The concept of One Person Company (OPC) is a new way of business, introduced by The Companies Act, 2013 [No.18 of 2013], it enables Entrepreneur(s) carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework.
Features of One Person Company (OPC)
Who are an Indian citizen and resident in India shall be eligible to incorporate a One Person Company.
Explanation: 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 calendar year.
2. Nominee for the Shareholder:
The Shareholder shall nominate another person who shall become the shareholders in case of death/incapacity of the original shareholder. Such nominee shall give their consent and such consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and resident in India, shall be a nominee for the sole member of a One Person Company.
Must have a minimum of One Director, the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15 directors.
Why Choose OPC:
A) Only one member is required
B) Unaffected by the death of member or change in ownership
C) Easy to set up and maintain comparatively
D) Limits the liabilities of its members
E) Minimal Paperwork is required
F) Can act as Stockbroker or Sub-broker
G) Not many compliances