Whether One Person Company can be Shareholder in Other Private Ltd Company

Hi,

Whether One Person Company can be Shareholder in Other Private Ltd Company

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Replies (4)
Quick Summary
Yes, a One Person Company (OPC) can indeed be a shareholder in another Private Limited Company. As a distinct legal entity with the capacity to enter contracts and hold property, an OPC functions similarly to any other individual or corporate shareholder. The Companies Act allows for this arrangement, enabling the sole director to facilitate such investments.

Yes, a One Person Company (OPC) can be a shareholder in another Private Limited Company. An OPC is a type of private limited company in India that is owned and managed by a single person. As a shareholder, an OPC can hold shares in other companies, just like any other individual or entity.

Yes it can be.
As per provisions laid down in companies act the sole director can arrange for the same.

Yes, an OPC can be a shareholder in another company. Reasons being -

  • It is a legal entity; 
  • It has the capacity to enter into contracts; and 
  • It has the capacity to hold property.

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