One Person Company

One Person Company is for the entrepreneurs who on their own are capable of starting a venture by creating a single person economic entity. It was first introduced through the Companies Act, 2013. Amongst other advantages, the main advantages of a One Person Company (OPC) is that there can be only one member in an OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). A One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

In spite of the fact that a One Person Company is for alone Entrepreneur to operate a corporate entity with limited liability protection, an OPC also have some limitations also. As for example, every One Person Company (OPC) must nominate a nominee Director in the Memorandum of Association and Articles of Association of the Company - who will become the owner of the OPC in case the sole Director is disabled. Again, if it crosses an annual turnover of Rs.2 crores, it must be converted into a Private Limited Company and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Thus, it is a matter of concern for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.

One of the most important benefits of a One Person Company (OPC) is that there is only one member of the company, while a minimum of two members is required for organizing and maintaining a Pvt Ltd Company or a LLP. You can register the one-person company at GST Suvidha Centre for easy and quick service.