One Person Company

Only a natural person who is an Indian citizen (including NRIs) can form an OPC. Foreign nationals and corporate entities are ineligible. The person must be a major and cannot be a nominee in more than one OPC simultaneously.

A nominee is a mandatory requirement who becomes a member of the OPC if the sole member becomes incapacitated or passes away. The nominee must be an Indian citizen and provide written consent during incorporation. The sole member can change the nominee by filing the appropriate form with MCA.

An OPC provides limited liability protection, separating personal assets from business debts. It has a separate legal entity status, enhanced credibility with the 'Pvt. Ltd.' suffix, perpetual succession, and easier access to funding. Unlike proprietorships, personal assets are protected from business liabilities.

Mandatory conversion is required if the paid-up capital exceeds ₹50 lakh or the average annual turnover exceeds ₹2 crore for three consecutive years. Voluntary conversion is permitted after two years from incorporation, provided the mandatory conversion criteria are not triggered.

OPCs must maintain statutory registers, file annual returns with MCA, conduct statutory audits if turnover exceeds prescribed limits, file income tax returns, and comply with GST regulations. Unlike private limited companies, OPCs are exempt from holding annual general meetings and have relaxed board meeting requirements.

Yes, an OPC can receive FDI if it meets specific conditions under FEMA regulations. The company must be classified as an 'eligible startup' by DPIIT. FDI in OPCs is restricted compared to private limited companies, and prior government approval may be required in certain sectors.

There is no minimum paid-up capital requirement for incorporating an OPC. However, if the paid-up capital exceeds ₹50 lakh, mandatory conversion to a private limited company is triggered. This flexibility allows entrepreneurs to start with minimal investment.

Yes, while an OPC can have only one member/shareholder, it can have up to 15 directors. This allows for professional management while maintaining single ownership. However, the sole member retains complete control over strategic decisions.

Upon the death of the sole member, the nominee automatically becomes the member of the OPC. The nominee must intimate MCA and update the membership records. This ensures business continuity without complex legal procedures or dissolution.

No, an OPC cannot carry out non-banking financial investment activities, including investment in securities of any body corporate. The primary business must be operational, and the company cannot be formed for charitable purposes or as a not-for-profit entity.