One Person company

One Person Company (OPC) Registration in India

As per section 2 (62) of the Companies Act, 2013,One Person Company means a company which has only one person has a member.OPC can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser than that of a private company and entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity.

A single person company can work as a company without the complexity of having partners. This encourages more people to come forward to commence a business. The OPC is fit for small businesses where the turnover is not likely to cross ₹2 crores. In OPC Registration it’s important to note that the nominee or the director should be Indian Resident.

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC where the term "resident in India" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one financial year.

No person shall be eligible to incorporate more than one OPC, that is, no person shall be eligible to become member in more than one OPC. So a natural person shall not be a member and nominee of more than a One Person Company at any point of time. Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of 180 days, i.e., he/she shall withdraw his membership from either of the OPCs within 180 days. Form INC-4 shall be filed in case of withdrawal of consent by the nominee or in case of intimation of change in nominee by the member.

Following persons shall not be eligible to become member of OPC:

  • Minor
  • Foreign Citizen
  • Non –Resident
  • A person incompetent to enter into a contract
  • Person other than Natural Person