According to Section 2(62) “One person company means a company which has only one natural person as a member.” Section 3 of the Companies Act, 2013 classifies an OPC as a private company for all the legal purposes with only one member. Therefore, all the provisions related to the private company under the Companies Act, 2013 are applicable to an OPC unless otherwise expressly excluded in the Act.
The words ‘One Company’ should be mentioned below the name of the company, wherever the name is affixed, used or engraved. salient Features of OPC (6) It has only one member (n) It has at least one director. The maximum number of directors is fifteen. (ii It is registered as a private company (iv) An OPC can be formed under any of the following categories: a company limited by guarantee company limited by shares, or . an unlimited company (o) An OPC limited by shares is required to comply with the following requirements. it shall have a minimum paid up capital of 1 lakh, it shall restrict the right to transfer its shares, and. prohibit any invitation to the public to subscribe for the securities of the company has, (vi) The member of an OPC has to nominate a nominee with the nominee’s written consent and file it with the Registrar of Companies. This nominee, in the event of death or in the event of any other incapacity, shall become the member of an OPC. The member of an OPC, at any time, can change the name of the nominee after giving a notice to the Registrar Companies in such manner as may be prescribed. On account of death of the member, the nominee automatically becomes the member of the company. He also becomes liable for all the liabilities of OPC. (vi) Only a natural person who is an Indian citizen and resident in India can incorporate OPC. Same rule applies to the nominee of the sole member. (vii) A person can incorporate only one OPC. (ix) The share capital should not exceed 50 lakhs and the average turnover should not exceed 2 crores. . It is not required to prepare Statement of Cash Flows. The Annual Return can be signed by the company secretary or by the Exemptions enjoyed by an OPC. An OPC enjoys the following exemptions: . It is not required to rotate auditors in accordance with Section 39(2). director of the company if there is no company secretary It is exempt from holding Meetings.