What Is A One Person Company?

Unlocking Opportunities: Key Features of India's One-Person Company (OPC)

1. Single Ownership: An OPC can have only one shareholder, and that individual is the sole owner of the company. This means that the business is controlled and managed by a single person.

2. Limited Liability: In an OPC, the owner's liability is limited, protecting their assets in case of financial losses or legal issues.

3. Separate Legal Entity: An OPC is considered a separate legal entity distinct from its owner. It can enter into contracts, own property, and sue or be sued in its name.

4. Nominee Director: An OPC must appoint a nominee director during incorporation to ensure business continuity if the owner is unable to manage the company.

5. No Minimum Capital Requirement: There is no specific minimum capital requirement to start an OPC. The owner can begin with any amount of capital they deem suitable for their business.

6. Tax Benefits: OPCs are eligible for various tax benefits and incentives available to small businesses, such as lower corporate tax rates and exemptions.

7. Annual Compliance: OPCs are subject to certain annual compliance requirements, including filing financial statements and annual returns with the Registrar of Companies (ROC).

8. Conversion: As the business grows, an OPC can be converted into a private limited company if it meets the eligibility criteria.

9. Limited Business Activities: While OPCs can engage in most business activities, there are restrictions on certain types of businesses, such as non-banking financial activities and investment in securities.

10. Name Selection: The name of an OPC should end with "One Person Company" to distinguish it from other types of companies.