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One Person Company means a Company which has only one person as a member. It is classified as Private Company under the Companies Act, 2013. It is a Company registered with only single person as a shareholder. One Person Company is a separate legal entity from its members.


 1.  Only a natural person who is resident in India and citizen of India can only be appointed as member of One Person Company.

 2.    In order to get eligible as OPC, turnover should not exceed more than is 2 Crore.

 3.    Only one shareholder is allowed in One Person Company.

 4.    It is a separate legal entity.

 5.    It has limited liability unlike the sole proprietorship where the proprietor has unlimited liability.


 1.  Limited liability: In a One Person Company the liability of the single shareholder is limited to the unpaid subscription money. The liability of the members in respect of the company's debts is limited.

 2.    Separate Legal Entity: A Company is a separate legal entity from its members. The company is distinct from that of its owner, the personal assets of the shareholders and directors remain protected in case of a credit default.

 3.    Easy to manage: In One Person Company there is only single shareholder this leads to fast decision making and execution.

 4.    Less Compliance: OPC is one of the easiest forms of corporate entities to manage. Very few ROC filing is to be filed with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM) and only two board meetings are required in a calendar year.

 5.    Capital Contribution: No minimum capital contribution is required to form a One Person Company.

 6.   Borrowing Capacity: Banking and financial institutions may prefer to lend money to the OPC form of business as compared to Sole Proprietorship and Partnership Firms as this is a corporate form of doing business and accordingly has greater transparency.



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