The OPC Can have an average turnover of Rs. 2 Crores for three years if the turnover exceeds the limit then the same need to mandatory convert as a normal company.
4. Who can be a Nominee?
Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.
5. Who cannot form an OPC?
A Minor, Foreign citizen, Indian, Non-resident, a person incapacitate to contract are restricted from Forming a One Person Company.
6. Can Foreign Direct Investment be done in OPC?
No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.
7. Is there any mandatory condition when the OPC has to change itself into Private or Public company?
If the paid-up share capital of an OPC exceeds by 50 Lakh rupees or if the annual turnover of the OPC exceeds by 2 Crore Rupees in relevant period then the OPC has to convert itself into Private Limited Company or Public Limited Company mandatory.
8. What if a person becomes the member or nominee of two or more OPC’s?
If a person becomes member or nominee of 2 or more than 2 OPC’s then he has to withdraw his membership from the OPC within 182 days.