One Person Company- a mixed bag under the Companies Act, 2013
The Companies Act, 2013 defines ‘One Person Company’ or OPC as a company formed for any lawful purpose with only one person as its member. One person company is a private company with one person subscribing to the Memorandum and complying with the requirements of the legislation in respect of registration. The Act provides that the words ‘One Person Company’ shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved.
The Memorandum of OPC is required to indicate the name of another person, with his prior written consent, who shall, in the event of the subscriber‘s death or his incapacity to contract, become the member of the company. The written consent of such person, who is a nominee of the member, shall also be filed with the Registrar at the time of incorporation along with the Memorandum and Articles. The nominee may withdraw his consent in a manner that as may be prescribed, the new Act also provides the member, the freedom to change the nominee at any time by giving notice in a manner as may be prescribed. The member of OPC is required to inform the company of change, if any, in the details of nominee by indicating it in the Memorandum or otherwise within the time and in such manner as may be prescribed. The company is required to inform the Registrar of any such change. The member who is an individual shall be deemed to be the first director of the company until a director is duly appointed by the member.
Click on the links to read all articles on OPC:
One Person Company - A new concept and its formation by Dr. S Chandrasekaran
One Person Companies: A useful tool of ring-fencing and corporatisation by Ms. Aditi Jhunjhunwala
One Person Company - Analysis of Annual Filing of Documents by Dr. S Chandrasekaran
Board of Directors of One Person Company and maintenance of minutes books by Dr. S Chandrasekaran
For any related query, feel free to contact:
Mr. Ankit Singhiand
Mr. Deepali Mendiratta