What is a One Person Company?
One Person Company is a company that is established with only one member unlike, the traditional manner of having two people.The concept of One Person Company was introduced in India through the Companies Act 2013 with a vision of escalation of entrepreneurs in the market place and making their contribution to the economy widely effective.
Nominee in a One Person Company :-
While incorporating a One Person Company, the sole member of the company has to provide a name to be the nominee of the company in the Companies MOA, who can undertake the working of the company, in case of death or incapacitation of the former. Also there should be written consent of the nominee filed along with the MOA and AOA of the company.
Consensual withdrawal :-
In any given point of time, a nominee can withdraw his/her consent, in this case the sole member is required to submit the notice of withdrawal of consent in form INC-3 and along with that the sole member has nominate a new nominee within 15 days and has to submit a notice in form INC-4.
Replacement of Nominee :-
The sole member of One Person Company has the rights to change the nominee of the company for whatsoever reason. In order to change the nominee the company has to file a written application in form INC-3 and company should file the notice of change with the consent of the nominee and the applicable fees within 30 days of receiving the intimation of change.
Appointing the Nominee :-
If there is incapacitation and death of the sole member then, the nominee of the OPC will take over the workings and he/she should appoint a new nominee within 15 days as a replacement.
In case if the sole member doesn't compliant with specific regulations, then there would be a penalty of 10,000/- that needs to be incurred by the sole member, further with every default, the penalty will increase by a fine of 1,000/-