- Only natural person to be a member of OPC
In OPC, only a natural person can be a member, director, or nominee. It means that, unlike a private limited company, OPC cannot have the Company as a shareholder or investor. An NRI can also become a member and nominee in OPC w.e.f. 01.04.2021
A natural person shall not be a member of more than one OPC and no person shall be allowed to be a nominee of more than one OPC at any point in time. This is to safeguard the intention behind this concept for small entrepreneurs.
- The naming of One Person Company (OPC)
The words “OPC” shall be mentioned in brackets and shall be added to the suffix Private Limited along with the name of such company, wherever its name is printed, affixed, or engraved. For E.g., ABCD Services (OPC) Private Limited.
- No Limitation of Turnover and Paid-up capital for Conversion
Earlier there was a threshold limit of paid-up capital (Rs. 50 lacks) and Turnover (Rs. 2 crores) beyond which OPCs were required to compulsorily convert into Private Limited Companies. But w.e.f. 01.04.2021, such limitation has been removed and now OPC can continue to run the business without any restriction of compulsory conversion.
- Conversion of One Person Company (OPC) into other forms of Company
A One Person Company (OPC) can be converted into a Private Limited or Public Ltd Company, after increasing the minimum number of members and directors. However, OPC cannot be converted into a Section 8 Company.
- Prohibition to carrying out Non-Banking Financial Investment activities
A One Person Company (OPC) cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.