One Person Company
Company.—(1) Only a natural person who is an Indian citizen and resident in India—
One Person Company
(a) shall be eligible to incorporate a One Person Company;
(b) shall be a nominee for the sole member of a One Person Company
⦁ Company may be a One Person Company (OPC) which requires only one person as a subscriber to form a company and such a company will be treated under the Act as a private company.
⦁ A person, who registers one-person company, is not eligible to incorporate more than one one-person company
⦁ The memorandum of OPC must indicate the name of a person (other than the subscriber), with his prior written consent in the prescribed form, who will become a member of the OPC when the subscriber dies or is incapacitated to contract.
⦁ The nominee to the memorandum of one person company shall not be eligible to become a nominee for more than one such company.
A One Person Company (OPC) Private Limited has many advantages as compared to Companies and Proprietorship firm.
The One person Company includes in the definition of “Private Limited Company” given under section 2(68) of the Companies Act, 2013. Thus, an OPC will be required to comply with provisions applicable to private companies. However, OPCs have been provided with a number of exemptions and therefore have lesser compliance related burden.
OPC will bring the unorganized sector of proprietorship into the organized version of a private limited company. Various small and medium enterprises, doing business as sole proprietors, might enter into the corporate domain. The organized version of OPC will open the avenues for more favorable banking facilities. Proprietors always have unlimited liability. If such a proprietor does business through an OPC, then liability of the member is limited.
√ Minimum 1 Shareholder
√ Minimum 1 Director
√ The director and shareholder can be same person
√ Minimum 1 Nominee
√ No Need of any Minimum Share Capital
√ Letters ‘OPC’ to be suffixed with the name of OPCs to distinguish it from other companies