Rohan, a person resident in India, has been running a hotel as a sole proprietor. He now wants to convert his business into a 'one person company' (OPC) as permissible under the provisions of the Companies Act, 2013 and

As per Rule 3 (1) of the Companies (Incorporation) Rules, 2014, only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company. Accordingly, Rohan may incorporate a one person company (OPC) and the OPC so incorporated may take over/purchase his business of hotel. Rule 3 of the Companies (Incorporation) Rules 2014 provides that only a natural person who is an Indian citizen and resident in India:- shall be eligible to incorporate a One Person Company; shall be a nominee for the sole member of a One Person Company. A person can incorporate only one 'One Person Company'. The subscriber to the Memorandum of a One Person Company shall nominate a person, after obtaining prior written consent of such person, who shall, in the event of the subscriber's death or his incapacity to contract, become the member of that One Person Company. The name of the person nominated shall be mentioned in the memorandum of One Person Company and such nomination in Form INC-2 along with consent of such nominee obtained in Form INC-3 and fee as provided in the Companies (Registration offices and fees) Rules, 2014 shall be filed with the Registrar at the time of incorporation of the company along with its memorandum and articles. In case Rohan is a Non-Resident Indian, he cannot incorporate OPC as Rule 3 (1) requires that only a natural person who is an Indian citizen and resident in India One Person Company shall be eligible to incorporate a One Person Company. Similarly a partnership firm cannot form OPC.