Mr. R is an Indian citizen, and his stay in India during the immediately preceding financial year is for 130 days. He appoints Mr. S, a foreign citizen, as his nominee, who has stayed in India for 125 days during the immediately preceding financial year. Is Mr. R eligible to be incorporated as a One-Person Company (OPC)? If yes, can he give the name of Mr. S in the Memorandum of Association as his nominee? Justify your answers with relevant provisions of the Companies Act, 2013.\nOR\nMr. A is an Indian citizen and his stay in India during immediately preceding financial year is for 115 days. He appoints Mr. B as his nominee who is a foreign citizen but has stayed in India for 130 days during immediately preceding financial year.\ni) Is Mr. A eligible to be incorporated as a One Person Company (OPC). If yes, can he give the name of Mr. B in the memorandum of Association as his nominee to become the member after Mr. A’s incapacity to become a member.\nii) If Mr. A has contravened any of the provisions of the Act, what are the consequences?

As per the provisions of the Companies Act, 2013, Only a natural person who is an Indian citizen whether resident in India or otherwise-\n- Shall be eligible to incorporate an OPC\n- Shall be a nominee for the sole member.\nIn the given case, Mr. R is an Indian citizen, hence the requirement of 120 days is not applicable. Mr. R is eligible to incorporate an OPC.\nAlso, even though Mr. S’s name is mentioned in the Memorandum of Association as nominee and his stay in India during the immediately preceding financial year is more than 120 days, he is a foreign citizen and not an Indian citizen. Hence, S’s name cannot be given as nominee in the memorandum.\nOR\ni)In the given case, though Mr. A is an Indian citizen, his stay in India during the immediately preceding previous year is only 115 days which is below the requirement of 120 days, still he can incorporate an OPC.\nAlso, even though Mr. B’s name is mentioned in the memorandum of Association as nominee and his stay in India during the immediately preceding financial year is more than 120 days, he is a foreign citizen and not an Indian citizen. Hence B’s name cannot be given as nominee in the memorandum.\nii) If Mr. A contravenes any provision, He shall be punishable with fine which may extent to ten thousand rupees and with a further fine which may extent to One thousand rupees every day after the first during which such contravention occurs.