One Person Company, Nominee in an OPC, INC 3 Form, Nomination Process, EbizFiling

What Is The Role of a Nominee In An OPC?


One Person Company (OPC) is a unique form of business structure introduced under the Companies Act 2013 in India. It allows entrepreneurs to establish a company with a single member. To comply with the legal requirements, every OPC must have a nominee. In this article, we will delve into the role of a nominee in an OPC, their responsibilities, and the significance of the INC 3 form in the nomination process.

What is a One-Person Company?

One-person companies (OPCs) are a form of business structure that allows a single individual to own and operate a firm. In India, one-person companies (OPCs) are governed by the Companies Act, 2013. An OPC is a combination of a single proprietorship and a business. Similar to a Private Limited Company, it offers the advantages of limited liability and a separate legal entity while being simpler to run and maintain than a sole proprietorship.

What is the Role of a Nominee in OPC?

A nominee plays an important role in the functioning and continuity of an OPC. Here are the key aspects of their role:

  1. Planning for Succession: The OPC’s only member appoints a nominee to assume control of the business in the event of the member’s death or incapacity. This guarantees the smooth continuation of corporate operations and safeguards stakeholders’ interests.

  1. Legal Representative: The nominee serves as the OPC’s legal representative and completes the required paperwork and compliance on behalf of the business. They are accountable for doing clerical duties, signing legal paperwork, and, if necessary, representing the court business.

  1. Rights and Liabilities: The nominee of an OPC has various rights and obligations. They have the option to resign from their role as a nominee by notifying the member in writing. The nominee is required to follow the member’s instructions in the absence of any such notice.

  1. Protection of Interests: In the event of unanticipated events, the nominee acts as a safeguard to protect the interests of the stakeholders, including creditors, shareholders, and employees. Their presence guarantees a smooth transition and efficient administration of the business’s activities.

What is the Significance of the INC-3 Form?

To formalize the nomination process and establish the role of the nominee, the Companies Act 2013 requires the filing of the INC-3 form. Here’s why this form is essential:

  1. Nominee Appointment: During the incorporation procedure of an OPC, the nominee is appointed and given the appropriate information using the INC 3 form. It contains facts on the nominee’s approval to serve as a nominee, their identity, and their relationship to the sole member.

  1. Verification and Authentication: The INC 3 form verifies the nominee’s identification and relationship to the member to assure the accuracy of the nominee’s information. It serves as a formal declaration of the nominee’s position and their consent to take on the duties.

  1. Compliance Requirement: Filing the INC 3 form is a mandatory compliance requirement for One-Person Companies in India under the Companies Act 2013. It ensures transparency, accountability, and adherence to the legal framework governing OPCs.

What is the Nominee Consent Form?

A nominee consent form is crucial to establishing a One-Person Company in India. This form is mandatory for submission by the individual designated as the nominee for the OPC. It serves as their confirmation of consent to assume the role of the company’s nominee. The nominee consent form for an OPC typically encompasses the following particulars:

  • Nominee’s name and address
  • OPC details, including its name and registered address
  • Affirmation of the nominee’s consent

The nominee consent form must be submitted along with the OPC’s incorporation documents, including the INC-3 form. The INC-3 form is a declaration by the sole promoter or member of the OPC stating that they have appointed a nominee in the event of their death or incapacity.


The role of a nominee in an OPC is of utmost importance for the smooth functioning, continuity, and protection of stakeholders’ interests. They act as a legal representative, ensuring compliance with legal formalities and stepping in to manage the company in case of unforeseen events. The INC-3 form plays a crucial role in formalizing the nomination process and verifying the nominee’s details. By understanding the role and significance of the nominee in an OPC, entrepreneurs can establish and manage their businesses with confidence, knowing that there is a designated individual to uphold the company’s interests and ensure its continuity.

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Author: dharmik-joshi

Dharmik Joshi is a student currently pursuing Business Management and Administration. He is passionate about presenting his thoughts in writing. Alongside his academic pursuits, Dharmik is actively involved in various extracurricular activities. He enjoys communicating with people and sharing things with others. He is more focused on the learning process and wants to gain more knowledge.

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