State the relevant provisions of the Companies Act, 2013 and the Rules made thereunder for incorporation of one person company and opine on the following: ABC Private Limited desire to incorporate a one person company an

The relevant provisions of the Companies Act, 2013 (the Act) and the Companies (Incorporation) Rules, 2014 (the Rules) for incorporation of one person company are discussed as under. As per Section 2 (62) of the Act 'one person company' means a company which has only one person as a member. As per Section 3 (1) (c) of the Act a company may be formed for any lawful purpose by one person, where the company to be formed is to be one person company, that is to say a private company. In Rule 3 of the Companies (Incorporation) Rules, 2014 it is provided as under. Only a natural person who is an Indian citizen whether resident in India or otherwise shall be eligible to incorporate a One Person Company; shall be a nominee for the sole member of a One Person Company. Explanation - For the purposes of this rule, the term "resident in India" means a person who has stayed in India for a period of not less than 120 days during the immediately preceding financial year. A natural person shall not be member of more than a one person company at any point of time and the said person shall not be a nominee of more than a one person company. Where a natural person, being member in One Person Company in accordance with this rule becomes a member in another such company by virtue of his being a nominee in that One Person Company, such person shall meet the eligibility criteria specified in Rule 3 (2) above within a period of 180 days. No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest. In view of the above provisions of the Act and the Rules it is stated as under. ABC Private Limited cannot incorporate a one person company and become member of the company. - Rule 3(1)