In this article, we have tried our best to describe the role of the nominee in an OPC, as well as other detailed information. You can also find here the necessity documents required to fill the consent form and its procedure.
A nominee is an essential part of a one person company. To register a one-person corporation, a single director must nominate a nominee for the specific entity. Because there is only one director in a one-person business, the nominated or designated person will become a member of the firm if the subscriber dies or becomes incapacitated. The Ministry of Corporate Affairs selects a few firms and then publishes a nominee consent form depending on the situations. The process is carried out while forming a one-person firm.
Nominee role in a one-person company
If the only promoter of a company dies or becomes incapacitated, he or she appoints a nominee in the one-person corporation to succeed in place of the members. The nominee must not be a permanent resident of another country. He must be both an Indian citizen and a resident of India, and he must be over the age of 18.
If a person wishes to be nominated for the post of nominee, they must provide a PAN card copy, a copy of their address proof, and a copy of their residence proof, along with any other required documents. The proof which an applicant provides must hold all the current information or it should not be old more than two months.
Other permissible forms of address evidence include a candidate passport, driver’s licence, voter ID card, ration card, and aadhar card. Bank statements, current electricity bills, and telephone bills are examples of documentation that can be given as proof of residence by the candidate.
FORM INC – 3 or a nominee consent form
- An individual must complete and publish the consent form digitally to the MCA portal if a one-person firm is established into a legal corporation or is in the stage of incorporation.
- He must agree and make specific declarations in order to receive consent. Consent is extremely vital.
- Signing and approving an application for membership in a one-person company is required. A member will lose contract rights if they die or become unable to contract. The nominee is an Indian citizen and a resident of India.
- Also, the nominee should not have any case records or criminal records, and he or she should not have been convicted of any crime. This should be related to promotion, establishment, and management of a business.
- Under the Companies Act, Applicants must not be proven guilty of any crime, fraudulent, or breach of contract or obligation to any firm. It may also differ depending on previous business laws or LLP in the previous 5 years.
- While applying, that individual must not be a nominee of any other OPC.
- The eligibility criteria for becoming the nominee of a one person firm must be met, as well as any queries.
Note: Anyone applying for the position of nominee should be aware that the nomination can be withdrawn without his or her agreement.
Filling out the nominee consent form
To properly file the nominee consent form, the following actions must be taken:
- The INC- 3 form must be downloaded first.
- The form INC – 3 must be downloaded from the website or MCA portal
- INC- 3 form must be filled in pdf format.
All info requested on the INC-3 FORM must be filled out and submitted online using Adobe Acrobat.
Once the INC- 3 form has been completed, the following papers must be attached:
- An individual must provide his/her Photocopy of PAN card
- An individual must provide his or her Address verification
- An individual must provide his or her Proof of residency
All self-attested copies of papers must be attached to the INC -3 form in Adobe Acrobat format.
- The completed INC-3 form is now printed.
After filling out all of the facts and information and attaching all of the relevant papers, the INC-3 form must be printed, with a total page count of three.
- The INC-3 form, as well as other incorporation documents, must now be posted to the MCA portal.
Frequently Asked Questions
1. Who is eligible to be a nominee?
As per the Companies’ Rule 3 (Incorporation) only a natural person (should not be less than 18) Person Resident in India;
Person Resident in India;
2. What criteria are used to determine Person Resident in India?
Companies (Incorporation) Rules 2014, Rule 3, Section 1 specifies that a “Person Resident in India” is defined as someone who has spent at least 182 days in India in the past financial year.
3. In the case of an OPC, would it be necessary to appoint a Nominee?
In the form INC-3, you must include the name and consent of a person (who must meet the criteria outlined above) at the time of incorporation.
Members and the OPC may revoke the nominee’s consent at any time.
4. How can nominees be changed?
The following circumstances must be met for a new nominee to be nominated.
In the event that the nominee withdraws his consent:
- In the event a member withdraws consent to be nominated, a replacement nominee must be nominated within 15 days of the withdrawal notice being received by the company.
- The firm shall file notice of withdrawal of consent in Form INC 4 with the Registrar before 30 days of receiving notification of withdrawal of permission, along with consent of replacement nominee in Form INC 3.
If a single member changes their nominee on their own:
- By giving notification to the business, a sole member may change the name of the person he nominated (nominee) at any time, and nominate a new nominee with his prior consent in Form INC 3.
- The firm must notify the Registrar of the change in Form INC 4 before 30 days after receiving information of the change, as well as the permission of the new nominee in Form INC 3.
In the case that a member dies or is unable to sign a contract:
- If a sole member dies or becomes unable to enter into contract for any reason, his nominee becomes a member of One Person Company, and such new recruit must designate a new nominee in Form INC 3 with his prior consent in less than 15 days of becoming a member, who will become a member of such company in the event of his death or inability to enter into contract.
- Before 30 days of the change in membership, the firm must file with the Registrar a notification of such ceasing and designation in Form INC 4, as well as the permission of the new nominee in Form INC 4.
All the information provided is for an individual acknowledgement. If you want to know more about nominees or any kind of service needed. The Vakilsearch team is always there to hear you out.