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    One Person Company as a Subsidiary

    Posted By : Juhee Goyal / Published on : 18-Mar-2023 04:57 AM / View : 102 / Comment : 1

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    Hi Professional!

    Can a company form a One Person Company (OPC) as its subsidiary?
    Read more on : subsidiary company person

    • No, as per the Companies Act, 2013, a One Person Company (OPC) cannot be formed as a subsidiary of any company. OPC is a separate legal entity that can only be formed by a single individual, and it cannot have any subsidiary or associate company.

      As per Section 2(87) of the Companies Act, 2013, a subsidiary company means a company in which the holding company controls the composition of the Board of Directors or exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies. Since an OPC can only be owned by a single individual, it cannot meet the definition of a subsidiary company.

      Therefore, a company cannot form an OPC as its subsidiary as it is not permissible under the Companies Act, 2013. However, a company can form a Private Limited Company or a Limited Company as its subsidiary in accordance with the provisions of the Act.

      31-03-2023 / 10:44:38 AM
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