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One Person Company

One Person Company(OPC) is a unique concept introduced through the Companies Act, 2013. In OPC only one person is required, who can be a shareholder as well as the Director. OPC will give all the benefits of a private limited company which means they will have limited liability, legal protection for business, access to credits, bank loans, access to market etc, all in the name of a separate legal entity. But, there is an additional requirement which has to be fulfilled for forming an one person company , a nominee has to appointed during the incorporation of One Person Company. This nominee, will can undertake the management of the company, in case of death of Sole member.

One Person Company enables small business people to run a company with corporate identity and it will give them an opportunity to expand their business globally. Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year. Therefore, it is important for the Entrepreneur to carefully consider the features of a OPC prior to incorporation.

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