Quick Summary
One Person Company allows a single individual to start a company with limited liability protection.
One Person Company (OPC) is a company with only one person as its member. It was introduced through the Companies Act, 2013 to support solo entrepreneurs who want to start their own venture with limited liability.
Key Features
- Only one shareholder/member
- Only one director (can have up to 15)
- Limited liability protection
- Separate legal entity
- Perpetual succession
- Must nominate one person
Eligibility
- Only natural person (Indian citizen) can form
- Must be resident in India (stayed 182+ days in previous year)
- Can form only one OPC
- Nominee must also be Indian resident
- Minors cannot form OPC
Restrictions
- Cannot carry out NBFC activities
- Cannot convert to Section 8 company
- Must convert to Private Limited if paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore
- Cannot voluntarily convert before 2 years
Key Points
- Single shareholder company
- For solo entrepreneurs
- Must have nominee
- Convertible to Private Limited
- Only Indian citizens can form