|What is One Person Company (OPC)?
|As per Companies Act, 2013, OPC means a company which has only 1 person as a member. OPC has only 1 member as the Member cum Director and a nominee.
|What is the eligibility criterion to incorporate OPC?
|Only a natural person who is:
- An Indian Citizen
- Resident in India (stay in India is for not less than 182 days during the immediate preceding 1 calendar year)
|Are there any restrictions on OPC?
|The following restrictions are imposed on OPCs:
- A person can’t form more than 1 OPC.
- A nominee in 1 OPC can’t be appointed as nominee in any other OPC.
- A minor cant become a member or nominee of OPC
- OPC can’t be converted into a Section 8 Company.
- OPC can’t carryout non Banking Financial Investment activities including investment in securities of any body corporate.
- The name of company incorporated as OPC should end with Private Limited (OPC).
|Can OPC convert to any other kind of Company?
|An OPC can convert to any other kind of Company subject to the following conditions:
- 2 years should have elapsed from incorporation of OPC prior to its conversion,
- Paid up capital of OPC is increased beyond Rs. 50,00,000.
- Average turnover exceeds Rs. 2,00,00,000 for the relevant period.
|Can OPC accept FDI?
|No, FDI is not allowed for OPC. If the OPC accepts FDI then it will lose its very nature of OPC.