Whether the Authorized Signatory of Foreign Company can be the same as its Nominee?
What is difference between Liquidation and Winding up?
If shares are sold after the ex-date/record date, would eligibility for the rights issue still apply?
Can the services of Payment Aggregators (PA) be used for loan disbursals and repayments?
Can subsidiary company hold shares in its holding company?
What is the difference between Compounding and Adjudication?
Can Peer Review be done by proprietor / partner of the Practice Unit peer reviewed by the Reviewer?
Does getting empanelled as a Reviewer with Institute ensures the allotment of Peer Review work?
Compliance Calendar LLP is Recognised as Startup by DIPP Under Ministry of Commerce & Industry, Government of India
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.