Recently, the One Person Company (OPC) was introduced as a successful refinement over the sole proprietorship. In OPC, a single promoter assumes full control over the company while restricting his/ her liability towards their contributions to the company. The said person will then be the sole shareholder and director (although a nominee director is present, but has zero control unless the actual director proves incapable of entering into the contract). OPC can also be known as Single Man Company or Single Person Corporation, etc.

Under section 2 (62) of the Companies Act 2013, Single Person Limited Company means a company incorporated under the Companies Act 2013 having only one person as a member. It is a new form of business that came into existence through the Companies Act in the year 2013. It is a form of business having a separate legal entity from its promoter, just like other forms of company. The main advantage of a One Man Company or One Person Corporation form of company is that there can be only one member with whom the company can get incorporated, while a minimum of two members is required for incorporating and maintaining a private limited company or seven-member are required for incorporating and maintaining a public limited company.

Through this form of a business single person alone can operate a corporate entity with limited liability protection; an OPC does have a few limitations.

Under this form of company, the member needs to compulsory nominate one person as his/her as nominee for incorporating the company and that nominee will give his/her consent under form INC-3 for becoming the nominee of such person.

Why 1 Person Company

➲ East way to jump into the corporate world

One Person Limited Company form of business is an easy and simple way to get into the corporate world, and it is an easy way for a good start-up. As compare to Sole Proprietorship, it is a better option for the start-up as in this form of business liability of the member is limited. It is a good platform for incorporating a company form of business, having ownership, and extremely feasible for companies like One Person Consulting Company, etc.