One Person Company (OPC) is an innovative step towards leveraging extended benefits to individual entrepreneurs seeking benefits of Private limited companies.
A new concept has been introduced in the Company's Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.
AS PER SECTION 2(62) OF COMPANIES ACT 2013 READ WITH RULE 3 OF COMPANIES INCORPORATION RULE, 2014;
One Person Company" means a company which has only one person as a member.
The term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding financial year.
While counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted.
A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.