or converted into a Section 8 company. 
7. OPC cannot perform non-banking financial investment activities and investments in securities of corporate bodies.
8. 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

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.
• 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.

Read more

• Difference Between Sole Proprietorship and OPC
• Private Limited Vs. LLP Vs. OPC
• Advantages of OPC