A One Person Company (OPC) is one of the most innovative business structures introduced in India under the Companies Act, 2013. It bridges the gap between a sole proprietorship and a private limited company, offering entrepreneurs the best of both worlds. With OPC, a single person can run and control the entire business while still enjoying the benefits of limited liability and a separate legal entity.
Unlike a sole proprietorship where the owner and the business are considered the same, an OPC creates a legal distinction between the business and its owner. This means the individual’s personal assets are protected, and liability is limited only to the investment made in the business.
Only one person is required as the shareholder and director
Limited liability protection to safeguard personal assets
Separate legal identity from the owner
Easy to raise funds and build credibility
Simple compliance compared to Private Limited Companies
Only one individual (Indian citizen and resident) can form an OPC
The person must be at least 18 years old
A nominee is required (who takes over in case of death/incapacity of the owner)
Legal recognition as a corporate entity
Full control of the business with one owner
Limited liability protects personal savings
Better access to loans and funding
Suitable for small entrepreneurs and professionals
A One Person Company (OPC) is a business structure that allows a single individual to form and manage a company with the benefits of limited liability and separate legal identity, similar to a Private Limited Company.
Any Indian citizen and resident (who has lived in India for at least 120 days during the financial year) can register an OPC. The person must be at least 18 years old.
No. As the name suggests, an OPC can have only one shareholder/owner. However, a nominee must be appointed who will take charge if the owner is unable to continue.
Yes. A nominee is mandatory in OPC. The nominee takes over the company’s ownership in case of the owner’s death or incapacity.
Limited liability protection
Separate legal identity
100% control with one owner
Easy to manage and operate
Better credibility than sole proprietorship
Yes. An OPC can be voluntarily converted into a Private Limited Company or a Public Limited Company after meeting certain requirements.