Eligible Person

• Only a natural person is allowed to form an OPC.
  
• The person must be an individual, not a company or legal entity.
  
• The individual must act as the sole member and shareholder.
  
• Artificial persons such as firms, LLPs, or corporate bodies are not eligible.
  
• The same individual can be both a member and a director, if desired.
  

Citizenship and Residency

• The person forming an OPC must be an Indian citizen.
  
• They must be a resident in India, which means staying in India for at least 120 days during the previous financial year.
  
• Non-resident Indians (NRIs) are not eligible to form an OPC under the current rules.
  
• Residency must be satisfied both at the time of incorporation and during the term of ownership.
  
• The nominee must also meet the same citizenship and residency conditions.
  

Nominee Requirement

• It is mandatory to appoint one nominee at the time of incorporation.
  
• The nominee must be a natural person, an Indian citizen, and a resident of India.
  
• The nominee gives written consent using Form INC-3 before incorporation.
  
• The nominee will become a member in case of the insolvency or incapacity of the original member.
  
• The nominee cannot be associated with more than one OPC at a time.
  

Number of OPCs per Individual

• A person can form only one OPC at a time.
  
• The same person cannot incorporate or be a nominee in more than one OPC simultaneously.
  
• This restriction ensures that the OPC framework is used for genuine small-scale operations.
  
• Holding multiple OPCs through different legal capacities is not permitted.
  
• Violation of this rule can lead to legal disqualification and compliance penalties.
  

Business Purpose and Compliance

• The OPC must have a lawful business objective under the Companies Act.
  
• Certain activities are not permitted, such as Non-Banking Financial Investment (NBFI) or investing in securities.
  
• The OPC must comply with basic legal and regulatory standards from incorporation onward.
  
• It must have a registered office in India and meet the prescribed documentation.
  
• The company must remain within limits for turnover and capital to continue as an OPC.