Can a Minor Become a Nominee in One Person Company?

Introduction 

A Nominee is an essential part for the Incorporation of One Person Company. It is mandatory for directors/shareholders to appoint a nominee in OPC. But the question arises who can become a nominee in one person company and what is its procedure? In this blog, you’ll get the complete details related to the eligibility criteria of a nominee in an OPC, how one can become a nominee in OPC & its benefits. 

Minor as a Nominee in One Person Company 

For the incorporation of One Person Company a nominee is required whose name can be recorded in the Memorandum of Association (MoA). There is a myth or confusion among people that they can appoint their child as a nominee however, the fact is a nominee must be 18 years old either their child or any other. 

In simple words to clear the confusion - Can a minor become a nominee in One Person Company? No, a minor can not become a nominee in One Person Company, he/she must be 18 years old or above. However, there are some other eligibility criteria other than that which should be followed. 

Nominee in One Person Company 

To become a nominee in One Person Company there is some eligibility criteria that should be followed and its is as given below: 

• Indian Citizen: To become a Nominee in One Person Company it is important the individual must be an Indian Citizen and no foreign citizen is allowed to become a nominee in One Person Company. 

• Indian Resident: Any Indian Resident can become a nominee (stayed in India for at least 120 days in the last financial year) in One Person Company in India. 

• Must be 18 years old: To become a nominee in One Person Company in India, the nominee must be at least 18 years old and no minor can become a Nominee in One Person Company. 

• Consent: To become a nominee in OPC, a written consent must be provided to the sole director and shareholders of the OPC. 

• Mutual Agreement: To become a nominee in OPC, nominee must agree with the OPC’s Sole Director and Shareholder. 

NOTE:In order to become a nominee in One Person Company in India, all these eligibility criteria should be met. 

How to become a Nominee in One Person Company? 

To become a Nominee in One Person Company following are the steps that should be followed: 

Step 01: File the Nominee Consent Form: To become a nominee in One Person Company, the first step is to file the nominee consent form. One can use e-form INC-3 for the nominee consent form.

Step 02: Must Meet the Eligibility: Next, you need to assure the nominee must qualify the eligibility criteriasuch as Indian Citizen, Indian Resident, Age Requirement, etc. 

Step 03: Sign the Agreement: Once you meet the eligibility criteria, create an agreement with the Director/Shareholders of the OPC. This agreement includes your role and responsibilities as a nominee. 

Step 04: Intimation to the Registrar: Once you agree with the sole director and shareholder, submit all the documents with the Registrar of Companies (RoC) including the consent form, agreement, etc, and you’re all done with the nominee appointment. 

Benefits of Having a Nominee in OPC 

Having a Nominee for your One Person Company can offer you several benefits, let’s discuss these benefits in detail: 

• Business Continuity: A nominee makes sure that the business can be continued even in the absence of the director or shareholders. It helps in maintaining the business continuity and operations.

• Flexibility: A Nominee can be changed anytime by the sole members easily which make it easy to adapt the changing preferences. 

• Confidentiality: A Nominee identity can be kept confidential which makes it easy for the individual to maintain his privacy while operating the business.

Conclusion 

Becoming a nominee in one person company can offer you multiple benefits including flexibility, business continuity, confidentiality, etc. To appoint a nominee certain documents need to be obtained including INC-3 Form (consent), agreement, etc. However, there is an eligibility criteria that should be followed before applying for the procedure to become a nominee in OPC. This eligibility includes Nominee must be an India Citizen or Indian Resident and must be at least 18 years old. Thus, a minor can not become a nominee in One Person Company. 

Frequently Asked Questions (FAQs) 

• Can a Minor Become a Nominee in One Person Company? 

No, a minor can not become a nominee in One Person Company. To become a nominee at least 18 years old is required. 

• Can I change a nominee in OPC?

Yes, you can change a nominee in One Person Company by using INC-3 Form. 

• What is the role of a Nominee in OPC? 

A nominee is a person or firm whose name is titled on securities or other property to facilitate certain transactions or transfers while leaving the original customer as the actual or legal owner.

• Can a person become a nominee in more than one OPC? 

No, as per the Companies Act, 2013, a person can not become a nominee in more than one OPC.