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    Can a one person Company (OPC) invest / take stake in another company?

    Posted By : CS Shiriti / Published on : 02-Dec-2017 01:03 PM / View : 10153 / Comment : 6

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    We' re Incorporating a Private Limited and having one query regarding the investment by OPC as subscriber : An OPC is sub-category of Private Limited Company and by virtue of its status, can OPC invest in stake of Private company and own the same ?
    Read more on : company another stake invest person take

    • Alike any other company, an OPC can also invest in another company. An OPC is sub-category of Private Limited Company and by virtue of its status, it can invest in stake of another company and own the same. However, this object shall be inserted into the object clause of the MOA.

      02-12-2017 / 07:47:50 AM
      • Dear Shobhit thank you for your prompt reply !
        As we are looking for more clarification with rule, as mentioned under Companies (Incorporation) Rules,2014 that:

        3(6) saying: 

        Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.

        Therefore, as per my understanding OPC can not be a Subscriber/Member in another Company .

        02-12-2017 / 07:57:41 AM
    • MADAM


      02-12-2017 / 09:10:17 AM
    • if opc have sufficient funds in its own account the no issue.



      04-12-2017 / 05:36:57 AM
    • The OPC, as a subscriber, among us will hold shares in the Private Limited company, and this shareholding will determine the extent of ownership in the Private Limited company.

      11-10-2023 / 04:45:34 AM
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