Nature of Shareholding in an OPC An OPC has only one member who holds 100% of the company’s shares. The sole member is both the owner and shareholder of the company. The share capital is not divided among multiple shareholders as in a private limited company. Since...

Nominee Requirement at Incorporation Every OPC is legally required to appoint a nominee during incorporation. The nominee must be a natural person, an Indian citizen, and a resident in India. Consent of the nominee is obtained using Form INC-3, which is submitted to...

Eligibility Criteria The OPC must have completed two years from the date of incorporation for voluntary conversion. Mandatory conversion is required if: Paid-up share capital exceeds ₹50 lakh, or Annual turnover exceeds ₹2 crore for three consecutive financial years....

Types of Conversion Voluntary Conversion: An OPC can voluntarily convert into a private limited company after two years from the date of incorporation. Mandatory Conversion: If the paid-up share capital exceeds ₹50 lakh or the annual turnover exceeds ₹2 crore,...

Sole Membership Requirement An OPC is legally required to have only one member at any given time. This individual holds 100% of the shares and has complete control over the company. The concept of OPC is designed to allow a single entrepreneur to operate a private...

Legal Provision The Companies Act, 2013 permits an OPC to appoint more than one director. Although only one member is allowed, there is no restriction on the number of directors (within limits). An OPC must have at least one director, who may also be the sole member....

Ownership and Capital Contribution The sole member is the owner and shareholder of the OPC. They contribute the entire share capital required to establish and run the company. Their liability is limited to the unpaid amount on their shares, offering personal asset...

Legal Status and Capacity An OPC is recognized as a separate legal entity under the Companies Act, 2013. It has the legal capacity to own assets, enter into contracts, and invest in shares of other companies. Being a private limited company (with a single member), an...

Preparation of Key Information The sole promoter must decide on the company’s proposed name, business activity, and registered office location. Identification details of the member, nominee, and proposed director must be ready, along with their consent. Required...

Definition of Resident Director A resident director is a director who stays in India for a specified minimum number of days in a financial year. According to the Companies Act, 2013, a resident director must have stayed in India for at least 120 days during the...