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WHO IS ELIGIBLE TO BECOME MEMBER OF OPC IN INDIA?

WHO IS ELIGIBLE TO BECOME MEMBER OF OPC IN INDIA ?

ELIGIBILITY CRITERIA

Natural Person

The member of an OPC must be a natural person, which means a living, breathing human being. Corporations, partnerships, and other legal entities are not eligible to be members of an OPC.

Indian Citizen

The member of an OPC must be an Indian citizen. Foreign nationals are not eligible to be members of an OPC.

Resident of India

The member of an OPC must be a resident of India. This means that the member must have been physically present in India for at least 182 days during the immediately preceding financial year.

Sound Mind and Body

The member of an OPC must be of sound mind and body. This means that the member must be able to understand the nature and consequences of forming an OPC.

Not Disqualified

The member of an OPC must not be disqualified from being a member of a company under the Companies Act, 2013. For example, a person who has been convicted of a serious crime is disqualified from being

ADDITIONAL ELIGIBILITY CRITERIA

In addition to the above eligibility criteria, there are some additional eligibility criteria that may apply to certain categories of individuals. For example, the following individuals may not be eligible to become members of an OPC:

  • MinorsIndividuals who are under the age of 18 are not eligible to become members of an OPC.
  • Undischarged insolvents: Individuals who have been declared insolvent and have not been discharged from their debts are not eligible to become members of an OPC.
  • Prohibited persons: Individuals who have been prohibited from being a member of a company under any law are not eligible to become members of an OPC.

DOCUMENTS REQUIRED TO FORM AN OPC

  • Form INC-1: This is the application form for incorporating an OPC.
  • Memorandum of Association: This is the document that sets out the OPC’s constitution.
  • Articles of Association: This is the document that sets out the OPC’s operating rules.
  • Nominee declaration: This is the document that appoints a nominee to act as the member in case the member dies or becomes incapacitated.
  • Director identification number (DIN): This is a unique identification number that is required for all directors of companies in India.
  • Proof of identity: This could be a passport, driver’s license, or voter ID card.
  • Proof of residence: This could be a utility bill, bank statement, or rent agreement.

OPC REGISTRATION PROCESS

  1. Apply for DIN: The first step is to apply for a DIN from the Ministry of Corporate Affairs (MCA). You can apply for a DIN online or by submitting a hard copy application form to the MCA.
  2. Draft MOA and AOA: The next step is to draft the OPC’s Memorandum of Association (MOA) and Articles of Association (AOA). The MOA is the OPC’s constitution, and it sets out the OPC’s name, objectives, and capital structure. The AOA is the OPC’s operating rules, and it sets out the OPC’s management structure, decision-making process, and other operational matters.
  3. Appoint a nominee: The OPC must appoint a nominee who will act as the member in case the member dies or becomes incapacitated. The nominee must be a natural person who is resident in India.
  4. File Form INC-1: The next step is to file Form INC-1 with the RoC. Form INC-1 is the application form for incorporating an OPC. You can file Form INC-1 online or by submitting a hard copy application form to the RoC.
  5. Pay the registration fee: The RoC will charge a registration fee for incorporating an OPC. The registration fee is currently INR 1,000.
  6. Obtain a certificate of incorporation: Once the RoC has processed your application, it will issue a certificate of incorporation for your OPC. The certificate of incorporation is the

Some Of The Advantages And Disadvantages of Forming An One Person Company (OPC) In India:

Advantages

  • Simplified compliance requirements: OPCs are subject to fewer compliance requirements than other types of companies. This can save time and money for businesses.
  • Flexibility: OPCs have more flexibility than other types of companies in terms of their management structure and operations. This can be beneficial for businesses that want to operate in a more informal and flexible manner.
  • Tax benefits: OPCs may be eligible for certain tax benefits, such as the presumptive taxation scheme. This can help businesses to save money on taxes.
  • Easy to set up: The process of setting up an OPC is relatively simple and straightforward. This can save businesses time and money.
  • Good for small businesses: OPCs are a good option for small businesses that do not need to raise a large amount of capital or that do not need to have a board of directors.

Disadvantages

  • Limited funding options: OPCs are limited in their ability to raise capital. This is because they cannot offer shares to the public.
  • No board of directors: OPCs do not have a board of directors. This means that the sole member of the company has complete control over the company’s management. This can be a disadvantage if the member is not experienced in managing a business.
  • No separate legal entity: An OPC is not a separate legal entity from its member. This means that the member is personally liable for the debts and liabilities of the company.
  • Nominee requirement: OPCs are required to appoint a nominee who will act as the member in case the member dies or becomes incapacitated. This can be an administrative burden for the member.

Annual compliance requirements: OPCs are subject to certain annual compliance requirements, such as filing an annual return and holding board meetings. These requirements can be time-consuming and expensive

Some Of the Key Points on Who Is Eligible to Become a Member Of An One Person Company (OPC) In India:

  • Must be a natural person: The member of an OPC must be a natural person, which means a living, breathing human being. Corporations, partnerships, and other legal are not eligible to be members of an OPC.
  • Must be an Indian citizen: The member of an OPC must be an Indian citizen. Foreign nationals are not eligible to be members of an OPC.
  • Must be a resident of India: The member of an OPC must be a resident of India. This means that the member must have been physically present in India for at least 182 days during the immediately preceding financial year.
  • Must be of sound mind and body: The member of an OPC must be of sound mind and body. This means that the member must be able to understand the nature and consequences of forming an OPC.
  • Must not be disqualified: The member of an OPC must not be disqualified from being a member of a company under the Companies Act, 2013. For example, a person who has been convicted of a serious crime is disqualified from being a member of a company.