The concept of One Person Company [OPC] is a new form of business, introduced by The Companies Act, 2013 [No.18 of 2013], thereby enabling Entrepreneur(s) carrying on the business in the Sole-Proprietor form of business to enter into a Corporate Framework. One Person Company is a hybrid of Sole-Proprietor and Company form of business and has been provided with concessional/relaxed requirements under the Act.

Advantages of a One Person Company

Body Corporate

Just like a Company, OPC is also body corporate, which means it has its own existence.

Perpetual succession

Just like Private limited companies, OPC also enjoy perpetual succession because the company is its own legal entity. Shareholders and employees act “as agents of the company,”

Limited liability

It means that if the company experience financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.

Incorporated as private limited company

OPC is just like private limited company with few relaxations from the requirement of compliances of companies Act, 2013.

Compliances

As compared to a private company, the number of compliances are on lesser side in case of OPC.

Easy to Form

It is very easy to form OPC, as the process is very simple as compared to Companies and does not involve much formality.