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Microlesson · 5-min read

One Person Company (OPC) — Sec 2(62), Sec 3 & Rules

## One Person Company (OPC)

### 1. Definition — Sec 2(62)

A company which has only one person as a member.

### 2. Name Suffix

Name shall have the suffix '(OPC) Private Limited'.

### 3. Nominee Requirement (MoA)

MoA shall indicate:

  • Name of the other person (nominee);
  • With his prior written consent in the prescribed form;
  • Who shall, on the subscriber's death or incapacity to contract, become the member.

Written consent to be filed with the Registrar at incorporation along with MoA & AoA.

### 4. Eligibility of Member / Nominee

  • Must be a natural person who is an Indian citizen (resident in India OR otherwise — even NRIs who are Indian citizens are eligible).
  • 'Resident in India' = stayed in India ≥ 120 days during the immediately preceding FY.
  • A natural person shall NOT be a member of more than 1 OPC at the same time.
  • A natural person shall NOT be a nominee of more than 1 OPC at the same time.

### 5. Multiple-OPC Trigger Rule

If a member in OPC-1 becomes a member in OPC-2 (by virtue of being a nominee), he must meet the eligibility criteria within 180 days (i.e., resolve the conflict).

### 6. When Nominee Becomes Member (death / incapacity)

  • Appoint a new nominee within 15 days of becoming member.
  • OPC to inform RoC in Form INC-4 within 30 days of becoming member.

### 7. Withdrawal of Consent by Nominee

  • Nominee gives notice in writing to sole member and OPC.
  • Sole member nominates another person within 15 days.
  • Intimate company + obtain written consent of new nominee.
  • OPC informs RoC in Form INC-4 within 30 days of withdrawal.

### 8. Replacement of Nominee (voluntary change)

  • Member obtains written consent of new nominee.
  • Intimates company.
  • OPC informs RoC in Form INC-4 within 30 days of intimation.
  • Change is NOT deemed an alteration of MoA.

### 9. Conversion

  • OPC CANNOT be incorporated as / converted into a Section 8 company.
  • OPC may be converted to private / public companies as per Rules.

### 10. Other Restrictions

  • No minor shall become member/nominee of OPC or hold share with beneficial interest.
  • OPC cannot carry out NBFC investment activities including investment in securities of any body corporate.

### 11. Relaxations Available to OPC (& Small Companies)

SectionRelaxation
2(40)Not required to prepare CFS (Consolidated FS)
92Annual Return can be signed by Director (CS not mandatory)
96AGMs not applicable to OPCs
98, 100-111Provisions on calling/holding meetings — not applicable
134FS and Board's Report can be signed by 1 director
137FS can be filed within 6 months from close of FY (instead of 30 days)
143(3)Reporting on adequacy of IFC — not applicable to OPCs
173Only 1 Board Meeting in each half of calendar year; gap between 2 BMs ≥ 90 days

Worked example

### Example 1

Example — Nominee becoming member: Mr. A is the sole member of ABC (OPC) Pvt Ltd; Mr. B is the nominee. Mr. A dies on 1 April. Mr. B becomes the member on 1 April. — Mr. B must (i) appoint a new nominee by 16 April (15 days), and (ii) the OPC must file Form INC-4 with the RoC by 1 May (30 days).

### Example 2

Example — Conflict of OPC memberships: Mr. X is the sole member of P (OPC) Pvt Ltd. He is also the nominee of Q (OPC) Pvt Ltd. The sole member of Q dies and X becomes member of Q as well. — Mr. X now holds membership in 2 OPCs simultaneously. He must resolve this conflict within 180 days (e.g., withdraw from one OPC or transfer it).

### Example 3

Example — AGM holding: ZYX (OPC) Pvt Ltd has not held any AGM for FY 2025-26. Is it in violation of Section 96? — NO. Section 96 is not applicable to OPCs; AGM is not required.

⚠️ Common exam mistakes

  • Treating a foreign citizen / foreign national as eligible to form an OPC — only Indian citizens (whether resident or non-resident) qualify.
  • Forgetting the 120-day residency threshold for 'resident in India' — it is 120 days, not 182 days as in Income Tax Act.
  • Believing OPC must always be a Private Company by guarantee — name suffix is '(OPC) Private Limited', and OPC cannot be a Section 8 company.
  • Confusing Form INC-4 filing window (30 days) with the nominee appointment window (15 days).
  • Considering change/replacement of nominee as an alteration of MoA — it is expressly NOT.
  • Assuming OPC can carry on NBFC investment activity — this is expressly prohibited.
Bare-Act text Section 2(62) read with Section 3 and Companies (Incorporation) Rules · Companies Act, 2013 · click to expand
One Person Company [Sec 2(62)] means a company which has only one person as a member.
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