A One Person Company (OPC) is a type of business entity that allows a single individual to incorporate and run a company with limited liability. It is a legal structure that combines the benefits of a sole proprietorship and a company, offering a single person the advantages of limited liability protection and a separate legal identity for the business.

Key features of OPC

• Single Member: An OPC can have only one member or shareholder. This individual holds 100% of the shares and has full control over the company’s affairs.

• Limited Liability: One of the main advantages of an OPC is that the liability of the member is limited to the extent of their shareholding. This means that the personal assets of the member are protected from the debts and liabilities of the company.

• Separate Legal Entity: An OPC has a distinct legal identity separate from its member. This means that the company can enter into contracts, own assets, and engage in legal proceedings in its own name.

• Nominee Director: To comply with legal requirements, an OPC must appoint a nominee director. The nominee director acts on behalf of the member in case of their incapacity or death. However, the nominee director does not have any ownership rights in the company.

• Perpetual Existence: The existence of an OPC is not affected by the death or retirement of its member. The company continues to exist and can be transferred to another individual as per the member’s wishes.

• Legal Compliance: OPCs are subject to certain legal obligations and compliance requirements similar to other types of companies. These include filing annual financial statements, holding annual general meetings, and maintaining proper accounting records.