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OPC One Person Company
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What is the significance of Resident word Here as they have given that whether resident or Otherwise, so whatever is the meaning of resident So why it is given here ?
Answers (3)
Under Section 2(62) of the Companies Act, 2013, an OPC is a company that has only one person as a member. Originally, only a resident Indian citizen could incorporate an OPC. But in 2021, the law was amended to make it more flexible. Before the Amendment: Only a natural person who is a resident in India could incorporate an OPC. "Resident in India" was defined as someone who stayed in India for at least 182 days in the previous financial year. So, Non-Resident Indians (NRIs) were not allowed to form an OPC earlier. After the Amendment (effective from 1 Feb 2021): Now, the law says: "A natural person who is an Indian citizen whether resident in India or otherwise can incorporate an OPC." Meaning of “Resident or Otherwise”: - Resident → Lives in India for ≥ 182 days in the previous financial year. - Otherwise → May be a Non-Resident Indian (NRI). So now, even NRIs can form an OPC. Why is "resident or otherwise" significant? - It expands eligibility. - Encourages NRIs and global Indian entrepreneurs to set up businesses in India as OPCs. - Supports the ease of doing business. Summary: The phrase "whether resident in India or otherwise" is used to explicitly allow NRIs (non-residents) to form an OPC, which was not allowed earlier. It's a significant change aimed at attracting investment and promoting entrepreneurship among Indians living abroad. For exploring India’s vast market and navigating compliances, it’s always advisable to consult a trusted OPC Registration service providing company (e.g. Setindiabiz) in India.
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