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    One Person Company as a Subsidiary

    Posted By : Juhee Goyal / Published on : 18-Mar-2023 04:57 AM / View : 422 / Comment : 3

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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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    • The definition of a subsidiary company involves the concept of control by a holding company over the composition of the board of directors or the share capital of the subsidiary. Since an OPC can only have one individual subway surfers owner, it cannot meet the criteria of being controlled by another company.

      25-03-2024 / 02:29:21 AM
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    • In some places, there may be restrictions on the type of entities that can form OPCs or requirements regarding Drift Hunters the number of directors and shareholders. Additionally, there might be limitations on the number of OPCs that a single person can incorporate or control.

      27-04-2024 / 03:48:11 AM
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