Things to be opt for One Person Company Registration
One Person Company
One Person Company is one of the types of a company, which more beneficial to the entrepreneur who starts his business in starting level. Why because the annual paid up capital is less and it provides more and more liabilities. Only a natural person who is an Indian citizen and resident in India-
- Shall be eligible to incorporate a One Person Company;
- Shall be a nominee for the sole member of a One Person Company.
For the purposes of this rule, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one calendar year. A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.
Where a natural person, being member in One Person Company in accordance with this rule becomes a member in another such company by virtue of his being a nominee in that One Person Company, such person shall meet the eligibility criteria specified in Sub-rule (2) within a period of one hundred and eighty days. No minor person shall become member or nominee of the One Person Company or can hold share with beneficial interest. Such company cannot be incorporated or converted into a company under section 8 of the Act. Such company cannot carry out Non-banking financial investment activities including investment in securities of anybody corporates. No such company can convert voluntarily into any kind of company unless two years have expired from the date of incorporation of OPC, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees.
Nomination by the subscriber or member of One Person Company
For the purposes of first proviso to sub-section (1) of section 3-
- The subscriber to the memorandum of a One Person Company shall nominate a person, after obtaining prior written consent of such person, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.
- The name of the person nominated under sub-rule (1) shall be mentioned in the memorandum of OPC and such nomination in Form No. INC. 32 along with consent of such nominee obtained in Form No. INC.3 and fee as provided in the Companies (Registration offices and fees) Rules, 2014 shall be filed with the Registrar at the time of incorporation of the company along with its memorandum and articles.
- The person nominated by the subscriber or member of a One Person Company may, withdraw his consent by giving a notice in writing to such sole member and to the One Person Company: Provided that the sole member shall nominate another person as nominee within fifteen days of the receipt of the notice of withdrawal and shall send an intimation of such nomination in writing to the company, along with the written consent of such other person so nominated in Form No. INC. 3.
- The company shall within thirty days of receipt of the notice of withdrawal of consent under sub-rule (3) file with the Registrar, a notice of such withdrawal of consent and the intimation of the name of another person nominated by the sole member in Form No. INC. 4 along with fee as provided in the Companies (Registration offices and fees) Rules, 2014 and the written consent of such another person so nominated in Form No. INC.3.
- The subscriber or member of a One Person Company may, by intimation in writing to the company, change the name of the person nominated by him at any time for any reason including in case of death or incapacity to contract of nominee and nominate another person after obtaining the prior consent of such another person in Form No. INC. 3, which provided that the company shall, on the receipt of such intimation, file with the Registrar, a notice of such change in Form No. INC. 4 along with fee as provided in the Companies (Registration offices and fees) Rules, 2014 and with the written consent of the new nominee in Form No. INC.3 within thirty days of receipt of intimation of the change.
- Where the sole member of OPC ceases to be the member in the event of death or incapacity to contract and his nominee because the member of such One Person Company, such new member shall nominate within fifteen days of becoming member, a person who shall in the event of his death or his incapacity to contract become the member of such company, and the company shall file with the Registrar an intimation of such cessation and nomination in Form No. INC. 4 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 within thirty days of the change in membership and with the prior written consent of the person so nominated in Form No.INC.3.