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ONE PERSON COMPANY

 One Person Company(OPC) was a new concept introduced in Companies Act 2013.In Private Company minimum number of member required is 2,in Public Company minimum number of members is 7 and in Limited Liability Partnership(LLP)minimum number of partners required is 2.But OPC is totally different as number of member required is 1 only. A single person could not incorporate a Company before OPC was introduced but in OPC only 1 member is required and mimimum number of director required is 1. A single shareholder holds 100 percent shareholding.

Only a natural person who is a resident of India and also a citizen of India can form a one person company.In event of death or incapacity of member, nominee will become the member of the company so it is required to appoint a nominee for OPC. An individual cannot have two different one person companies in his name at the same point of time and the said person shall not be a nominee of more than a One Person Company.

OPC has gain its importance in few years because of its benefit of sole member with limited liability and separate legal entity having perpetual succession, which is required to be registered as per the provisions of the Companies Act, 2013. Businesses that require huge capital and have financial risks may prefer to register as OPC. This is because banks and financial institutions prefer to provide funding to OPC rather than a proprietorship firm.

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