One Person Company

A One Person Company (OPC) is a business structure introduced in some jurisdictions to enable entrepreneurs to start a company and operate it as a separate legal entity, with limited liability, while being the sole shareholder and director. This structure provides a sense of legitimacy and protection to small business owners who want to venture into entrepreneurship without the need for partners.

1. Single Promoter: An OPC can be formed with just one person as its shareholder and director.
2. Limited Liability: The liability of the shareholder is limited to the extent of their investment in the company. Personal assets of the shareholder are generally protected from the company’s liabilities.
3. Separate Legal Entity: An OPC is considered a separate legal entity distinct from its owner. It can own assets, enter into contracts, and sue or be sued in its own name.
4. No Minimum Capital Requirement: There’s usually no requirement for minimum authorized capital to start an OPC, making it more accessible to small entrepreneurs.
5. Conversion: As the business grows, the OPC can be converted into a private limited company, which allows for more shareholders and greater access to capital.
6. Less Compliance: Compared to other forms of business structures, OPCs often have simpler compliance requirements, making them easier to manage for a single person.