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How OPCS Are Impacted After NRI Investments In India?

OPC are companies owned by an individual or have a single shareholder. These companies got a massive boost after the 2021 annual budget. There are lots of perks given to startups in the OPC Registration Process in terms of business. This year’s budget was mainly focused on creating business opportunities for NRI to operate 0PCs in India to develop the economy.

What is OPC? 

OPC means One Person Company where there is a single owner or shareholder of the company. One-person company registration was introduced in The Companies Act of 2013.

 The individuals (owners) try to create a place in the market for the company single-handedly. The company is owned and managed by only a single individual, unlike mainstream sectors. 0PCs do have some sort of benefits which turns out to be a factor in the economic growth of a nation.

The key features of OPCs:

Some of the key features of 0PCs which made govt. to provide such an opportunity to the NRI for operating them are:

•     They fall under the description of private companies given in the Companies Act of 2013.

•    Whole company is Operated by a single individual unlike other private companies.

•    The Board directors are also minimized (previously 2 directors were must).

•    While registering an OPC the name of the nominee is mentioned, unlike other companies which lessen the chaos in Cfilse of owners sudden demise.

•    No prescribed paid-up capital amount as it is an OPC.

•    Since it falls under the Companies Act, it enjoys some extra perks not available to the other companies.

How do NRIS fit in OPC?

According to the financial Budget 2021, the NRIs are allowed to open an OPC from April onwards. Earlier, there was a clause stating that to open an OPC in India, an NRI must have to stay at least 182 days in India. This condition has also been reduced to 120 days for having easier accessibility and faster growth.

There is a rule that states that if companies turnover exceeds 2 crores it had to be privatized. This has also been slightly modified resulting in the removal of the limitation.

Now One can be an OPC regardless of companies growth and turnover leading to encouragement to more investment and will result in the growth of the Startup.

This industrial growth will ultimately boost up the economy. With this immense growth of industry, there will be a huge spike of registrations in applying for a trademark helping in the study of data of company growth and further employment possibilities.


The inclusion of NRIs to invest in OPC will certainly lead us to an economic boost. The investment will be much higher due to less risk and compliance. Setting up an OPC doesn’t require much time, so it is much easier than others. Ultimately, it will create opportunities for newer startups to grow and gradually increase the GDP revenue.