Eligibility to be a Member of a One Person Company (OPC) in India
A One Person Company (OPC) is a unique business structure in India that allows a single entrepreneur to operate a company with limited liability. However, not everyone can become a member of an OPC.
Who is Eligible to be a Member of an OPC?
As per Rule 3 of the Companies (Incorporation) Rules, 2014, the following criteria must be met:
✅ Only a Natural Person – The member must be an individual, meaning that corporate entities, LLPs, or other organizations cannot be OPC members.
✅ Indian Citizen – The individual must be a citizen of India, whether residing in India or abroad.
✅ No Age Restrictions – There is no specific minimum or maximum age limit mentioned, but generally, the member must be competent to enter into a contract.
Can an NRI Become a Member of an OPC?
Yes! NRIs (Non-Resident Indians) are now eligible to be OPC members after the amendment in 2021. This means an Indian citizen, whether residing in India or abroad, can form and operate an OPC.
Additional Conditions for OPC Membership
- A person cannot incorporate more than one OPC or become a nominee in more than one OPC at the same time.
- The nominee appointed by the sole member must also meet the same eligibility criteria.
Conclusion
The OPC structure is ideal for solopreneurs, freelancers, consultants, and small business owners looking to operate with limited liability protection. With the eligibility rules streamlined, even NRIs can take advantage of this structure to start a business in India.
Looking to register an OPC? Ensure compliance with MCA rules and get professional assistance to make the process hassle-free.
