The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, 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.
1. OPC requires only one person as a shareholder i.e. 100% shareholding in one hand.
2. Apart from shareholder appointment of one nominee is requisite in OPC.
3. Maximum number of Director in an OPC can be raised to 15 only by passing special resolution.
4. Maximum Paid Capital in an OPC can be Rs. 50 Lac and Average turnover limit is Rs. 2 Crores.
5. Mandatory Conversion to Private limited Company is necessary in case an OPC exceeds the limit of Rs 2 crores turnover.