According to the Companies Act 2013, a company consisting of just one member is defined as a “One Person Company”. Private companies are defined as one-person companies. A one-person company can be incorporated by any individual who has citizenship in India. The members of an OPC must be the same person. During the course of an OPC, the presence of only one member is permitted. Upon incorporation, the sole member of the board will be a nominee appointed by the company.
There is no limit for one-person companies if the following requirements are met:
Natural persons and Indian citizens are eligible for OPC.
Minors, foreigners, persons with incapacitating mental disabilities, and non-natural persons (such as LLCs).
What should I do if I want to incorporate a one-person business?
- RSJ Corporate Consultants Private Limited must include “OPC” in its name;
- it must have Indian members.
- Candidate for the position of Sole Member of the OPC is a natural person who is a citizen of the Republic of India.
- Each individual can hold only one position on the OPC.
- Minors cannot be members of the OPC.
- Section 8 companies cannot join the OPC.
- Investments in corporate securities and non-banking financial activities are not permitted by the OPC.
- Only members of the OPC can nominate candidates. If this nominee dies or becomes incapacitated, he or she will join OPC.
The following are important details:
- Indian citizens, Indian residents, or nominees of the OPC are eligible to apply.
- Minors are not eligible to form the OPC. Children are deemed incapable of understanding and entering into contracts by law.
- For an OPC (One Person Company) to be formed, it is important to meet a number of requirements.
- The company must be owned by a natural person. The only person that can form an OPC is the owner of the company.
- A citizen of India is required to form one.
- Indian citizens are not eligible to apply. The applicant must also have lived in India for a minimum of 182 days in the previous calendar year preceding the application.
- Only one person can be a member of the ruling party in a given year. Currently, it is not possible for an individual to belong to more than one OPC at one point in time. There must also be a nominee in order to become a member. In the event a trustee becomes incapacitated or dies, the nominee becomes the new trustee.
- OPC is therefore entirely dependent on the role of the member. Due to the severity of being the only one in the entire group, junior members are not allowed to join the OPC. It is felt that minors would not understand the concept of the OPC.