As per companies act 2013, in India we can form three type of companies i.e. private limited, public limited and One Person Company or OPC. Section 3 prescribes minimum number of persons required to form a public, private or OPC in India.
As per section 3 of Companies act 2013, a company in India can be formed for any lawful purpose by;
- seven or more persons where the company to be formed is to be a public company, or
- Two or more person, where the company to be formed is to be a private company, or
- One person, where the company to be formed is to be OPC that is to say, a private company,
To incorporate a company, above persons are required to subscribe their names or his name to a memorandum of association
In case of a OPC, the owner shall indicate the name of one other person with his prior written consent in the prescribed form and file it with the registrar of companies at the time of incorporation of One Person Company along with the MOA and AOA.
In the event of death or incapacity to contract, the other person becomes member of the company.
To summaries, minimum persons required to form a public, private limited company and One person Company is 7, 2 and 1 respectively. One more additional person as nominee to the shareholder is required for a One Person Company at the time of registration.
Before forming a company based on your requirements, you must make sure that above criteria are fulfilled.
Also Read: Advantages and Disadvantages of One Person Company or OPC
As discussed in your previous articles, one can always convert a OPC to private or public company after fulfilling specific criteria as mentioned in Companies Act 2013. Similarly a private limited company can be converted to OPC.
While converting, you are required to fulfill above minimum requirements i.e. two person in case of private, seven person in case of public company and one person in case of OPC.
