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Microlesson · 5-min read

OPC – Nominee Rules and Benefits

# One Person Company (OPC) – Nominee Provisions and Benefits

## Why nominees matter in an OPC

An OPC has a single member. If that member dies or becomes incapacitated, the company would have no member to continue operations. The nominee mechanism solves this by pre-identifying who steps into the member's shoes.

## 1. Withdrawal of Consent by Nominee

  • A nominee may withdraw consent at any time.
  • On withdrawal, the nominee must notify both the sole member and the OPC in writing.
  • Within 15 days, the sole member must:
  • Nominate a new person, and
  • Inform the company in writing along with the new nominee's written consent in Form INC-4.

## 2. Change of Nominee (Voluntary Replacement)

  • The member may replace the nominee at any time by notice to the company.
  • The new nominee must give prior written consent.
  • The company must notify the ROC.

## 3. Filing with ROC (Sec. 3 read with Rules)

The company must file notice of any change in nominee within 30 days in any of these cases:

EventTrigger
Nominee becomes a memberOn death/incapacity of sole member
Withdrawal of consentNominee no longer willing
ReplacementMember voluntarily changes nominee

File Form INC-4 with the prescribed fee.

## 4. Privileges/Benefits available to an OPC

BenefitSignificance
No Cash Flow Statement required in financial statementsReduced compliance burden
Annual Return can be signed by a Director (no CS needed)Cost savings
Only one Board Meeting per half yearLower governance burden (vs. 4 per year for others)
File financial statements within 180 days of FY endExtended timeline
Change in Nominee is NOT deemed alteration of MOANo special resolution / ROC alteration filing needed

## Pedagogical anchor – why these reliefs exist

Since an OPC has effectively one stakeholder (the sole member), provisions designed for protecting multiple shareholders (like AGMs and CFS) are relaxed.

Worked example

### Example 1

Q. Mr. A is the sole member of XYZ (OPC) Pvt. Ltd. Mr. B is the nominee. On 1st May, Mr. B writes to Mr. A withdrawing his consent. By when must a new nominee be appointed, and what must be filed with the ROC?

A. Mr. A must nominate a new person within 15 days (by 16th May) and inform the company in writing with the new nominee's consent in Form INC-4. The company must file the change of nominee with the ROC within 30 days in Form INC-4 with applicable fees.

### Example 2

Q. OPC 'Sunrise' wishes to know whether changing its nominee triggers an MOA alteration under Sec. 13.

A. No. Change in nominee is not deemed to be an alteration of MOA. The company only needs to file Form INC-4 within 30 days; no special resolution or Sec. 13 procedure is required.

⚠️ Common exam mistakes

  • Confusing the 15-day timeline (member to appoint new nominee) with the 30-day timeline (company to file with ROC).
  • Believing change of nominee requires a special resolution and Sec. 13 procedure — it does not, as it is not deemed an alteration of MOA.
  • Forgetting that the new nominee must give prior written consent in Form INC-4.
  • Stating OPC needs 4 board meetings annually — only one per half year is required.
  • Stating OPC must file financial statements within 30 days of AGM — OPC has 180 days from FY end because it has no AGM.
Bare-Act text Section 3(1) · Companies Act, 2013 · click to expand
Sec. 3(1): A company may be formed for any lawful purpose by — (c) one person, where the company to be formed is to be One Person Company that is to say, a private company, by subscribing their names or his name to a memorandum and complying with the requirements of this Act in respect of registration. Proviso: The memorandum of One Person Company shall indicate the name of the other person, with his prior written consent in the prescribed form, who shall, in the event of the subscriber's death or his incapacity to contract, become the member of the company... such other person may withdraw his consent in such manner as may be prescribed... the member of OPC may at any time change the name of such other person by giving notice... and the company shall intimate the Registrar any such change within such time and in such manner as may be prescribed.
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