(1)

Only a natural person who is an Indian citizen and resident in India-

(a) shall be eligible to incorporate a One Person Company;

(b) shall be a nominee for the sole member of a One Person Company.

(2)

[ 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.] [Substituted by Notification No. G.S.R. 743(E), dated 27.7.2016 (w.e.f. 31.3.2014)]

(3)

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 sub rule (2) within a period of one hundred and eighty days.

(4)

No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest.

(5)

Such Company cannot be incorporated or converted into a company under section 8 of the Act.

(6)

Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.

(7)

No such company can convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees.