CH-2

INCORPORATION OF CO. &

MATTERS INCIDENTAL THERETO

What we will discuss in this lesson :

• What is One Person company(OPC)?
• Provisions in respect to formation of OPC
• Questions
 WHAT IS ONE PERSON COMPANY(OPC)?

Only One Private Encourages Procedural

person as Company in entrepreneurship requirements
a member. nature. & are
corporatisation. simplified
through
exemptions.
 PROVISION IN RESPECT OF
FORMATION OF OPC
MOA
MOAshall Nominee
Nomineeshall
shallgive Nominee
shall give Nomineehashasright
right
include
includename prior
priorwritten totowithdraw
name written withdrawhis
his
ofofNominee.
Nominee. consent
consent&&shall
shallbe
be consent.
consent.
filed
filedwith
withROC.
ROC.
Sole
Solemember
member&&
Sole
Solemember
membercan Change
Changeinin Nominee
any time change
can
the Nominee not Nomineeshall
shallbebe
any time change the Nominee not Natural
Naturalperson,
person,Indian
Indian
name
nameofofNominee deemed
deemedtotobe citizen
by
Nominee be citizen&&Indian
Indian
bygiving
givingnotice
noticetoto Alteration
Alterationinin resident(stayed in India
resident(stayed in India
Co.
Co.&&ROC MOA. for
ROC MOA. fornot
notless
lessthan
than182182
Natural
Naturalperson
personshall
shall IfIfmember
memberofofOPCOPC Minor shall not be
not Minor shall not be
notbe
bemember
memberoror becomes
becomesmember
memberinin member
memberorornominee
nominee
nominee
nomineeofofmore another
anotherOPC,
OPC,he heshall ororcan
than one OPC
more
at a meet
shall canhold
holdbeneficial
beneficial
than one OPC at a meeteligibility
eligibility interest.
interest.
time.
time. criteria within 182
criteria within 182
days.
days.cannot carry out
OPC can convert
OPC can convert OPC
OPC cannot carry out OPC cannot
OPC cannot
ininany
anyother
otherform
form Non-Banking
Non-Banking voluntarily
voluntarilyconvert
convert
ofofcompany
company Financial
FinancialInvestment
Investment into
intoany
anyother
otherCo.
Co.
except
exceptSec.8
Sec.8 activities.
activities. unless
unless22years
yearshave
have
Company.
Company. expired.
expired.

NOTE: OPC shall compulsorily convert itself in other form if its

PUC exceeds INR 50 Lac or annual turnover exceeds INR 2
 QUESTIONS ?
Q.1 What if Paid up capital of OPC increased to INR 55 Lac but 2
years is not lapsed from incorporation ?
Ans. It shall compulsorily convert itself in any other form of Co.
irrespective of period from incorporation.
Q.2 Can OPC have only 1 director ?
Ans. As OPC is private co. & private co. shall have min. 2 director but
in case of OPC it can have only 1 director. This exemptions is
provided because the concept behind this is to encourage
corporatisation.