Rajput Jain And Associates

Rajput Jain & Associates

Chartered Accountants

An ISO 9001:2008 Certified Firm

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Faq's on One Person Company (Opc) Formation

Faq's on One Person Company (Opc) Formation

The steps of incorporate OPC are as follows:

  • Name reservation: In order to check the name availability, INC- 1 from needs to be filed.
  • Incorporation of OPC: Form INC- 2 needs to be filed after the name approval within 60 days of the filing of INC- 1
  • DIR- 12 (linked with INC-2) needs to be filed. However, in case the promoter is the sole director of the OPC, the DIR-12 can be avoided.
  • In case the correspondence and the registered office address is not the same, form INC- 22 needs to be filed within 30 days once the INC- 2 form is registered.

The shift of the OPC to the private or public form of business is required to be done in case the total paid up share capital exceeds fifty lakhs rupees or the annual turnover exceeds the limit of two crore rupees.

The intimidation to the ROC needs to be done in form INC- 5 about the exceeded threshold limited and the required change of form of business from OPC to private or public limited.

The form INC- 5 needs to be filed within 60 days or 2 months of the exceeding threshold limit.

  • INC- 6 is to be filed by the OPC for the conversion into private or public limited company.
  • This form also needs to be filed even by the private company for the conversion to an OPC company. However, the total paid up share capital must not exceed fifty lakh rupees and the annual turnover must not be beyond 2 crore rupees at the time of conversion. One member to be appointed along with a nominee to act as a member in case of death or incapacity of the member at the time of conversion.

INC- 6 is to be filed within 30 days in case of voluntary conversion and within 6 months for the mandatory conversion.

  • A person who is an Indian citizen and resident of India is only eligible to act as a member and a nominee in an OPC.
  • However, the term “resident in India” states that a person who has stayed in India for a period of 182 days and more during the preceding one financial year.

No, a person is eligible to be a member in just one OPC.

  • In such a case, the member shall meet the eligibility criteria of being a member in one hundred and eighty days, that is, he/she shall withdraw the membership from either one of the OPC as a person is allowed to be a member in just one OPC.
  • In case of withdrawal of consent by the nominee or for the intimation of the change in nominee by a member, which form needs to be filed?
  • In such a case where the consent is withdrawn by the nominee or there is an intimation for the change of nominee, form INC- 4 is required to be filed.