As per section 2(62) of the Companies Act, 2013, “One Person Company” means a company which has only one person as a member. OPC is a package that combines the benefit of Sole Proprietorship and company form of business. One Person Company of sole-proprietor and company form of business has been provided with concessional /relaxed requirements under the Companies Act, 2013.
Documents Required for OPC Incorporation
We assist in incorporating OPC and Some of the Frequently Asked Question about OPC is enumerated below:
1] Who Can Start OPC?
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. For the above purpose, 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 financial year.
Therefore, only Indian Citizen who is resident can form OPC
2] A person can be a member of how many OPCs
A person can be a member of only one OPC.
3] What if a member of an OPC becomes a member of another OPC by virtue of being a nominee in that other OPC?
Where a natural person, being a member of a One Person Company becomes a member of another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days.
4] Is there any threshold limits for an OPC to mandatorily get converted into either private or public company
In case the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into a private or a public company.
5] How to intimate RoC that the OPC has exceeded the threshold limits and require conversion into a private or a public company and What is the time limit for filing form INC-5?
The OPC shall inform RoC in form INC-5 if the threshold limit is exceeded and is required to be converted into a private or a public company. Further Form INC-5 shall be filed within sixty days of exceeding threshold limits
6] Is there any form that is to be filed for the conversion of an OPC into a private or a public company?
Form INC-6 shall be filed by an OPC for the conversion of an OPC into a private or a public company.
Yes, the private company will also file form INC-6 for converting itself into an OPC. The paid-up share capital of the private company should not be exceeding fifty lakh rupees and should not have an average annual turnover of more than two crore rupees at the time of such conversion into OPC. The company shall be having one member and shall appoint one nominee to act as a member in case of death or incapacity of the member at the time of conversion into OPC.
7]What is the time limit for filing form INC-6?
Form INC-6 shall be filed within 30 days in case of voluntary conversion and within six months of mandatory conversion.