An One Person Company (OPC) is a unique form of business structure introduced to support single entrepreneurs who want to enjoy the benefits of a corporation while maintaining complete control. One Person Companies are popular among individual entrepreneurs, freelancers, and small business owners who want to benefit from limited liability and structured growth without taking on partners. Here’s an overview of its main features:

Single Owner: As the name suggests, an OPC can have only one person as its member or shareholder. This is ideal for individual entrepreneurs who want to operate as a company without needing a partner or co-founder.

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Limited Liability: The owner's liability is limited to their investment in the company, protecting personal assets from business debts or liabilities, similar to other limited companies.

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Separate Legal Entity: An OPC is a distinct legal entity, separate from its owner. It can hold assets, enter contracts, and be sued or sue in its own name, adding credibility to the business.

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Nominee Requirement: Since an OPC has only one shareholder, the owner is required to appoint a nominee (usually a family member or trusted associate) who will take over the company in case of the owner's death or incapacity. This nominee has no role in management unless they assume ownership.

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No Transfer of Ownership: Unlike other company structures, an OPC has restrictions on the transfer of shares or ownership since there is only one shareholder. Ownership remains with the individual owner.

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Compliance Requirements: While OPCs have simpler compliance requirements than Pvt Ltd or public companies, they still need to file annual returns, hold board meetings (even if there’s just one board member), and adhere to other basic statutory requirements.

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Conversion Limits: OPCs are typically limited to smaller businesses, and once they reach certain thresholds (e.g., revenue or paid-up capital limits defined by local laws), they must convert into a Private Limited Company to support further growth.

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Ease of Funding: An OPC can attract funding, but it may face limitations compared to larger companies since it cannot sell shares to the public and has a single-owner structure.