To understand the concept of a One Person Company (OPC), it’s important to recognize the distinct identity it offers. OPC registration grants corporate status and several benefits to its sole member and director. Unlike a traditional Private Limited Company, which requires a minimum of two members, an OPC allows a single individual to enjoy the advantages of incorporation. Introduced under the Companies Act, 2013, this structure was designed to remove the limitations faced by solo entrepreneurs. The registration process for an OPC is streamlined and can be completed online.
An OPC is characterized by having only one shareholder who holds 100% ownership of the company. To ensure business continuity, appointing a nominee is mandatory—this person steps in if the owner passes away or becomes incapacitated. Despite having just one member, an OPC is legally treated as a type of Private Limited Company.