February 3, 2021
Summary of the notification issued by MCA on 01/02/2021
MCA eases norms for One Person Company (OPC) incorporated under the Companies Act, 2013 and its Rules with effect from 01/04/2021
Key highlights of the Companies (Incorporation) Second Amendment Rules, 2021 are:
1. Non-resident Indians can also incorporate OPC and the minimum residency period has been brought down to 120 days from 180 days for the Indian Citizens.
2. Automatic cessation of the validity of the OPC upon exceeding paid up capital of fifty lakh rupees and average annual turnover (during the relevant period) of two crore rupees has been dispensed with, which means it can continue to grow and operate as an OPC forever.
3. OPC can convert itself into a Public or Private Company, at any point of time, by altering its memorandum and articles by passing a resolution in accordance with the provisions of the Act to give effect to the conversion and to make necessary changes incidental thereto. Form INC-6 shall be filed with the Registrar in this regard.
This notification is available on our free to use website www.ca2013.com for your quick reference.